LUXEMBOURG: CSSF Updates FAQs on Swing Pricing Mechanism

Tuesday August 17 2021

On 17^th August 2021, the CSSF updated the FAQs on swing pricing mechanism. The following question have been added:

Q1. Can UCIs (UCITS, UCI Part II & SIFs) increase the swing factor to be applied on the NAV up to the maximum level laid down in the prospectus without prior notification to the CSSF?

Q2. Can UCIs increase the applied swing factor beyond the maximum swing factor laid down in the fund prospectus in the following situations:

• where the fund prospectus formally offers the possibility to the Board of Directors of the UCI or, if applicable, the Management Company to go beyond the maximum level under certain predefined conditions?
• where the fund prospectus does not offer the possibility to the Board of Directors of the UCI or, if applicable, the Management Company to go beyond the maximum level laid down in the prospectus?

Q3. Where the fund prospectus formally offers the possibility to the Board of Directors of the UCI or, if applicable, the Management Company to go beyond the maximum swing factor laid down in the prospectus, to what extent can a UCI increase the applied swing factor beyond the maximum swing factor disclosed in the fund prospectus?

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