Clifford Chance

Update of CSSF FAQs on swing pricing mechanism used by Luxembourg regulated funds in the context of Coronavirus

10 April 2020

On 7 April 2020, the Luxembourg financial sector supervisory authority ("CSSF") published an update of its FAQs on the swing pricing mechanism (as initially published in July 2019 and amended on 20 March 2020) in relation to the application and use of the swing pricing and dilution levy mechanisms by Luxembourg regulated UCITS, Part II UCIs and SIFs (together "UCIs") further to the questions received from industry participants in the context of the financial market developments around COVID-19. This last update includes CSSF's clarifications in terms of investors information in case of increase of the swing factor/dilution levy by UCIs beyond the maximum level laid down in the prospectus.

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