CSSF guidance on virtual assets

17 December 2022 _ Regulatory & compliance

CSSF guidance on virtual assets

Following its recent communications on financial innovation, the Commission de Surveillance du Secteur Financier (the "CSSF") has just published a very interesting guide on virtual assets with a focus on the investment fund industry.

Virtual assets, which take a multitude of different forms, have grown exponentially in recent years and have attracted a lot of interest as a potential new asset class for professionals, as well as for investors.

In a nutshell:

  • UCITS and UCIs targeting non-professional investors and pension funds cannot invest directly or indirectly in virtual assets;
  • AIFs which market their units only to professional investors and which have an authorised manager whose authorisation extends to the "Other virtual assets of the fund" strategy may invest directly and indirectly in virtual assets. 

This document consolidates into a single document all Q&As relating to the UCITS Directive previously issued by ESMA i.e. the Q&As on: 

  1. the Key Investor Information Document (KIID) for UCITS (2015/ESMA/631); 
  2. ESMA’s guidelines on ETFs and other UCITS issues (ESMA/2015/12); 
  3. Notification of UCITS and exchange of information between competent authorities (ESMA/2012/428); 
  4. Risk Measurement and Calculation of Global Exposure and Counterparty Risk for UCITS (ESMA/2013/1950).
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