Undertakings for collective investment administration

The UCI administration activity may be split into three main functions: the registrar function, the NAV calculation and accounting function, and the client communication function.

• The registrar function encompasses all tasks necessary to the maintenance of the UCI’s unit-/shareholder register. The reception and execution of orders relating to units/shares subscriptions and redemptions, and the distribution of income (including the liquidation proceeds) are part of the registrar function;
• The NAV calculation and accounting function covers the legal and fund management accounting services and, the valuation and pricing (including tax returns); and
• The client communication function is comprised of the production and delivery of the confidential documents intended for investors.

Those functions are globally composed of, at the least, the following tasks:

• legal and fund management accounting services;
• customer inquiries;
• valuation and pricing, including tax returns;
• regulatory compliance monitoring;
• maintenance of unit-/shareholder register;
• distribution of income;
• unit/shares issue and redemptions;
• contract settlements (including certificate dispatch);
• record keeping.

A UCI or its IFM is not required to perform itself the functions relating to the UCI administration activity. It may indeed entrust the exercise of these functions (or part of) to an authorised third party established in Luxembourg (a “service provider”) for the purpose of a more efficient conduct of its business.

For transparency purposes, the UCI prospectus discloses the name of the UCI administrator.

The UCI administrator must have an adequate internal organisation (including an adequate and appropriate environment of control) and sufficient resources (e.g. human resources, technical infrastructure and IT means).

The service provider must hold the following licence:

• Credit Institution
• Specialised PFS and Support PFS:
  • Registrar agent (registrar agents are authorised to perform all 3 functions of the UCI administration activity in compliance with Article 25 of the Law of 5 April 1993 on the financial sector (“LFS”));
  • Administrative agent of the financial sector (only for the NAV calculation and accounting function and client communication function in compliance with Article 29-2 of the LFS);
  • Client communication agent (only for client communication function in compliance with Article 29-1 of the LFS).

The activity of UCI administration is subject to prior CSSF authorisation pursuant to Circular CSSF 22/811 (“UCIA Circular”).

The UCI administrator may also delegate certain critical or important tasks subject to a prior notification to the CSSF.

In accordance with point 7 of the UCIA Circular, a UCIA must file, on an annual basis, information regarding its business activities and resources at the latest five months after its financial year-end. To that effect, information referred to in point 7 and detailed in Annex B of the UCIA Circular should be reported by the UCIA via the “UCI Administrator Reporting Tool” module (UCIAR module) on the CSSF eDesk platform or via S3 system by using a structured exchange file.