The Financial Sector Supervisory Commission (CSSF) that Lemanik Asset Management, an investment fund manager, faced an administrative penalties totaling €55,500, in a press release on 30 April 2024.

The sanctions stemmed from two main violations: first, a €44,800 fine for non-compliance with the Law of 2010 regarding the supervision of delegates; and second, a €10,700 penalty for failing to adhere to the Law of 2013 concerning delegate supervision.

The CSSF various breaches that led to administrative sanctions under the Law of 2010, including oversight issues with the distribution network and delegated portfolio managers. Similarly, breaches subject to administrative sanctions under the Law of 2013 were identified, ranging from delays in due diligence to quality and monitoring concerns with fund administrators and delegated portfolio managers.

Despite corrective actions undertaken by Lemanik Asset Management, the CSSF concluded that its monitoring processes were ineffective at the time of the inspection, resulting in contraventions of relevant articles of the Law of 2010 and 2013 at the time of inspection.

Delano has contacted Lemanik for comment.