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LUXEMBOURG New CSSF form “Application questionnaire to set up a UCITS” Background The electronic “Application questionnaire for the setup of an undertaking for collective investment” is the current CSSF form for the submission of an application for the approval of a new UCI (including UCITS, Part II UCIs and SIFs). On 1 September 2014, the CSSF replaced the ex- isting form (for UCITS only) with the new “Applica- tion questionnaire to set up a UCITS”. What’s in there? The new application questionnaire is to be found on the website of the CSSF and will replace the current application form only as regards UCITS as from 1 September 2014. It must be noted that for all UCIs other than UCITS the current forms and procedures will remain the same. The format of the new questionnaire is an Excel spreadsheet with different tabs (1-12) for each topic to be analyzed by the CSSF during the exam- ination phase. The last tab (“Documents”) lists the documents to be submitted per tab (Appendices 1-12) together with the nomenclature to be used for each document as well as for the application email itself. The new questionnaire is exclusively available in English. The procedure for the submission of electronic ap- plication files will remain unchanged: (1) email to setup.uci@cssf.lu; and (2) e-file. Finally, the CSSF encourages the submission of complete application files with definitive informa- tion for the avoidance of delays in the approval process.

Presidency compromise text on the Regulation on indices used as benchmarks in financial instruments and financial contracts Background On 18 September 2013, the European Commis- sion published a legislative proposal which seeks to introduce a common framework to ensure the accuracy and integrity of indices used as bench- marks in financial instruments and financial con- tracts in the Union. The aim of the Regulation is to restore the confidence in benchmarks following the LIBOR and EURIBOR scandals of 2012. Bench- mark manipulation can cause significant losses to consumers and investors, distort the real economy and undermine market confidence. The proposal has four main objectives that aim to improve the framework under which benchmarks are provided, contributed to and used: 1) improve the governance and controls over the benchmark process and in particular ensure that administrators avoid conflicts of interest, or at least manage them adequately; 2) improve the quality of the input data and meth- odologies used by benchmark administrators and in particular ensure that sufficient and accurate data is used in the determination of benchmarks; 3) ensure that contributors to benchmarks are subject to adequate controls, in particular to

avoid conflicts of interest, and that their contri- butions to benchmarks are subject to adequate controls; and 4) ensure adequate protection for consumers and investors using benchmarks by enhancing transparency, ensuring adequate rights of re- dress and ensuring that suitability is assessed where necessary. What’s in there? Main provisions of the draft Regulation: 1) Benchmark providers will be regulated and su- pervised, as will contributors who are already regulated (e.g. as financial institutions); 2) Conflicts of interest will have to be managed; 3) The providers of benchmarks and contributors to benchmarks will need to ensure appropri- ate governance and controls over the bench- mark-setting process; 4) Methodologies will need to be transparent and robust and ensure the use of sufficient, accu- rate and representative underlying data; 5) Improved transparency of the benchmark-set- ting process; and 6 Suitability of assessments of benchmarks for retail contracts. On 9 September 2014, the Council of the Europe- an Union (“the Council”) published a Presidency compromise text containing amendments to the Commission's original proposal. Amongst others, the Council proposes the inclusion of the measure- ment of investment fund performance within the scope of the Regulation. The Commission proposal and the changes pro- posed in the Presidency Compromise text were discussed at a Council meeting on 17-18 Septem- ber 2014.

THE PRESIDENCY COMPROMISE TEXT IS AVAILABLE HERE.

The new questionnaire is immediately applicable (as from 1 September 2014).

However, any request currently in preparation us- ing the previous application form was accepted during a transitional period ending on 30 Septem- ber 2014. After this date, using the new applica- tion form will be mandatory.

THE NEW “APPLICATION QUESTIONNAIRE TO SET UP A UCITS” IS AVAILABLE HERE.

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