CSSF's head office at Rue d'Arlon in Luxembourg. Photo: Raymond Frenken.
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Luxembourg alternative investment fund manager FundRock, part of the Apex Group, has been given a fine of 45,800 euro by Luxembourg’s financial regulator CSSF because the firm did not properly apply the rules relating to benchmarks.

The fine, imposed on 30 November last year, related to regulations on the use of  indices as benchmarks to measure the performance of investment funds. As a result of an on-site inspection carried out by the CSSF, the supervisor identified “some failures” to comply with the applicable provisions. CSSF specifically referred to the need for “robust written contingency plans and the implementation of adequate prospectus disclosures”.

A spokesperson for Apex, FundRock’s parent company, said the fine arose following standard site inspections in 2020 and “relates to delays in implementing certain aspects of the Benchmark Regulation”. 

“As the largest service provider in Luxembourg, Apex Group takes seriously its commitment to upholding the highest of risk, compliance and governance standards across all our business subsidiaries, in addition to maintaining strong relationships with our regulators,” the spokesperson said.

In determining the amount of the administrative fine, the CSSF has taken into consideration the remedial actions already undertaken in order to address the deficiencies identified.

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