New Statement on Performance Fee – Finance and Banking

House Financial Services Committee considers credit reporting legislation fair - Finance and Banking

Maples Group

08 October 2021

Highlights


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Investment fund managers (“IFMs”) that manage
Luxembourg-based UCITS or AIFs, irrespective of whether they are
subject to a performance fee, are required to complete a
performance fee declaration on the eDesk platform from 30 September
2021.

On 22 September 2021, Luxembourg’s financial regulator, the
Commission de Surveillance du Secteur Financier
(“CSSF”), issued a press release1 announcing
the launch of a new performance fee module on its eDesk
platform2.

Background

The requirement to complete a declaration follows the
publication of CSSF’s circular 20/7643, which
confirmed that the CSSF has integrated the European Securities and
Markets Authority’s guidelines on performance fees in UCITS and
certain types of AIFs (the “Guidelines”4) into
its administrative practices and regulatory approach, and will
enable the CSSF to capture standardised key information in relation
to performance fees and ensure compliance with the Guidelines.

Deadlines The declaration will be available from 30 September 2021 for all
funds with a July to December 2021 financial year end and from
January 2022 for all funds with a January to June 2022 financial
year end.

The deadline for submission of the initial declaration will be
set out in the IFM’s performance fee eDesk dashboard, however
for funds with a July and September 2021 financial year end, the
deadline for submission of the initial declarations is 30 November
2021. A declaration must also be submitted in respect of funds and
sub-funds that are not subject to a performance fee; funds that did
not launch following CSSF approval as well as funds that became
inactive following the full redemption of their shares or
units.

Ongoing Obligation In the event of changes to the initial declaration, for example
the introduction of a performance fee for the first time or changes
in respect of the performance fee model, IFMs must update the
performance fee declaration.

Footnotes 1. https://www.cssf.lu/en/2021/09/investment-fund-managersare-invited-to-declare-via-a-new-dedicated-edesk-applicationthe-performance-fee-models-applicable-to-luxembourg-ucitsor-aif-they-manage/?utm_campaign=email-210922-c7159

An eDesk user linked to the IFM may complete and submit the
performance fee declaration and any subsequent updates. Further
information is available on the eDesk platform. To facilitate this, a specific update option will be included in
the eDesk platform in the near future and this must be utilised in
parallel to filing an updated prospectus / offering memorandum with
the CSSF in the usual manner.