FAQ concerning the Luxembourg Law of 17 December 2010 relating to undertakings for collective investment (Updated)
Executive Summary
This CSSF FAQ (Version 23, updated 17 February 2026) provides interpretive guidance on the Luxembourg Law of 17 December 2010 relating to undertakings for collective investment (UCIs), covering UCITS, Part II UCIs, SIFs, and SICARs. It matters for compliance professionals as it clarifies authorisation processes, investment rules, and supervisory expectations, ensuring alignment with evolving EU frameworks like AIFMD and MiCAR. The update, effective today, addresses recent regulatory shifts including crypto-asset integration. #
What Changed
- - Authorisation Requirements: UCIs require CSSF approval of constitutive documents (articles, management regulations), depositary selection, and management company/AIFM applications for contractual forms. Corporate UCIs need similar approvals for app
- Crypto-Asset Updates (aligned with separate but related FAQ Version 7): Replaces "virtual assets" with "crypto-assets" per MiCAR (EU 2023/1114); UCITS and retail AIFs (non-well-informed investors) capped at 10% NAV indirect exposure; AIFs for well-in
- Investment Policies and Liquidity Management: Funds must detail objectives, strategies, asset classes, restrictions, borrowing, and conflicts; look-through for intermediary vehicles per ESMA/AIFMD Annex V; liquidity management tools (LMTs) apply equa
- Risk Spreading Exemptions: Limits do not apply to OECD/EU-guaranteed securities or UCIs with comparable risk-spreading.
- Depositary Role in Crypto: Luxembourg depositaries can custody crypto-assets with safeguards and CSSF notification; responsibility varies by model (depositary or MiCAR provider).
Suggested Considerations
- Review and Update Documents: Align UCI constitutive documents, investment policies, and sales documents with clarified rules on strategies, LMTs, conflicts, and risk-spreading; apply look-through for intermediaries.
- Crypto-Specific: For >10% NAV exposure, apply for "Other-Other Fund-Crypto-assets" extension (custody, valuation, AML/CFT plans, expertise); notify CSSF for depositary crypto custody; implement heightened AML/CFT due diligence per FATF/Luxembourg assessments.
- Authorisation/Amendments: Submit for CSSF approval on new setups, manager changes, or sub-funds (esp. SICAV multi-sub-funds with EU cross-border services).
- Governance and Reporting: Ensure RC/RR demonstrate crypto risk understanding; update disclosures for investors on risks, LMTs, and fair treatment.
- Ongoing Compliance: Use FAQ/Compilation for RAIFs/SIFs/SICARs/Part II UCIs; auditors/managers confirm tax-exempt status for SICARs.
Key Dates
Compliance Impact
Urgency: High – The update coincides with MiCAR implementation and today's release, requiring immediate review for crypto-exposed funds to avoid unauthorised strategies or AML gaps; non-compliance risks supervisory actions, authorisation delays, or investor disputes in Luxembourg's key fund domicile.
Who is Affected
References
AI-generated analysis. May contain errors or omissions — verify with the original CSSF source before acting. Full disclaimer.
Summary
Version 23