From 1 January 2023, UCITS will have to provide a PRIIPs KID to retail investors and either a UCITS KIID or a PRIIPs KID to non-retail investors. The CSSF requires Luxembourg UCITS to file their PRIIPs KIDs between 1 January 2023 and 31 January 2023 and not to issue PRIIPs KIDs to investors in UCITS prior to 1 January 2023.
On 16 December 2022, the CSSF published an updated version of its FAQ on the Law of 17 December 2010 on undertakings for collective investment (UCIs) and provided practical guidance to the Luxembourg UCITS industry on how to introduce the PRIIPs KID.
In a nutshell, the additions to the FAQ can be summarised as
follows:
- Manufacturers of Luxembourg UCITS made available to retail
investors in the EU/EEA need to have a PRIIPs KID in place as of 1
January 2023, following the expiry of the exemption period provided
for in Article 32(1) of Regulation (EU) 1286/2014 (PRIIPs
Regulation).
- It will not be possible to file PRIIPs KIDs for UCITS with the
CSSF before 1 January 2023 and no PRIIPs KID should be issued to
investors in a UCITS prior to 1 January 2023.
- PRIIPs KIDs for UCITS can be filed with the CSSF until 31
January 2023. Non-compliance with this filing deadline will be
considered a breach of the PRIIPs Regulation and the CSSF may
impose sanctions accordingly.
- For now, the naming convention/procedure for the filing will
remain the same as for UCITS KIIDs (Circular CSSF 19/708 and
Circular CSSF 11/509).
- There is no need to provide a PRIIPs KID if the UCITS is no
longer available to retail investors as of 1 January 2023 and
changes to the existing commitments/investments are only subject to
the contractual terms and conditions agreed before that date.
- Luxembourg retail UCITS whose offer is closed on 31 December
2022 are still required to update their UCITS KIIDs annually, even
after 1 January 2023.
- UCITS made available to investors in non-EU countries may
continue to draw up a UCITS KIID. However, the CSSF recommends
verifying local rules and liaising with the local regulator of the
countries where the UCITS is distributed, so as to be fully
informed about applicable local requirements in terms of key
investor information.
For those UCITS continuing with a UCITS KIID, the updated version of the CSSF's FAQ on KIIDs continues to apply. Luxembourg UCITS reserved to professional investors or to investors outside the EU/EEA are within the scope of the updated FAQ on KIIDs, unless the manufacturer has decided to draw up a PRIIPs KID as set out in the PRIIPs Regulation.
For further information, please reach out to your usual contact within the Fund Formation Group.
The updated version of the CSSF FAQ on KIIDs is accessible here
The updated version of the CSSF FAQ on the UCI Law is accessible here
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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