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New CSSF taxonomy fast track procedure
06/12/2021

On 2 December 2021, a CSSF press release on regulatory requirements and fast track procedure in relation to Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investments (the so called “Taxonomy Regulation” “TR”) and Regulation 2019/2088 on sustainability-related disclosures in the financial services sector(“SFDR”) was released.

Key points

The below details:

›  the conditions and deadline of the new CSSF TR fast track procedure;

›  some additional CSSF statements on the use of templates under draft SFDR Regulatory Technical Standards.

CSSF TR fast track procedure

1. What is this new TR fast track procedure about?

The CSSF TR fast track procedure aims to facilitate the submission and CSSF visa stamp of prospectus/issuing documents regarding TR updates for Luxembourg regulated funds.

2. Which entities will benefit from it?

›  UCITS: Luxembourg management companies updating prospectus/issuing document of Luxembourg UCITS funds; and

›  AIFs: Luxembourg authorised or registered AIFMs updating prospectus/issuing document of regulated AIFs or ELTIFs.

The managers are required to include the disclosures under articles 5, 6 and 7 TR. As far as funds under article 8 or 9 SFDR are concerned, they shall also provide for transparency with regard to the environmental objectives of climate change mitigation and climate change adaptation in pre-contractual documents by 1 January 2022.

3. What is the deadline?

Management companies / AIFMs must submit to the CSSF the relevant documents (see below question 5) and in particular an updated prospectus/issuing document version for visa stamp by 17 December 2021 to obtain the visa- stamp before 31 December 2021. Any submission after that date will be dealt with on a best efforts basis.

4. Are there any conditions to fulfil?

In order to benefit from this CSSF TR fast track procedure, updates must be limited to reflect only the changes required under Articles 5, 6 and 7 of the TR.

5. Which documents are required?

For UCITS

›  An updated prospectus/issuing document to be submitted for visa stamp;

›  A confirmation letter, under the ultimate responsibility of the management company/AIFM/fund is requested. It is a self- certification confirming TR compliance of the prospectus/issuing document update. This letter must be duly signed by authorised persons.

› If applicable, the notice to inform investors on a prospectus/issuing document update.

For AIFs

›  Luxembourg based authorised AIFMs should submit to the CSSF, for each AIF managed, the specific information required under SFDR and the Taxonomy Regulation that has to be disclosed to investors, on the basis of article 6(3) of SFDR, in the disclosures to investors referred to article 23(1) of Directive 2011/61/EU.

›  The information communicated to the CSSF in this regard should be strictly limited to the said specific information and sent to the following email address: [email protected]

›  In their communication to the CSSF, Luxembourg based AIFMs should also clearly indicate where the said specific information has been disclosed to investors. Any future updates in this regard should be communicated to the CSSF in due time via the email [email protected]

All Luxembourg based AIFs managed by an AIFM not authorised or registered by the CSSF, should apply the requirements imposed by the AIFM’s competent authority.

Use of templates under draft SFDR RTS

The pre-contractual disclosures required under SFDR (SFDR Level 1 requirements) came into force on 10 March 2021.These SFDR Level 1 measures were to be supplemented by regulatory technical standards (RTS) produced by the European Supervisory Authorities and bundled into one single delegated act by the EU Commission. This delegated act has not yet been adopted and may enter into force on 1 January 2023. The CSSF encourages financial market participants to already use the new pre- contractual and periodic product templates that have been provided in the draft RTS dated 22 October 2021.

If you have any questions regarding the above, please liaise with your usual Linklaters contact.

 

Silke Bernard - Partner

Hermann Beythan - Partner

Martin Mager - Partner

Josiance Schroeder - Counsel

Related : Linklaters LLP (Luxembourg)

[+ http://www.linklaters.com]


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