Investment Funds 

What’s new? 

Further to publication by the European Securities and Markets Authority (“ESMA”) of guidelines on performance fees in November 2020 (applicable since 6 January 2021), the CSSF issued Circular CSSF 20/764 on 18 December 2020 and integrated the Guidelines into its administrative practice and regulatory approach, with the aim of ensuring proper disclosure to investors of performance-fee models in accordance with the Guidelines. 

In this context, the CSSF has introduced a new eDesk module on performance fees and will require the investment fund managers ("IFMs") of Luxembourg-based UCITS or AIFs they manage to complete a questionnaire, as from 30 September 2021.

eDesk procedure and deadlines 

The eDesk performance fee module contains a dashboard with a list of funds and sub-funds concerned by the questionnaire and data collection. 

The time of submission of the performance fee questionnaire and the confirmation of compliance with the Guidelines will vary depending on the closing date of the fund's financial year: 

• funds whose financial year ends between July 2021 and December 2021 will be listed in the performance fee dashboard as from 30 September 2021 and their IFMs must submit the completed questionnaire and the confirmation of compliance with the Guidelines as from this date; 
• for funds whose financial year ends between January 2022 and June 2022 the completed questionnaire and the confirmation of compliance with the Guidelines will be required as from January 2022. 

The initial questionnaire must be submitted at the latest before the corresponding closing date of each fund as further specified in the IFM corresponding performance fee eDesk dashboard. Please note, however, that for funds whose financial year ended between July and September 2021 and which are already subject to the Guidelines, the deadline for submission of the initial questionnaire is 30 November 2021. 

Performance fee questionnaires shall be kept up to date by the IFM. The questionnaire, as well as any subsequent updates, must be completed and submitted by an eDesk user linked to the IFM. In addition, a specific update function will be made available in the new eDesk module to allow the submission of any changes electronically, along with transmission of the modified prospectus/issuing document. 

The CSSF will also make available on eDesk a user guide on the questionnaire.

In view of these upcoming changes, NautaDutilh's Investment Funds team remains at your disposal to answer any questions related to the performance fee questionnaire and the confirmation of compliance, as well as to assist you in completing all necessary procedures on the eDesk platform and complying with the CSSF's requirements.