The CSSF has issued clarifications regarding the controls Luxembourg depositaries need to implement for AIFs investing in illiquid assets. The key points are:
- Ex-Ante Controls: The CSSF stresses that checks must be performed before the acquisition of illiquid assets to ensure compliance with safekeeping duties. This involves verifying ownership and maintaining records as per Article 90 of the AIFMR.
- Transaction Monitoring:
- Prior to Payment: Deposit managers must receive transaction notifications with supporting documents from AIFMs to verify the transaction and asset details.
- At the Time of Payment: Consistency checks should be performed between payment instructions and the previously verified documents.
- After Payment: Verification of effective ownership must be confirmed through final transaction documents and, if applicable, external registers.
- AIFM Responsibilities: Luxembourg authorized AIFMs must provide depositaries with all necessary information timely to fulfill safekeeping duties, including the ex-ante controls.
These measures aim to standardize the control practices among depositaries and ensure proper execution of their safekeeping duties
The article can be found here Clarification CSSF
To be honest, I thought it was already the case