CSSF Press Release 19/48 of 11 October 2019 follows up on CSSF press releases 19/41 and 19/43 with respect to the mandatory notification in the context of Brexit and the opening of dedicated CSSF eDesk portals

     1. UK managers who have not submitted a notification through dedicated Brexit portal by 15 September 2019

In case of a hard Brexit, UK managers (UK Alternative Investments Fund Managers – AIFMs of alternative investment funds established in Luxembourg (i.e. Luxembourg regulated or non-regulated AIFs; including RAIFs) will not be entitled to continue their activities as from 1 November 2019 under the transitional period provided by the Laws of 8 April 2019 on Brexit (the “Brexit Laws”) and will be considered “third-country managers”.

Before 31 October 2019, these UK managers will therefore be required to seek the approval of the Professional Investors (as defined under CSSF Press Release 19/48) of the AIFs they manage to remain a third-country manager for the eligible AIFs after the occurrence of a hard Brexit.

However, this option is limited only to those AIFs whose direct or indirect investors are Professional Investors (as defined under CSSF Press Release 19/48).

In case the UK managers decide to continue their activities as from 1 November 2019, they must seek the approval of the Professional Investors prior to 31 October 2019 and send required documents such as evidence of the approval of the Professional Investors (as described in CSSF Press Release 19/48) to the CSSF. Otherwise, such UK managers will be in breach of applicable requirements in Luxembourg as of the date of the hard Brexit. The CSSF reserves the right to publish a list of those UK managers.

     2. UK managers who have submitted a notification through dedicated Brexit portal by 15 September 2019

In case of a hard Brexit, UK Managers have the option of opting for the continuation as third-country managers for the eligible AIFs (including RAIFs) and waiving any right to benefit from the transitional period. In this case, those UK managers will be required to seek approval of the Professional Investors (as defined under CSSF Press Release 19/48) before 31 October 2019. The earlier notification submitted through the CSSF portal will thus be discarded. Those UK managers shall send the required documents such as evidence of the approval of the Professional Investors (as described in CSSF Press Release 19/48) to the CSSF.

Please also refer to previous DSM legal news:

For any other information or queries, please contact Renaud Le Squeren.