The CSSF Circular 18/698 is significantly impacting how 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.
Managers based out of Luxembourg must comply with Circular 18/698 by the end of May, 5 months following the end of the financial year.
Circular 18/698 was published on 23 August 2018 and applies to all managers established in Luxembourg.
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.
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.
Transparency is key with regards to the entire distribution channels from the managers to the end- investor.
Execution of due diligence obligations has a strong onus on generally applicable “risk-based approach” already imposed by the EU AML law.
Circular 18/698 specifies the obligations of managers with regards to the delegation of oversight and includes IT, compliance, internal audit and finance provisions.
Managers must implement a range of complex oversight requirements for global distributors.
Managers 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.
Investing in digitalisation is a must-have and essential to gain a competitive advantage in the current market environment.
Investment advisors play a vital role in guiding investors towards suitable investment funds and allocations. For this important function they often are paid a commission, also known as trailer fee or retrocession, by the asset manager. And since this remuneration forms a relevant part of the advisor’s revenue, it is key for the product provider to have commission calculation and related payments efficiently set up.
More than 25 years ago, when I started in the financial services industry, it was enough to collect and disseminate around 50 data points for an investment fund to be added on a distribution platform or in a data vendor’s database.
I initially joined Acolin as a Due Diligence Officer and have been a Due Diligence Team Lead for a year and a half now. In former roles as a lawyer, I worked and participated in several M&A transaction due diligence projects. But it is only since I joined Acolin that I came to fully understand […]
I have been working in the asset management industry for more than 2 decades, having had the chance to cover various roles in different firms, from Portfolio Management to Consultant as well as Sales & Business Development.
In the ever-changing world of financial markets, Exchange-Traded Funds (ETFs) have become increasingly popular among investors. As the fund flows numbers for 2023 roll in, we again see that investors are replacing holdings on traditional UCITS funds with investments in ETF’s. Acolin is at the center of fund distribution in Europe and our specialized Distribution Network Management (DNM) service has seen these changes first-hand. Here we explore the nuances of Acolin DNM service and how it seamlessly integrates ETFs into key distribution platforms.
The world of finance is ever-evolving, innovation and technology are continuously shaping how we research, find and invest in funds. As Acolin, we look on us as one of the game-changers in the industry, with our dedication to simplifying and streamlining the complex world of fund distribution. We get our asset manager clients close to the action relevant for them and their products.
In a market teeming with over a hundred thousand funds overseen by numerous asset managers, a crucial question emerges: how can you stand out? The concise answer: deliver results, cultivate recognition, and ensure accessibility.