FAQ Crypto-Assets – Undertakings for collective investment (Updated)

What Changed

The most significant regulatory modifications in Version 7 include: Investment Limits for UCITS UCITS may invest indirectly in crypto-assets for a maximum of 10% of their net asset value (NAV). These indirect investments are limited to transferable securities that do not embed derivatives in accordance with Article 10 of the Grand-ducal Regulation of 8. Investment Limits for AIFs AIFs open to retail investors other than well-informed investors may invest in crypto-assets for a maximum of 10% of their NAV. However, AIFs may invest directly and indirectly in crypto-assets under MiCAR's scope, provided such investments do not prevent compliance with existing regulatory requirements. Authorization Requirements for Elevated Exposures Any AIFM intending to manage an AIF investing in crypto-as

Suggested Considerations

• *Immediate Compliance Steps:
• *Portfolio Audit: Conduct a comprehensive review of all UCITS and AIF holdings to identify current and potential crypto-asset exposures, both direct and indirect (including derivatives with crypto underlyings).
• *Investment Policy Updates: Revise fund documentation, prospectuses, and investment policies to reflect the 10% NAV limits and MiCAR compliance requirements.
• *Risk Management Assessment: Update risk management policies to address crypto-asset volatility, liquidity, and technological risks, with case-by-case impact assessments on fund risk profiles.
• *Investor Notification: Ensure transparent and timely communication with investors regarding any crypto-asset investments or policy changes.
• *CSSF Notification: UCITS envisaging crypto-asset investments must inform the CSSF of such plans in advance.

Key Dates

Who is Affected