Ahead of the end of the transition period, the Luxembourg regulator, the CSSF, has helpfully issued a press release reconfirming the impact Brexit will have for UK firms managing or providing portfolio management to Luxembourg AIFs or marketing an AIF into Luxembourg. 

The three headline confirmations 

  1. Marketing into Luxembourg: to continue marketing an AIF into Luxembourg post-Brexit, the UK AIFM needs to submit a National Private Placement Regime (NPPR) notification to the CSSF. The CSSF has confirmed this will be treated as automatically de-notifying them of any marketing the AIFM was carrying out for that AIF under the AIFMD passport. This helpfully avoids having to also submit a de-notification notice via the FCA.
  1. Management by a UK AIFM of a Luxembourg AIF: a UK AIFM can continue to manage Luxembourg AIFs provided it complies with the necessary consent and notification requirements previously set out by the CSSF. The deadline for compliance has been extended to 31 December 2020.
  1. Delegation of portfolio management and/or risk management to a UK firm: delegation of portfolio management and/or risk management activities to a UK firm can continue without any further action on the part of the UK firm.