Loans qualifying as money market instruments can no longer be held by UCITS funds.
The FAQ only formalises a position taken by the CSSF in its regulatory practice several months ago.
UCITS invested in loans have to disinvest from those positions by 31 December 2020, taking into account the best interests of investors. In addition, the prospectuses of those UCITS, offering the possibility to invest in loans, have to be updated by 31 March 2021 at the latest, in order that they no longer provide for the possibility for such investments.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.