Update of the CSSF FAQ concerning the Luxembourg Law of 17 December 2010 with regard to the portfolio transparency requirements for UCITS ETFs and the holding of ancillary liquid assets

The CSSF has published today an update of its FAQ concerning the Luxembourg Law of 17 December 2010 relating to undertakings for collective investment.

With a view to promote supervisory convergence at European level, this update modifies question 12.1 providing specific guidance on the portfolio transparency requirements for UCITS ETFs. Firstly, it clarifies that the guidance applies to all UCITS ETFs and not only to actively managed UCITS ETFs. Secondly, it clarifies that, besides the information that market makers and authorised participants receive typically on a daily basis on portfolio holdings to ensure an efficient arbitrage mechanism and an active secondary market for ETFs, IFMs have to publish, going forward, the detailed portfolio holdings to all investors at least on a quarterly basis (instead of the monthly frequency applicable so far) with a maximum time lag of 30 business days.

This update also modifies question 1.14 specifying the conditions under which a UCITS may hold ancillary liquid assets. The CSSF clarifies that, for the sole purpose of processing subscriptions or redemptions, UCITS may also hold e-money tokens as defined in Article 3(1)(7) of MiCAR. Such e-money tokens shall be converted to bank deposits at sight or invested in eligible assets as soon as practicable.