Luxembourg, May 28, 2014

To all Luxembourg collective investment undertakings To all risk capital investment companies (SICAR)

BCL CIRCULAR 2014/237

CSSF CIRCULAR 14/588

Modification of the statistical data collection for monetary and non-monetary investment funds

Ladies and Gentlemen,

The Governing Council of the European Central Bank (ECB) has adopted ECB Regulations 2013/38 on statistics on the assets and liabilities of investment funds, 2013/33 concerning the balance sheet of the monetary financial institutions sector, and 2012/24 concerning statistics on securities holdings, as well as ECB Guidelines 2013/24 on statistical reporting obligations established by the European Central Bank for quarterly financial accounts, and 2011/23, as amended, on statistical reporting obligations established by the European Central Bank for external statistics.

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The new regulations and guidelines are the result of the implementation of Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union (ESA 2010).

The current collection system was established with the aim of limiting the overall reporting burden on Luxembourg investment funds. Within this framework, the Commission de Surveillance du Secteur Financier (CSSF) and the Banque centrale du Luxembourg (BCL) cooperate fully and use, to the extent possible, all collected data for statistical and prudential purposes in the exercise of prudential supervision and statistical compilation. This cooperation led to the joint circular BCL 2013/231 – CSSF 13/564 concerning data collection from monetary and non-monetary collective investment undertakings.

Based on the aforementioned ECB regulations and guidelines, the BCL, in agreement with the CSSF, has modified this collection system for investment funds, the main changes of which are presented in this circular.

1 Objectives

Based on the aforementioned ECB guidelines and regulations, the BCL has redefined its collection system to meet the following objectives:

• complete coverage of the foreseeable requirements of the European Central Bank regarding monetary and financial statistics
• minimization of the workload for reporting institutions
• consistency with data collected for prudential supervision purposes
• compatibility with the ESA 2010 standard (European System of National and Regional Accounts 2010)
• coverage of financial stability and prudential supervision needs

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2 Main Modifications

Compared to the existing statistical collection system, the modifications consist of new versions of the current reports and an extension of the population subject to statistical reporting.

The main modifications to the reports, detailed in the instructions, are as follows:

• the codification of items and initial deadlines is modified to harmonize these codifications with those applicable to other Luxembourg financial entities,
• the list of economic sectors and the list of instrument types are modified in accordance with ESA 2010,
• in the monthly and quarterly balance sheets, a detailed breakdown by economic sector is required for financial derivative instruments, as well as a breakdown by country for other assets and other liabilities other than accrued interest not yet due.

Risk capital investment companies are added to the population subject to reporting. Thus, the term "investment funds" encompasses the following entities:

• collective investment undertakings (UCIs) governed by the law of December 17, 2010,
• specialized investment funds (SIFs) governed by the law of February 13, 2007,
• risk capital investment companies (SICARs) governed by the law of June 15, 2004.

Investment funds are subject to the following reporting:

• all compartments of monetary investment funds are invited to submit reports S 1.3 and TPT for the reference period of December 2014 at the latest by January 15, 2015.
• all compartments of non-monetary investment funds are invited to submit reports S 1.6, S 2.13, and TPT for the reference period of December 2014 at the latest by January 30, 2015.

In this context, it should be noted that the submission of report S 1.6 is mandatory only when the amounts of non-financial asset items or financial derivative instruments represent more than 5% of the total balance sheet.

3 Monetary Investment Funds

ECB Regulation 2013/33, concerning the balance sheet of the monetary financial institutions sector, defines the term monetary UCI (referred to as monetary investment fund in this circular). This definition aligns with the guidelines concerning a common definition of monetary investment funds at the European level, published on May 19, 2010, by the European Committee of Securities Market Regulators (CESR), the predecessor of the European Securities and Markets Authority (ESMA). This definition has been applied by the BCL since January 31, 2012.

The CSSF is responsible for establishing the list of monetary investment funds or compartments of monetary investment funds that are included in the list of monetary financial institutions (MFIs). Subsequently, the CSSF informs the BCL, which can then transmit the list of Luxembourg monetary financial institutions to the ECB. The latter ensures the publication of the list of Luxembourg MFIs, together with the lists established by other EU countries.

4 Non-Monetary Investment Funds

The population of non-monetary investment funds covers all investment funds that are not included in the official list of monetary investment funds.

Non-monetary investment funds are divided into the following sub-categories based on their main investment policy:

• equity investment funds
• bond investment funds
• real estate investment funds
• mixed investment funds
• other investment funds
• alternative investment funds (Hedge funds)

The BCL receives identifying information from the CSSF on all investment funds and investment fund compartments, and can thus transmit the list of non-monetary investment funds to the ECB. The ECB, for its part, is responsible for publishing the list of Luxembourg non-monetary investment funds, together with the lists of other EU countries.

5 BCL Statistical Reporting

ECB Regulation 2013/33 concerning the consolidated balance sheet of the monetary financial institutions sector defines, on the one hand, the term monetary UCI (referred to in ESA 2010 and in this circular as "monetary investment funds") and, on the other hand, the information requests addressed to monetary investment funds.

ECB Regulation 2013/38 on statistics on the assets and liabilities of investment funds, for its part, defines the information requests addressed to non-monetary investment funds.

For the application of these regulations, the statistical reporting that investment fund compartments must periodically submit to the BCL includes the following reports:

• monetary investment funds
  • S 1.3 "Monthly statistical balance sheet of monetary investment funds"
  • Monthly security-by-security report of investment funds
• non-monetary investment funds
  • S 1.6 "Information on valuation effects on the balance sheet of non-monetary investment funds"
  • Monthly security-by-security report of investment funds
  • S 2.13 "Quarterly statistical balance sheet of non-monetary investment funds"

Finally, it should be noted that all instructions for the preparation of statistical reporting are published and can be downloaded from the BCL website via the "Regulatory Reporting" menu.

6 Use of Collected Data

The statistical data collection addressed to all investment funds or investment fund compartments is primarily for statistical purposes and is based mainly on the requirements set out in the aforementioned ECB regulations. However, in order to limit the workload for reporters and to avoid multiple collections, this data may be used for other purposes provided for under the organic law of the BCL.

Consequently, the individual data collected fall under the professional secrecy of the organs and agents of the Central Bank, defined by Article 33 of the organic law of the BCL. It is important to mention that this article allows the Central Bank to exchange information with the Commission de Surveillance du Secteur Financier, the Commission de Surveillance du Secteur de l'Assurance, and the Central Service for Statistics and Economic Studies (STATEC) to the extent necessary for the fulfillment of its missions.

# BANQUE CENTRALE DU LUXEMBOURG
EUROSYSTEM
# CSSF
Commission de Surveillance du Secteur Financier

## 7 Quality of Transmitted Data

We wish to emphasize the importance of the quality of data transmitted to the BCL and the necessity of subjecting data to detailed verification rules in the technical documentation prior to transmission. Only rigorous control performed at the time of data production can meet both quality requirements and imposed deadlines. This point is all the more important because the data collected and transmitted in aggregated form to the ECB are controlled by the ECB services before being aggregated with data from other Member States. Furthermore, the BCL publishes detailed statistics on its website that must present a high level of quality to meet user needs. Any significant error or negligence has damaging repercussions on the reputation of the Luxembourg financial center.

## 8 Compliance with Reporting Deadlines

The BCL establishes and publishes on its website a table listing the deadlines for submitting monthly and quarterly statistical reports.

It is recalled that the BCL must transmit to the European Central Bank the monthly statistics of monetary investment funds within 15 working days and the monthly statistics of non-monetary investment funds within 28 working days following the period to which they relate. It is therefore essential that reporters strictly respect the delivery deadlines so that the BCL can meet its commitments within the European System of Central Banks (ESCB).

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# BANQUE CENTRALE DU LUXEMBOURG
EUROSYSTEM
# CSSF
Commission de Surveillance du Secteur Financier

## 9 Repeal

This circular replaces and repeals with effect from January 1, 2015 the circular:

- BCL 2013/231 CSSF 13/564 "Modification of the statistical data collection for monetary and non-monetary UCIs"

Please accept, Ladies and Gentlemen, the assurance of our most distinguished sentiments.

**BANQUE CENTRALE DU LUXEMBOURG**

Pierre Beck
Director

Serge Kolb
Director

Gaston Reinesch
General Director

**COMMISSION DE SURVEILLANCE DU SECTEUR FINANCIER**

Claude Simon
Director

Simone Delcourt
Director

Andrée Billon
Director

Jean Guill
General Director