Country Manual Asset Management
Luxembourg
BRP has updated its Country Manual Asset Management for
Luxembourg
| Source of changes | Answers |
|---|---|
| Law / Regulation | No |
| New Position of the Authorities | No |
| Evolution of Expert’s Interpretation | Yes |
Definition & Concepts, Regulatory Overview and Behaviour Template
Material changes
The changes/modifications are as follows:
Performing road shows by a foreign (non-licensed) investment firm is not permitted in Luxembourg (at target) as it is deemed to be marketing/promotion of investment services subject to licensing. Accordingly, the Country Manual Asset Management Behaviour Template (CM AM BT) now provides the answer “NO” in the relevant onshore scenario.
The concept of “reverse solicitation” is formally recognized in Luxembourg and activities based on a reverse solicitation or responding to an RFP are permitted (without restriction). The CM AM BT therefore now provides the answer “YES” in all scenarios.
It is highlighted that the marketing of registered/passported funds is permitted in/into Luxembourg (at target/remote), provided that the activity does not amount to a licensable investment service (or on a cross-border basis in accordance with the National Third-Country Regime). Consequently, the CM AM BT provides the answer “Grey zone/YES – Permitted, provided that the activity does not amount to an investment service” or “Grey zone/YES – Permitted, provided that the activity does not amount to an investment service (or in accordance with the National Third-Country Regime)” in the relevant scenarios.
The marketing of not registered/passported funds or structured products is only permitted in/into Luxembourg (at target/remote) in accordance with the National Private Placement Regime (NPPR) for funds or the private placement exemptions for securities, provided that the activity does also not amount to a licensable investment service. The CM AM BT therefore now provides the answer “Grey zone/YES – Permitted in accordance with the National Private Placement Regime (NPPR) / the private placement exemptions, provided that the activity does not amount to an investment service” in the relevant scenarios.
Finally, the marketing and introduction of investment services and mandates (such as discretionary mandates and advisory services) is now also permitted on a cross-border basis into Luxembourg (remote) and via/with locally licensed intermediaries/distributors in accordance with the National Third-Country Regime.
Non-material changes
Some comments and content have been slightly reworded in the CM, without introducing substantive changes to reflect the regulatory situation/current interpretation of the regulatory framework more accurately.
For more information, please contact us: info@brpsa.com
Geneva, February 25th, 2025