
Publication
Calming the storm after the SVB collapse: Prudential policy the key to stability
The collapse of Silicon Valley Bank, Signature Bank and Silvergate Bank in the last week has caused turmoil in global financial market.
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Global | Publication | July 2020
On July 7, 2020, the Commission de Surveillance du Secteur Financier (CSSF) issued an FAQ document on Circular 02/77 concerning the protection of investors in case of NAV calculation errors and the correction of the consequences resulting from non-compliance with the investment rules applicable to undertakings for collective investment (the FAQ).
The FAQ sets out in written form the approach taken by the CSSF over the past few years in respect of certain aspects of the Circular, and from that perspective is not controversial, effectively confirming and pulling together expected Luxembourg practice in respect of NAV calculation errors and investment rule breaches.
The FAQ is split into three sections or ‘chapters’: Chapter I dealing with the interpretative queries relating to the general application of the Circular, Chapter II covering the selection of the correction method to be applied in the context of a NAV calculation error, and Chapter III dealing with a small number of questions pertaining to the tolerance thresholds provided by the Circular.
Of particular utility for fund managers are the Appendices of the FAQ which set out in pictorial format decision trees in respect of (i) the correction of NAV calculation errors, (ii) the correction of investment breaches, and (iii) the use of the economic versus the accounting method for determining the financial impact of the investment breach.
Importantly, the FAQ provides a reminder that active ‘intra-day’ investment breaches (i.e. those investment breaches which occur between two official NAV calculations) are to be reported to the CSSF and compensated in accordance with the Circular.
Overall, the FAQ serves as a noteworthy reminder of the CSSF’s current practice, and is welcomed as a central repository of responses to common queries relating to the Circular.
If you’d like to know more about the Circular, the recently issued FAQ or, more generally, how Norton Rose Fulbright’s Luxembourg team can support you with your investment management projects, please don’t hesitate to contact a member of our team.
Publication
The collapse of Silicon Valley Bank, Signature Bank and Silvergate Bank in the last week has caused turmoil in global financial market.
Publication
The European Union’s Foreign Subsidies Regulation (the FSR) entered into force on 12 January 2023 and creates a new regime aimed at combating distortions of competition on the EU internal market caused by foreign subsidies. It imposes mandatory notification and approval requirements for acquisitions of significant EU businesses and large EU public tenders, and gives the European Commission (EC) extensive powers to launch ex officio investigations. The notification requirements go live on 12 October 2023.
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