CSSF Circular 24/856: Key Takeaways from Our Roundtable Discussion

Event Highlights

Speakers:

• Galaxy Mayani, Director – Risk Management, Carne Group
• Vasileios Karalekas, Managing Director, Quantitative Solutions, Waystone
• Steve Barnes, CTO, AQMetrics
• Arnaud Mikolajczyk, Senior Risk Manager, ME Business Solutions
• Cathal Connolly, Global Head of Regulatory Solutions, AQMetrics (Moderator)

Our expert speakers provided deep insights into the practical implications of the new CSSF Circular 24/856, discussed strategies for effectively managing risks, and shared best practices for compliance in the current financial landscape. The discussions were rich with actionable advice, from leveraging technology for enhanced monitoring to embedding ESG considerations into investment frameworks.

Key Takeaways

1. Strengthen Risk Management Frameworks

The panel emphasised the importance of implementing robust risk management frameworks to better identify, assess, and mitigate risks within fund operations. This includes enhancing internal controls and processes to align with the new regulatory requirements set by CSSF Circular 24/856. Effective risk management frameworks are essential for maintaining compliance and safeguarding investor interests.

2. Enhance Alerts and Reporting Mechanisms

Developing sophisticated alert systems and reporting mechanisms is crucial for ensuring timely and accurate compliance monitoring. The speakers highlighted the need for technology-driven solutions that can provide real-time alerts and comprehensive reporting to help funds stay compliant and respond quickly to any breaches. Advanced reporting mechanisms enable proactive management and swift rectification of potential issues.

3. Increase Focus on ESG Compliance

With the growing emphasis on Environmental, Social, and Governance (ESG) factors, the discussion underscored the necessity for funds to prioritise ESG compliance. This involves integrating ESG considerations into investment strategies and ensuring that funds meet the evolving expectations of regulators and investors alike. Embracing ESG principles can enhance the fund’s reputation and attract socially conscious investors.

How to Get Ahead of Circular 24/856

Navigating the complexities of regulatory changes like Circular 24/856 demands proactive measures to mitigate risks effectively. As Luxembourg-based funds face the imminent challenges outlined in this analysis, the significance of leveraging technology solutions becomes paramount. By adopting advanced technology solutions tailored for investment breach monitoring and NAV calculation, firms can streamline operations, minimize errors, and uphold regulatory standards. As the deadline for Circular 24/856 approaches, investing in technology is not just a necessity—it’s a strategic imperative for safeguarding investor interests and sustaining long-term success in an evolving financial landscape.

AQMetrics understands the complexities of Investment Breach Monitoring and can answer any questions you may have on the best practice preparation steps that can be taken by Luxembourg-based funds in 2024 to mitigate risk.