CSSF seen drafting EU best practice for handling NAV errors 
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Luxembourg’s financial supervisor CSSF has said it will start collecting information from firms on their anti money laundering and terrorism financing setups from next Wednesday, 15 February, through its annual industry-wide survey. 

Firms will have until 31 March to report to the CSSF by filling out an online questionnaire. Responding to this survey is mandatory for firms supervised by the CSSF. The supervisor aims to collect standardised key information concerning AML risks to which firms under CSSF supervision are exposed and about the implementation of measures to mitigate these risks. 

CSSF said this cross-sector survey contributes to the CSSF’s ongoing assessment of ML/TF risks present in the financial sectors under its supervision and forms part of the AML/CFT risk-based supervision approach put in place by the CSSF.

The 2022 survey remains mostly unchanged compared to the previous year, the supervisor said. 

SFDR data collected until 2 March

Separately, CSSF has announced a data collection exercise among investment fund managers relating to the Sustainable Finance  Disclosure Regulation, or SFDR. The supervisor said this effort will  mainly focus on the collection of information regarding organisational arrangements of fund managers.

CSSF expects that managers  of Ucits funds and AIFMs are organised in such a way that  they  “take due account of the integration of sustainability risks”, notably in terms of human resources and governance, the investment decision or advice process, the remuneration and risk management policies and the management of conflicts of interest.

It said that this data collection is necessary to allow the CSSF to fulfill its supervisory duties.  Like with AML, it uses an online survey form. The deadline for submission of the questionnaire is 2 March.

CSSF said it data collection “in the near future” will be extended to collect information provided in statements on Principle Adverse Impact, or PAI, of funds. It also has reminded the industry that a Common Supervisory Action, or CSA, exercise relation to sustainability risks and disclosures is currently under discussion at the ESMA level of European supervisors. This CSA is contemplated to start in the course of 2023 

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