Last Updated on June 3, 2025 by Arnaud Collignon
Model Prospectus for Sub-Funds: Specific Guidance
The Commission de Surveillance du Secteur Financier (CSSF) provides essential guidelines for the preparation of a model prospectus for sub-funds. This document serves as a crucial resource for investment fund managers and stakeholders, ensuring compliance with regulatory standards while promoting transparency and investor protection.
Key Objectives of the Model Prospectus
- To facilitate the creation of clear and comprehensive prospectuses for sub-funds.
- To ensure that all necessary information is disclosed to potential investors.
- To enhance the overall quality and consistency of fund documentation.
Essential Components of the Prospectus
When drafting a prospectus for a sub-fund, it is important to include the following sections:
- Investment Objectives and Policy: Clearly outline the investment strategy and goals of the sub-fund.
- Risk Factors: Provide a detailed analysis of potential risks associated with the investment.
- Fees and Expenses: Disclose all relevant costs that investors may incur.
- Performance History: Include past performance data, if applicable.
- Management Information: Detail the management team and their qualifications.
Compliance and Best Practices
It is crucial for fund managers to adhere to the CSSF’s guidelines to ensure compliance. Here are some best practices:
- Regularly update the prospectus to reflect any changes in investment strategy or regulatory requirements.
- Engage legal and compliance experts to review the document before publication.
- Utilize the CSSF’s model prospectus as a template to ensure all necessary information is included.
Conclusion
By following the CSSF’s guidance on the model prospectus for sub-funds, investment managers can enhance transparency and build trust with investors. This proactive approach not only meets regulatory requirements but also fosters a positive investment environment.
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