CSSF Circular 12/544
Towards a risk-based supervision of the “Support PSF"
A new regulation to meet new challenges
Several years ago, the status of Support Professionals of the Financial Sector (Support PSF) was created in Luxembourg law in order to guarantee an appropriate level of high- quality organisation in companies offering operational and technical services to financial professionals.
CSSF Circular 12/544 constitutes a new stage in the supervision of Support PSF and optimises this supervision using a risk-based approach. The new circular seeks to ensure the appropriate management of direct or indirect risks that might impact their professional financial clients.
This circular implements a risk assessment and management process for the provision of services to the financial sector for support PSF, relying on:
- The application of the principle of proportionality according to the importance of the activity exercised in the financial sector by the support PSF
- Self-assessment and management taken into account regarding risks the support PSF exposes the financial sector to and which are subject to an annual risk assessment report (RAR) by the support PSF; a description of the activities exercised in the financial sector, the organisation and infrastructure – to be provided annually in a descriptive report (DR) – will facilitate the understanding and analysis of the risks reported in the RAR
It is expected that the above would be completed with the issuance of an agreed-upon procedures report of findings by the approved statutory auditors, allowing a precise assessment of the organisation, the internal control system, the financial situation and the risks incurred.
Our multidisciplinary approach and expertise both in the field of risk management and in the Support PSF sector allows us to help you cover every aspect of this new regulatory obligation.
Our team is committed to helping you improve the quality of your organisation, overcome the challenges and take advantage of the opportunities presented by the CSSF regulation.