Back to Insights Page

10 important facts Investment Fund Managers should know about CSSF Circular 18/698

By Lorcan Murphy

The CSSF Circular 18/698 is significantly impacting how IFMs (Investment Fund Managers) based out of Luxembourg are operating. ACOLIN has put together 10 important facts to help you get to grips with what is expected.

  1. IFMs based out of Luxembourg must comply with Circular 18/698 by the end of May, 5 months following
    the end of the financial year.

  2. Circular 18/698 was published on 23 August 2018 and applies to all IFMs established in Luxembourg.

  3. The CSSF has clarified its expectation on the oversight of fund distribution channels which are founded on the latest EU anti-money laundering (AML) and terrorist financing controls directives.

  4. Oversight of direct and in-direct investors at the point of sales imposes obligations toward the oversight of registrar agents (“TA”) within the transaction and settlement process.

  5. Transparency is key with regards to the entire distribution channels from the IFM to the end investor.

  6. Execution of due diligence obligations has a strong onus on generally applicable “risk-based approach” already imposed by the EU AML law.

  7. Circular 18/698 specifies the obligations of IFMs with regards to the delegation of oversight and includes IT, compliance, internal audit and finance provisions.

  8. IFMs must implement a range of complex oversight requirements for global distributors.

  9. IFMs should evaluate whether to outsource delegation oversight to a third party, allowing them to benefit from not only an existing infrastructure, but also highly experienced staff.

  10. Investing in digitalisation is a must-have and essential to gain a competitive advantage in the current market environment.

For more information about how we can support you with your delegation oversight responsibilities, please contact Lorcan Murphy

Download Full Article

Insights

Going against the grain. Why charging clients to access their data is wrong

The asset management sector is a very crowded market. One could even argue it takes a village to keep the fund distribution machine going, with many participants working to support the asset manager in an increasingly complex...

Read More

10 important facts Investment Fund Managers should know about CSSF Circular 18/698

The CSSF Circular 18/698 is significantly impacting how IFMs (Investment Fund Managers) based out of Luxembourg are operating. ACOLIN has put together 10 important facts to help you get to grips with what is expected. 1. IFMs...

Read More

Current information on the coronavirus (COVID-19)

We are happy to always keep you up to date on our precautions regarding COVID-19 and eventual side effects on our company. The ACOLIN Group continues to take the development of COVID-19 very seriously and follows the...

Read More

Alternatives and the quest for real alpha

In 2020, markets could be summed up as a tale of two extremes and alternative investment funds followed a similar pattern. The first quarter was exceptionally difficult with many funds posting massive drawdowns due to the...

Read More

Send Us a Message

For any inquiries, please fill in the following contact form.