# ESMA Guidelines Assessor

> Source: https://bryter.com/de/use-cases/esma-guidelines-assessor/

An ESMA Guidelines Assessor automatically assesses whether a specific non-EU fund can establish a parallel fund in an EU member state and what requirements need to be met determines which legal requirements this entails.

#### Background

Non-EU managers looking to set up a parallel fund structure in Europe to access EU investors have to be mindful both of the substance requirements issued by the European and Securities and Markets Authority (ESMA) as well as any specific requirements imposed by the regulator in the relevant EU Member State.  

Luxembourg is one of the EU member states that is most popular with both European funds and international fund managers. The Commission de Surveillance du Secteur Financier (CSSF) put in place detailed requirements regarding the shareholding structure, capital, management bodies, central administration and internal governance arrangements of fund management companies, and rules governing the delegation of key functions.
As EU policy tightens eligibility criteria in an effort to counteract the creation of ‘letter-box’ entities and to protect domestic fund industries post-Brexit, non-EU managers find it increasingly difficult to assess whether a parallel EU fund in Luxembourg would be beneficial and how to navigate through their rigorous application process and its requirements.

With BRYTER, law firms can build an automated ESMA Guidelines Assessor that allows clients to inform themselves about the opportunities and requirements related to setting up a parallel fund in EU member states such as Luxembourg. Clients receive immediate feedback and the matter is then directed to the competent lawyer to advise on and initiate next steps. To start the assessment, the user is guided through a series of questions. These inputs then determine the requirements the particular fund manager needs to fulfil in-line with ESMA regulations. Any additional documentation or information can be requested from the fund manager directly via our [financial services automation](https://bryter.com/industry/financial-services-automation/) tool. As a result, the tool assesses the requirements in several EU member states, provides a recommendation and determines whether there are any red flags that would prohibit or constitute a severe blocker to the creation of a parallel EU fund given the specific requirements of the user. The user can then choose which EU member state the fund should be established in and is guided through the particular requirements as outlined by the national regulator.
Due to the open architecture of the BRYTER platform, the embedded modular logic of the tool can easily be amended to account for any changes in the law and to provide a tailored solution for a specific fund type and its services.