Pursuant to Article 7bis of the SICAR Law(1) , the CSSF published on 31 December 2015, CSSF Regulation 15-08(2) . This Regulation lays down the requirements in relation to the management of conflicts of interest for SICARs which are not managed by an authorised AIFM ("CSSF Regulation 15-08").
As for CSSF Regulation 15-07(3), the CSSF restricts the application of CSSF Regulation 15-08 to SICARs which are not managed by an authorised AIFM and which cannot therefore rely on the risk management process and conflicts of interest policy established by their authorised AIFM(4).
As a consequence, CSSF Regulation 15-08 is relevant for the following SICARs:
- SICARs qualifying as internally managed registered AIFM;
- SICARs managed by an external registered AIFM;
- SICARs managed by a non-EU AIFM;
- SICARs non-AIFs.
CSSF Regulation 15-08 provides general criteria for drawing up an efficient conflicts of interest policy.
CSSF Regulation 15-08 was published in the Mémorial (Luxembourg's official gazette) on 13 January 2016 and entered into force on 1 February 2016.
SICARs in existence on the day of entry into force benefit from a grace period and must comply with the requirements laid down in CSSF Regulation 15-08 by 31 March 2016 at the latest and must therefore adopt an adequate conflicts of interest policy by that date.
(1) SICAR Law refers to the Law of 15 June 2004 relating to investment companies in risk capital ("SICARs"), as amended.
(2) CSSF Regulation 15-08 lays down the application measures of Article 7a of the law of 15 June 2004 relating to the investment company in risk capital (SICAR) as regards the requirements in relation to the management of conflicts of interest for SICARs which are not referred to in the specific provisions of Part II of this law.
(3) For more information on CSSF Regulation 15-07, see previous article in this Newsletter "SIFs: Conflicts of interest and risk management".
(4) AIFM refers to alternative investment fund manager.