On 24th November 2020, the Commission de Surveillance du Secteur Financier (CSSF) published an updated FAQ concerning
- Luxembourg Law of 17 December 2010 relating to undertakings for collective investment; and
- Luxembourg Law of 12 July 2013 on alternative investment fund managers.
Updated FAQ – Collective Investment and Alternative Investment Fund Managers:
Q: What are the conditions to comply with in case of data transfer by a central administration or a depositary to another service provider?
A: Pursuant to Article 41 (2a) of the amended Law of 5 April 1993 on the financial sector, in case a central administration agent or a depositary (a credit institution, an investment firm or a professional of the financial sector) is outsourcing services implying a transfer of relevant information to a third party, the central administration agent or the depositary must ensure that its client, the Board of Directors (“BoD”) of the SICAV or of the IFM for common funds, has accepted the outsourcing of the relevant outsourced services, the type of information transmitted in the context of the outsourcing and the country of establishment of the entities that provide the outsourced services.
Any transfer of information related to investors should be disclosed prior to the transfer, by the UCI, respectively the IFM for common funds, to investors through appropriate means, namely the prospectus and the application form combined, if appropriate, with a reference to a website. Existing investors should be informed by the UCI, respectively the IFM for common funds, prior to the transfer of their information, about any update of the fund documents aiming at the aforesaid disclosure by means of a letter, email or any other means of communication provided for by the prospectus.
Due to transparency and confidentiality requirements, the same conditions apply to UCI/IFM acting as central administration.
The aforesaid requirements apply independently from the General Data Protection Regulation (EU) 2016/679, if applicable.