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On June 4, 2026, the Commission de Surveillance du Secteur Financier (CSSF), Luxembourg's financial services regulator, published a feedback report on its thematic review of valuation frameworks for less liquid and illiquid assets. The review examined valuation practices of investment fund managers (IFMs) managing alternative investment funds (AIFs) investing in asset classes such as private equity, real estate, infrastructure, private debt, and fund of funds. The CSSF also examined ancillary valuation aspects related to undertakings for collective investment in transferable securities (UCITS) investments in unlisted securities or listed securities that are not actively traded. The thematic review was launched in late 2023 through a dedicated questionnaire, with work conducted throughout 2024 and 2025. The CSSF conducted significant supervisory work both off-site and on-site to examine valuation risks within the asset management sector, prompted by successive crisis episodes, geopolitical and economic uncertainties, and the substantial increase in assets under management of AIFs investing in less liquid and illiquid assets. The feedback report provides IFMs with guidance on implementing and maintaining robust valuation policies, procedures, and controls for the AIFs and UCITS they manage. It sets out observations and recommendations aimed at harmonising and enhancing valuation practices across the industry. All IFMs are expected to conduct benchmarking exercises against the observations and recommendations outlined in the report and implement necessary corrective measures where applicable. The CSSF identified valuation risk as a key supervisory priority for 2026, citing the growth of AIFs investing in less liquid and illiquid assets, increasing retail investor participation in these funds, and current geopolitical uncertainties. The feedback report is available on the CSSF website and applies to investment companies in risk capital (SICARs), investment fund managers, specialised investment funds (SIFs), and UCITS. REFERENCES: Commission de Surveillance du Secteur Financier. (2026, June 4). Communication on the CSSF Feedback Report – Thematic review – Valuation framework for less liquid and illiquid assets. Retrieved from https://www.cssf.lu/