UCIs – Valuation Governance

Conducting Officers, directors, and individuals seeking to strengthen their understanding of valuation governance, regulatory expectations, and best practices in the Luxembourg fund environment.

• Familiarity with the Luxembourg regulatory framework for investment funds
• Familiarity with the Luxembourg investment fund ecosystem
• Familiarity with financial markets and instruments

This programme provides a comprehensive overview of the key accounting, legal, regulatory, and supervisory considerations surrounding valuation practices for investment funds in Luxembourg. Participants will gain practical insight into LUX GAAP and IFRS valuation principles, regulatory requirements applicable to different fund structures, and the evolving expectations of regulators regarding governance, independence, pricing controls, and valuation under stressed market conditions. Through practical examples and case studies, the programme aims to strengthen participants’ understanding of robust valuation frameworks and best practices across the fund industry.

• Know the concept of fair value with reference to the key accounting standards (LUX GAAP and IFRS)
• Understand the main legal and regulatory requirements for valuation
• Be aware of the supervisory expectations (ESMA and CSSF)

Accounting standards

• Overview of LUX GAAP and IFRS valuation provisions
• IFRS Fair Value, Fair Value Hierarchy and Valuation Techniques

Legal & Regulatory requirements

• Product Requirements:
  • UCITS and UCIs Part II
  •  Money Market Funds
  •  SIFs and RAIFs
  • Valuation and NAV Calculation Frequency
• AIFM Requirements:
  • External vs Internal Valuation Function
  • Valuation Committee
  • Valuation Policies and Procedures
  • Valuation Models
  • Review of Individual Values of Assets
• Pricing Process as part of the NAV Calculation Process

Supervisory Expectations

• Valuation under stressed market conditions
• Interaction between Liquidity Stress Testing and valuation
• Independence of the valuation function and conflicts of interest
• Use of third parties and challenge of external pricing sources
• Controls by IFMs on depositaries and by depositaries on IFMs
• Case Study: Continuation Funds