30/04/2012 /

SIF Law Changes

On 26 March 2012 the Luxembourg Parliament passed a bill of Law amending the Specialised Investment Funds (SIF) Law of 13 February 2007 which entered into force on 1 April 2012.

Existing SIFs have to develop and implement a risk management process and a conflict of interest policy as from 30 June 2012. The CSSF (Commission de Surveillance du Secteur Financier) has clarified these requirements in a press release dated 20 April 2012.

What will SIFs need to comply with from the 30 June 2012?

Under the new requirements all existing SIFs have until 30 June 2012 to put in place a risk management process including a description of the risk management systems implemented to identify, measure, monitor and manage all the risks to which the SIF could be materially exposed.

The risk management process should at least include:

  • A description of the risk management function and the split of responsibilities
  • The independence of the risk management function
  • The conflict of interest measures put in place to ensure an independent risk management function
  • The procedures, processes and measures implemented to appropriately measure and manage the specific risks linked to the investment strategy and the risk profile of the fund.

In addition, the SIF has to provide the CSSF with a short description of the conflict of interest policy as well as the concrete measures put in place in order to prevent such conflicts of interest arising.

Both the risk management process and the conflict of interest policy have to be validated by the senior managers of the SIF prior to being sent to the CSSF.

How can we help?

DCG can offer bespoke solutions of risk management support to SIFs and other regulated structures and in particular:

  • You can delegate the day-to-day management and governance of your fund to our management company, which can offer you a turn-key solution to the new regulatory requirements, in preparation for the imminent implementation of AIFMD
  • We can provide you with independent risk management oversight
  • We can support you in writing the risk management process and the conflict of interest policy.

Why DCG?

DCG management and staff have proven expertise in risk management oversight combining specific knowledge of the regulated fund framework with sector specific knowledge of Real Estate and Private Equity structures, in addition to our expertise in more traditional strategies.

Contact

Daniela Klasén-Martin, Managing Director
+ 352 26 215 420 
daniela.klasen-martin@dcg.lu

Ludivine Nicolaï, Risk Manager
+ 352 26 215 426
ludivine.nicolai@dcg.lu

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