Last Updated on June 10, 2025 by Arnaud Collignon
The CSSF Issues New FAQ on Circular CSSF 24/856
The Commission de Surveillance du Secteur Financier (CSSF) recently published an updated FAQ concerning Circular CSSF 24/856, which addresses the protection of investors in the event of NAV (Net Asset Value) calculation errors and other instances of non-compliance with investment rules. This new guidance aims to enhance clarity and ensure that investors are adequately protected under various scenarios.
Key Takeaways from the FAQ
- Investor Protection: The new FAQ emphasizes the importance of safeguarding investors from potential losses caused by NAV calculation errors.
- Clarification of Responsibilities: It delineates the responsibilities of investment fund managers in ensuring accurate NAV calculations.
- Compliance Framework: The document outlines the compliance framework that fund managers must adhere to, ensuring transparency and accountability.
- Procedures for Error Resolution: It provides guidance on the procedures that should be followed in case of NAV calculation errors, enabling swift corrective action.
Key Recommendations for Investment Fund Managers
Investment fund managers are encouraged to:
- Implement robust internal controls to minimize the risk of NAV calculation errors.
- Regularly review compliance with investment rules and ensure that all procedures are documented.
- Communicate transparently with investors regarding any errors and the steps taken to resolve them.
Conclusion
This updated FAQ is a significant step towards enhancing investor confidence and ensuring that investment fund managers are well-equipped to handle potential discrepancies in NAV calculations. By adhering to the guidelines set forth in Circular CSSF 24/856, fund managers can foster a more secure and transparent investment environment.
