CIRCULAR BCL 2013/231

CIRCULAR CSSF 13/564

Modification of the statistical collection from money market funds and non-money market funds

Luxembourg, 28 March 2013

To all Luxembourg collective investment undertakings

Dear Sirs, Madams,

Within the framework of ECB Regulations 2007/8 concerning the collection of statistical information on the assets and liabilities of investment funds and 2008/32, as amended, concerning the consolidated balance sheet of the monetary financial institutions sector, as well as ECB Guideline 2002/7, as amended, regarding statistical reporting obligations established by the European Central Bank (ECB) for quarterly financial accounts and ECB Regulation 2004/15, as amended, concerning the balance of payments and the global external position, the Central Bank of Luxembourg (BCL) has established a collection system for money market and non-money market collective investment undertakings.

This collection system, which also serves to comply with ECB Regulation 2012/24 concerning statistics on securities holdings, was implemented with the aim of limiting the overall reporting burden on Luxembourgish collective investment undertakings (CIUs) and CIU compartments. Thus, the Luxembourgish authorities – namely the Central Bank of Luxembourg and the Commission for the Supervision of the Financial Sector (CSSF) – cooperate fully and use, to the extent possible, all collected data for both statistical and prudential purposes.

The ECB regulations provide exemptions regarding the information collected for small-sized CIU compartments. Consequently, the Luxembourgish authorities do not have detailed information on assets and liabilities necessary for the exercise of macro and micro-prudential supervision for a certain number of CIU compartments. However, for the purposes of financial stability analysis and prudential supervision, the BCL and the CSSF require information from all reporting entities.

Thus, taking into account the aforementioned developments, the BCL has decided to modify its statistical collection system to take into account the needs arising from macro and micro-prudential supervision, including the conduct of stress tests.

---

1 Objectives

Based on the aforementioned guidelines and regulations of the European Central Bank, the BCL has redefined its collection system to meet the following objectives:

• complete coverage of the foreseeable requirements of the ECB regarding monetary and financial statistics;
• minimization of the workload for reporting institutions;
• consistency with data collected for prudential supervision purposes;
• compatibility with the ESA95 standard (European System of Accounts 1995).

To these objectives is added the use of collected data for the needs of financial stability and prudential supervision.

---

2 Modification

Compared to the current statistical collection system, the modification consists of the repeal of exemptions, namely:

• the repeal of derogations currently granted to small-sized non-money market CIU compartments for reports S 1.6 "Impact of valuation effects on the balance sheet of non-money market CIUs", S 2.13 "Quarterly statistical balance sheet of CIUs" as well as the Title-by-Title (TPT) report;
• the repeal of derogations currently granted to small-sized money market CIU compartments for report S 1.3 "Monthly statistical balance sheet of money market CIUs" and the Title-by-Title (TPT) report.

Thus, the exemptions provided for by Circulars BCL 2007/211 and 2009/227, and confirmed by various letters from the BCL (the last of which is dated 2 October 2012, ref.: ST.12-0652), under which certain CIU compartments received a derogation for the submission of statistical reports, are revoked as of the reference period of June 2013.

It follows that:

• all money market CIU compartments are invited to submit reports S 1.3 and TPT for the reference period of June 2013 at the latest by 12 July 2013;
• all non-money market CIU compartments are invited to submit reports S 2.13 and TPT for the reference period of June 2013 at the latest by 26 July 2013 and report S 1.6 starting from the reference period of July 2013.

In this context, it is understood that the transmission of report S 1.6 is only mandatory when the amounts of the fixed asset items or financial derivative instruments represent more than 5% of the sum of the balance sheet.

---

3 Money Market CIUs

ECB Regulation 2011/12 amending ECB Regulation 2008/32 concerning the balance sheet of the monetary financial institutions sector has adjusted the definition of money market CIUs to align with the guidelines concerning a common definition of money market CIUs at the European level, published on 19 May 2010 by the European Committee of Securities Regulators (CESR), the predecessor of the European Securities and Markets Authority. This definition has been applied by the BCL since 31 January 2012.

The CSSF is responsible for drawing up the list of money market CIUs or CIU compartments that are or will be included in the list of monetary financial institutions (MFIs). Subsequently, the CSSF informs the BCL, which can thus transmit the list of Luxembourgish monetary financial institutions to the ECB. The latter ensures the publication of the list of Luxembourgish MFIs, together with the lists established by other EU countries.

4 Non-Money Market CIUs

The population of non-money market CIUs covers all CIUs that are not included in the official list of money market CIUs, regardless of whether they are governed by the law of 17 December 2010 or that of 13 February 2007.

Non-money market CIUs are divided into the following sub-categories based on their main investment policy:

• Equity CIUs;
• Bond CIUs;
• Real Estate CIUs;
• Mixed CIUs;
• Other CIUs;
• Alternative CIUs (Hedge funds).

The BCL receives identifying information from the CSSF on all CIUs and CIU compartments and can thus transmit the list of non-money market CIUs (investment funds) to the ECB. The ECB, for its part, is responsible for publishing the list of Luxembourgish investment funds, together with the lists of other EU countries.

---

5 BCL Statistical Reporting

ECB Regulation 2008/32 concerning the consolidated balance sheet of the monetary financial institutions sector, as amended by ECB Regulation 2011/12, defines on the one hand the notion of money market CIU and on the other hand the information requests addressed to money market CIUs.

ECB Regulation 2007/8 concerning the assets and liabilities of investment funds, for its part, defines the information requests addressed to non-money market CIUs.

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

• Money Market CIUs:
  • S 1.3 "Monthly statistical balance sheet of money market CIUs";
  • Monthly Title-by-Title report of collective investment undertakings.
• Non-Money Market CIUs:
  • S 1.6 "Impact of valuation effects on the balance sheet of non-money market CIUs";
  • Monthly Title-by-Title report of collective investment undertakings;
  • S 2.13 "Quarterly statistical balance sheet of CIUs".

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 CIUs or CIU 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 individually collected data 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 for the Supervision of the Financial Sector, the Commission of Supervision of the Insurance Sector, and the Central Service for Statistics and Economic Studies (STATEC) to the extent necessary for the fulfillment of its missions.

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 contained 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 thus 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 which 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 Submission Deadlines

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

It is recalled that the BCL must transmit to the European Central Bank the monthly statistics of money market CIUs within a period of 15 working days and the monthly statistics of non-money market CIUs within a period of 28 working days following the period to which they relate. It is therefore indispensable that reporters strictly respect the delivery deadlines so that the BCL can meet its commitments within the European System of Central Banks.

# 9 Repeals

This circular replaces and repeals with effect from 15 March 2013 the following circulars:

- BCL 2007/211 "New statistical collection from non-money market CIUs - Modification of statistical collection from money market CIUs";
- BCL 2009/227 "Modification of statistical collection from money market CIUs"; as well as the circular letter ST.12-0652 "Update of thresholds from which CIUs / CIU compartments must submit statistical reporting to the BCL".

Please accept, Sirs, Madams, the assurance of our very distinguished sentiments.

## CENTRAL BANK OF LUXEMBOURG

Pierre Beck
Director

Serge Kolb
Director

Gaston Reinesch
General Director

## COMMISSION FOR THE SUPERVISION OF THE FINANCIAL SECTOR

Claude Simon
Director

Andrée Billon
Director

Simone Delcourt
Director

Jean Guill
General Director

7 / 7