BCL Circular 2018/241 of 18 May 2018 — Introduction of Statistical Data Collection for Unregulated Alternative Investment Funds

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Luxembourg, 18 May 2018
To all unregulated alternative investment funds

BCL CIRCULAR 2018/241
Introduction of Statistical Data Collection for Unregulated Alternative Investment Funds

Madam, Sir,

This circular is intended to inform unregulated alternative investment funds of their reporting obligations under Regulation ECB/2013/38 on statistics on the assets and liabilities of investment funds, as well as those arising from the ECB Guideline on monetary and financial statistics (ECB/2014/15).

The joint circular BCL 2014/237, CSSF 14/588, addresses all regulated investment funds, that is to say, those that must be authorized by the CSSF. However, Regulation ECB/2013/38 also addresses unregulated alternative investment funds. Thus, due to the recent development of these funds, the collection of information from them has become necessary to ensure coverage of all investment funds within the meaning of the aforementioned ECB Regulation.

The population of unregulated alternative investment funds is identified, on the one hand, by the CSSF as part of the information collection from managers of alternative investment funds whose managers are residents of Luxembourg, and, on the other hand, partially identified in the lists published by the European Securities and Markets Authority (ESMA).

Under ECB Guideline ECB/2014/15, the BCL provides the ECB with a list of investment funds with certain reference characteristics. To complete this list with information concerning unregulated alternative investment funds, a form must be completed by each of these funds and transmitted to the BCL. This transmission must be accompanied by the latest available balance sheet.

In order to minimize the workload for declarants, the BCL management has favored a collection similar to that existing for regulated investment funds as well as the application of a collection threshold (see point 1.3).

1 Statistical data collection

1.1 Identifying data

In order to complete the identifying information for unregulated alternative investment funds, these funds must provide the additional information requested by the BCL within one week from the date of their access to activity, whether or not they expect to be subject to the statistical reporting obligation.

1.2 BCL statistical reporting

Regulation ECB/2013/38 on statistics on the assets and liabilities of investment funds defines the information requests addressed to non-monetary investment funds and unregulated alternative investment funds.

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

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

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

1.3 Exemptions

Regulation ECB/2013/38 on statistics on the assets and liabilities of investment funds, including unregulated alternative investment funds, provides for the possibility of exempting small-sized declarants from reporting.

The BCL may exempt unregulated alternative investment funds from monthly and quarterly reporting when the total amount of assets of an unregulated alternative investment fund is below a given threshold. In the case of funds composed of compartments, the total amount of assets taken into consideration includes the total assets of all compartments.

This threshold is initially set at 500 million euros. The BCL will adapt it if necessary by way of circular letter.

Unregulated alternative investment funds benefiting from an exemption must transmit their annual balance sheet to the BCL within 15 days after the certification of the annual accounts.

2 Use of collected data

The statistical data collection addressing all investment funds or investment fund compartments is primarily intended 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 declarants 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 falls under the professional secrecy of the bodies 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 (CSSF), the Commission de Surveillance du Secteur des Assurances (CAA), and the Service Central de la Statistique et des Études Économiques (STATEC) to the extent necessary for the fulfillment of their missions.

3 Data quality and compliance with deadlines

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

ECB Decision ECB/2015/50 of 18 December 2015 amending Decision ECB/2010/10 on non-compliance with statistical reporting obligations is applicable to the statistical data on investment funds collected by the Central Bank of Luxembourg.

The European Central Bank and the Central Bank of Luxembourg monitor compliance by reporting agents subject to the minimum standards required to satisfy their reporting obligations. This monitoring is established based on feeding a database containing the various infractions noted during the production month in accordance with the minimum statistical reporting standards.

Sanctions may be imposed by the European Central Bank following an infringement procedure in case of non-compliance with the minimum standards of transmission, accuracy, and conformity with respect to concepts.

4 Implementation of the new collection

The implementation of the new collection takes place in two steps:

1. The transmission of the completed form concerning identifying data, available on the BCL website, and the latest available balance sheet by email to reporting.opc@bcl.lu before 31 May 2018.
2. For funds not exempted by the BCL, the quarterly report S 2.13 "Quarterly statistical balance sheet of investment funds" and the monthly security-by-security report for the reference period of September 2018 are to be submitted no later than 26 October 2018.

The monthly report S 1.6 "Information on valuation effects on the balance sheet of investment funds" for the reference period of October 2018 is to be submitted, if applicable, no later than 29 November 2018.

For any information concerning the application of this circular, please contact directly the Economic and Financial Statistics Section (email: reporting.opc@bcl.lu).

Please accept, Madams, Sirs, the assurance of our perfect consideration.

CENTRAL BANK OF LUXEMBOURG
The Management

Roland Weyland Pierre Beck Gaston Reinesch
General Director