Last Updated on June 3, 2025 by Arnaud Collignon
Update on the CSSF FAQ Regarding Portfolio Transparency for Actively Managed ETFs
The Commission de Surveillance du Secteur Financier (CSSF) has recently updated its FAQ to clarify aspects of the Luxembourg Law of 17 December 2010 concerning portfolio transparency for actively managed Exchange-Traded Funds (ETFs). This update is significant for asset managers and investors alike, as it aims to enhance understanding and compliance with transparency requirements.
Key Clarifications from the CSSF Update
- Portfolio Transparency Requirements: The CSSF emphasizes the necessity for actively managed ETFs to provide clear and comprehensive information about their portfolios.
- Disclosure Obligations: Asset managers are required to disclose their investment strategies, including the criteria for selecting investments and the risks involved.
- Frequency of Reporting: The frequency of portfolio disclosures must be aligned with the fund’s investment strategy and the expectations of investors.
- Impact on Investors: These clarifications aim to empower investors with better insights into the management of their investments, fostering informed decision-making.
Importance of Compliance
Adhering to these updated guidelines is crucial for asset managers to maintain regulatory compliance and build trust with investors. By ensuring transparency, actively managed ETFs can enhance their appeal in a competitive market.
Next Steps for Asset Managers
Asset managers should review the updated FAQ and assess their current practices to ensure alignment with the CSSF’s expectations. This may involve:
- Updating disclosure documents to reflect the latest requirements.
- Enhancing communication strategies with investors regarding portfolio management.
- Training staff on compliance and transparency best practices.
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