CSSF reform of the long form report

With a view to improving its risk-based supervision, the CSSF published three Circulars for prudential and AML/CFT purposes at the end of December 2021. These circulars modify (and replace) the requirements set forth in the updated CSSF Circular 02/81 of 6 December 2002 on the Guidelines concerning the task of auditors of UCITS and Part II UCIs¹ (requiring the preparation of the so-called “Long Form Report”) and extend the revised requirements to other regulated entities (SIFs, SICARs and investment fund managers (“IFMs”)).

The three new CSSF Circulars are listed below:

• Circular CSSF 21/788 introduces a new AML/CFT external report to be prepared by the approved statutory auditor (réviseur d’entreprises agréé), as referred to in Article 49 of the CSSF Regulation 12-02 on the fight against money laundering and terrorist financing, as amended.
  
  Circular 21/788 applies to all Luxembourg IFMs as defined in CSSF Circular 18/698, including registered AIFMs, and all Luxembourg investment funds supervised by the CSSF for AML/CFT purposes, except funds which have appointed an IFM (established in Luxembourg or abroad). Thus, UCITS that have appointed a management company and AIFs that have appointed an AIFM will not be subject to the requirements of this Circular.
• Circular CSSF 21/789 introduces a new self-assessment questionnaire (“SAQ”) for all authorised IFMs, self-managed SICAV and self-managed AIFs. The approved statutory auditor (réviseur d’entreprises agréé) of the authorised IFM or Self-Managed UCI is required to review on an annual basis certain questions of the SAQ and to complete on that basis a separate report. The Circular also defines a specific regulatory framework applicable to the management letter to be issued by the approved statutory auditor.
• Circular CSSF 21/790 introduces a new SAQ for all UCITS, Part II UCIs, SIFs and SICARs. The approved statutory auditor of such regulated UCIs is required to review on an annual basis certain questions of the SAQ and to complete on that basis a separate report. The Circular also defines a specific regulatory framework applicable to the management letter to be issued by the approved statutory auditor.

The completion and filing of the reports mentioned above (SAQs, separate reports and management letters) is to be performed using the CSSF eDesk platform.

A new module “Collective Investment Sector Reporting Tool” for preparing and filing with the CSSF the reports foreseen in Circulars CSSF 21/789 and 21/788 is already available on the CSSF eDesk platform.

The reports and the type of information to be communicated to the CSSF in case the approved statutory auditor issues a modified audit opinion for a regulated UCI, as foreseen in Circular CSSF 21/790 which will become applicable as of the financial years ending 30 June 2022, are expected to be available respectively, on the CSSF eDesk platform and the CSSF website, by 31 March 2022 at the latest.