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Regulatory News Alert
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Keep yourself informed on the latest updates concerning tax, regulations, laws and directives.
In February 2020, the European Securities and Markets Authority (ESMA) proposed to postpone the entry into force of the regulatory technical standards (RTS) on settlement discipline in accordance with the Central Securities Depositories Regulation (CSDR) until 1 February 2021.
On 23 July 2020, the Commission de Surveillance du Secteur Financier (CSSF) published Circular 20/747 on the technical procedures regarding the application of the Law of 25 March 2020 establishing a central electronic data retrieval system related to international bank account numbers (IBAN) and safe-deposit boxes.
27 July 2020 - European Commission adopts Capital Market Recovery Package
On 24 July 2020, the European Commission adopted a Capital Markets Recovery Package (“the Package”) to help capital markets support businesses to recover from the COVID-19 pandemic.
27 July 2020 - CSSF regulation: Essential financial services under NIS Directive
Following Luxembourg’s Law of 28 May 2019 transposing the NIS Directive1, on 20 July 2020, the Commission de Surveillance du Secteur Financier (CSSF) published its Regulation N° 20-04 of 15 July 2020 on the list of services considered as essential for maintaining critical societal and economic activities.
22 July 2020 - GDPR—Third country decision by the EU Court of Justice
Decision 2016/1250 on the adequacy of the protection provided by the EU-US Privacy Shield. On 16 July 2020, the Court of Justice of the European Union (CJEU) declared that the European Commission's adequacy decision regarding the European Union (EU)-United States (US) Privacy Shield is invalid.
On 9 July 2020, the European Securities and Markets Authority (ESMA) published a public statement on the prohibition of providing external support to money market funds (MMFs) under Article 35 of the Regulation (EU) 2017/1131 (MMF Regulation).
8 July 2020 - AML: Luxembourg approves law on the register of fiducies and trusts
On 1 July 2020, the Luxembourg parliament unanimously approved the law on the creation of a register of fiducies and trusts.
25 June 2020 - Sustainable finance: “Taxonomy Regulation” published in the Official Journal
After reaching a political agreement in December 2019, the EU’s Regulation 2020/852 on the establishment of a framework to facilitate sustainable investment (“Taxonomy Regulation”) was published in the Official Journal on 22 June 2020.
11 June 2020 - EU assesses AIFMD, opening the ground for AIFMD II
On 10 June 2020, the European Commission published its report assessing the application and the scope of Directive 2011/61/EU of the European Parliament and of the Council on alternative investment fund managers (AIFMD).
On 10 June 2020, the High-Level Forum (HLF) issued its final report on the Capital Markets Union (CMU), the policy initiative launched by the European Commission to achieve fully functioning and integrated capital markets across EU member states.
5 June 2020 - Reminder: SRD II Implementing Regulation – in force from 3 September 2020
The Shareholder Rights Directive’s Implementing Regulation 2018/1212 entry into force, is still scheduled for 3 September 2020, is approaching. No COVID-19 related postponement have been planned, hence possible impacts must be considered, both by issuers and by intermediaries.
On 4 June 2020, Luxembourg's Ministry of Finance confirmed that the proposal for a European Commission directive aimed at postponing certain deadlines for declaration and exchange of information in tax matters due to the COVID-19 pandemic has passed the final stages of approval, although this is yet to be formally published.
5 June 2020 - Cloud outsourcing: ESMA consults on new guidelines
On 3 June 2020, the European Securities and Markets Authority (ESMA) published a consultation paper on guidelines on outsourcing to cloud service providers (the “Guidelines”) as cloud solutions are commonly used by financial firms.
Following a recent compromise, Member States may exercise the option to defer the DAC6 reporting deadlines by six months.
On 20 May 2020, the European Central Bank (ECB) published for consultation purposes a draft guide outlining its expectations for banks to integrate climate and environmental risks into their operational strategies, governance, risk management and communications.
On 7 May 2020, the European Commission adopted an action plan, which puts forward concrete measures that the Commission will take over the next 12 months to better enforce, supervise and coordinate the EU's rules on combating money laundering and terrorism financing.
6 May - EMIR – COVID-19: ESAs’ joint RTS on amendments to the bilateral margin requirements
On 4 April 2020, in response to the COVID-19 outbreak, the European Supervisory Authorities (ESAs) updated the Final Report on the Regulatory Technical Standards (RTS) on various amendments to the bilateral margin requirements (Commission Delegated Regulation (EU) No 2016/2251).
24 April - Sustainable Finance: the ESAs launch consultation for ESG disclosures standards
On 22 April 2020, the European Supervisory Authorities (ESAs) published a joint consultation paper setting out the proposed Regulatory Technical Standards (RTS) on content, methodologies and presentation of disclosures, pursuant to Regulation (EU) 2019/2088 on Sustainable Finance Disclosure (SFDR).
In February 2020, the European Union Council has approved new measures (Directive and Regulation) imposing on payment services providers (PSPs) to collect and report data regarding cross-border payments as from 2024. CESOP, a new database to be set up by the EU Commission, will keep record of this information regarding cross-border payments within the EU, as well as payments to third countries or territories. National tax authorities will have access to CESOP to control the correct fulfilment of VAT obligations, mainly but not exclusively, on cross-border business to consumer (B2C) supplies of goods and services.
7 April - ESMA publishes final performance fees guidelines for UCITS and certain types of AIFs
On 3 April 2020, the European Securities and Markets Authority (ESMA) published its final performance fees guidelines for UCITS and certain types of AIFs.
6 April - Luxembourg Law of 25 March 2020
On 25 March 2020, the Luxembourg government published a new law introducing a central electronic research system which gathers data about payment and bank accounts identified by an IBAN number and bank safes held by credit institutions in Luxembourg.
2 April - ESMA consults on standardized information to facilitate cross-border funds distribution
On 31 March 2020, the European Securities and Markets Regulator (ESMA) launched a consultation on the standard forms, templates, and procedures that national competent authorities (NCAs) should use to publish information on their websites to facilitate cross-border distribution of funds under Regulation EU/2019/1156 on the facilitation of cross-border distribution of collective investment undertakings.
Following the recent publication of the Grand Ducal Regulation that authorizes the remote holding of AGMs and other management meetings (alert to be found here), the Luxembourg authorities released draft bill n°7541 on Friday 27 March 2020 to grant the possibility to prorogue or postpone the deposit and publication of annual accounts in derogation to the applicable rules.
31 March - European supervisors promote flexibility in light of the COVID-19 pandemic
On 20 March 2020, in light of the adverse systemic economic impact of the COVID-19 pandemic, the European Central Bank (ECB) announced further measures to provide banks with flexibility in their application of regulatory requirements in the context of the crisis.
24 March - Grand Ducal Regulation of 20 March 2020: Measures concerning company meetings
On Friday 20 March 2020, a Grand Ducal Regulation dealing with the introduction of special rules and measures governing the organization of shareholder, Board of Directors, or other supervisory and management body meetings was issued, published in the Official Journal of the Grand Duchy of Luxembourg.
24 March - ESMA grants flexibility in SFTR application for looming deadline of 13/14 April
Securities Finance Transactions Regulation (SFTR) reporting is planned to ‘go live’ on the 13th or 14th April 2020.
23 March - Updated CSSF FAQ on swing pricing in response to COVID-19 market volatility
On Friday 20 March 2020, the CSSF issued an updated FAQ on swing pricing for UCIs (UCITS, UCI Part II, and SIFs).
18 March - Brexit: UK Government consults on new equivalent regimes for UCITS and money market funds
On 11 March 2020, Her Majesty's Treasury Department of the Government of the UK launched a consultation on the proposal for a more streamlined regime to simplify the process for allowing investment funds set up overseas to be marketed in the UK.
The ECB, EBA, and ESMA have taken exceptional measures in response to today’s exceptional circumstances.
12 March - CSSF FAQ on UCITS Directive – Clarification on fee disclosure
On 9 March 2020, the Commission de Surveillance du Secteur Financier (CSSF) updated the Frequently Asked Questions (FAQ) concerning the Luxembourg Law of 17 December 2010 relating to undertakings for collective investment (UCITS).
On 9 March 2020, the Technical Expert Group on sustainable finance (TEG) issued a final report setting out the TEG’s final recommendations to the overarching design of the EU Taxonomy as well as guidance for its users.
6 March - European Commission forges its sustainability strategy with Climate Law and Climate Pact
On 4 March 2020, the European Commission presented a proposal of legislation in line with the EU's political commitment to be climate neutral by 2050 in order to protect the planet and the people.
26 February - Regulatory requirement defined at European level by the EBA
The CSSF published Regulation 18/03: « Règlement CSSF N° 18-03 sur 1) l’implémentation de certaines discrétions contenues dans le règlement (UE) n° 575/2013 et la transposition de l’Orientation (UE) 2017/697 de la Banque Centrale Européenne du 4 avril 2017 relative à l'exercice des options et facultés prévues par le droit de l'Union par les autorités compétentes nationales à l'égard des établissements moins importants (BCE/2017/9) et 2) abrogeant le Règlement CSSF N° 14-01 ».
20 February - The EU’s digital strategy
On 19 February 2020, the EU Commission published its new EU digital strategy. It represents the first series of proposals to boost Europe’s digital transformation.
7 February - MMF Regulation: Reporting obligations to start end of Q1 2020
According to Article 37 of Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money market funds (Money Market Fund Regulation or MMFR), the manager of a money market fund (MMF) must report certain information to the competent authority of the MMF.
6 February - Sustainable Finance: ESMA sets out its strategy
The topic of sustainable finance has gained significant momentum in recent years. Regulators and supervisors are increasingly focused on incentivizing and requiring financial firms to consider sustainability factors in their day-to-day operations and in helping the economy transition to a more environmentally-friendly way of functioning.
6 February - MiFID II: ESMA launches common supervisory action on suitability rules
On 5 February 2020, the European Securities and Markets Authority (ESMA) launched a common supervisory action (CSA) with national competent authorities (NCAs) on the application of MiFID II suitability rules across the European Union (EU).
5 February - CSDR: ESMA seeks to delay settlement discipline requirements
On 4 February 2020, the European Securities and Markets Authority (ESMA) published its Final Report with a view to postpone the entry into force of the Commission Delegated Regulation (EU) 2018/1229 with regard to regulatory technical standards on settlement discipline (RTS on settlement discipline).
4 February - MiFID II / MiFIR's third country access: New reporting requirements introduced
On 31 January 2020, the European Securities and Markets Authority (ESMA) published a consultation on draft technical standards on the provision of investment services and activities in the Union by third country firms under Directive 2014/65/EU on markets in financial instruments (MiFID II) and Regulation 600/2014 on markets in financial instruments (MiFIR).
On 17 January 2020, the Commission de Surveillance du Secteur Financier (CSSF) published Luxembourg’s first money laundering (ML) / financing of terrorism (FT) risk analysis on the Collective Investment Sector.
As of 1 January 2020, all entities which are subject to the CSSF supervision and which are using benchmarks are restricted to the use of the following types of benchmarks.
21 January 2020 - FinDatEx publishes new version 5 of Solvency II Tripartite Template (TPT)
On 16 January 2020, Financial Data Exchange Templates (FinDatEx) published a new version of the Solvency II Tripartite Template (“TPT”).
13 January 2020 - Latest Brexit developments
Before Christmas, Boris Johnson and the Conservative party swept the UK elections, winning 364 seats out of 650. With an absolute majority, the Brexit mandate was made clear: the UK will leave the Single Market on 31 January 2020.
9 January 2020 - ESMA clarifies SFTR reporting
On 6 January 2020, ESMA published its final report, Guidelines on reporting under the Securities Financing Transactions Regulation (SFTR), which includes amended SFTR validation rules and a statement on Legal Entity Identifiers (LEI).
On 20 December 2019, the Commission de surveillance du secteur financier (CSSF) published Circular 19/733 (the Circular) with the objective to implement into Luxembourg regulation, the International Organization of Securities Commissions (IOSCO) recommendations and good practices on liquidity risk management for undertakings for collective investment (UCIs).
On 23 December 2019, the Chamber of Deputies published the Draft Law establishing centralised registries and electronic data retrieval systems to identify natural or legal persons holding or controlling payment accounts, bank accounts, and safe-deposit boxes in Luxembourg.
On 20 December 2019, Commission de Surveillance du Secteur Financier (CSSF) published Circular CSSF 19/732 relating to clarifications on the identification and verification of the identity of the ultimate beneficial owner(s) (UBOs).
2020
20 December 2019 - European CMU: Preliminary deal reached on new rules for crowdfunding platforms
On 19 December 2019, Finland's presidency of the Council and the European Parliament reached a political agreement on a new framework facilitating the provision of services across the EU for crowdfunding platforms.
20 December 2019 - Sustainable finance: EU reaches political agreement on the “taxonomy regulation”
On 17 December 2019, the European Parliament announced that negotiators from the European Parliament and Council of the EU had reached an agreement concerning the so-called “taxonomy regulation” which sets out criteria to determine whether an economic activity is environmentally sustainable.
17 December 2019 - Luxembourg RBE: Compliance failure might soon be prosecuted
The Law of 13 January 2019 on Register of Beneficial Owners (the Law), establishing an electronic central register of beneficial owners (RBE) for the legal entities registered on the Luxembourg Trade and Companies Register, has entered into force in March 2019. It requires the entities within its scope to register with the RBE (see our previous news alert for further details).
The fifth European Anti-Money Laundering Directive (Directive (EU) 2018/843 or AMLD 5) requires Member States to not unreasonably restrict or prohibit the exchange of information and/or cooperation between competent authorities for anti-money laundering/combating the financing of terrorism (AML/CFT) supervision purposes.
On 12 December 2019, the European Securities and Markets Authority (ESMA) published a peer review report on how national competent authorities (NCAs) handle suspicious transactions and order reports (STOR) under the Market Abuse Regulation (MAR).
12 December 2019 - European Union takes further steps towards a more sustainable economy
On 11 December 2019, the European Parliament presented the European Green Deal, a roadmap for making the European Union's economy sustainable.
12 December 2019 - FinDatEx publishes the European MiFID Template Version 3 (EMT V3)
On Tuesday 10 December 2019, the European Working Group validated the new EMT (European MiFID template) v3 template. A few important changes have been made to EMT v1, the version currently used by investment funds, which include updates from existing EMT v1 fields as well as additional new fields.
On 9 January 2019, we reported on the endorsement by EU ambassadors of a legislative package introducing a new regulatory framework for investment firms.
The Basel Committee on Banking Supervision (BCBS) and International Organization of Securities Commissions (IOSCO) have agreed international standards for the exchange of bilateral margin along with a calendar to facilitate a consistent implementation across jurisdictions.
2 December 2019 - EBA’s final guidelines on ICT and security risk management
In accordance with Capital Requirements Directive (CRD IV), the European Banking Authority (EBA) has been mandated to further harmonize financial institutions' governance arrangements, processes, and mechanisms across the EU.
2 December 2019 - Implementing Basel III in the European Union
The European Commission is now preparing the EU’s next bank capital legislative package, the sixth Capital Requirements Directive and third Capital Requirements Regulation (CRD6/CRR3).
28 November 2019 - CSSF publishes AML/CFT FAQ for investment funds and fund managers
On the 25 November, the CSSF released a FAQ concerning the persons involved in AML/CFT for a Luxembourg investment fund or an investment fund manager supervised by the CSSF for AML/CFT purposes.
27 November 2019 - The CSSF introduces AML/CFT investment market entry forms (funds and IFMs)
On 7 November 2019, the Commission de Surveillance du Secteur Financier (CSSF) issued a press release announcing the set-up of two new market entry forms aimed at collecting standardized key information relating to money laundering and terrorist financing risks and the relevant mitigation measures in place from professionals supervised by the CSSF.
8 November 2019 - Important milestone for SFTR reporting: Further technical details from ESMA
With the objective of increasing transparency of securities financing markets, from April 2020, the package of new measures under the Securities Financing Transactions Regulation (SFTR) was published in the Official Journal of the EU.
6 November 2019 - FATF launches consultation on draft Guidance on digital identity
The growth in digital financial transactions requires a better understanding of how individuals are being identified and verified in the world of digital financial services. Digital identity (ID) technologies are evolving rapidly, giving rise to a variety of digital ID systems.
On 24 October 2019, the European Supervisory Authorities (ESAs) issued a Supervisory Statement targeting bond manufacturers and distributors within the European Union in order to advocate a level playing field of retail investor protection in the EU and promote an harmonized application by national competent authorities (NCAs) of the scope of the Regulation for packaged retail and insurance-based investment products (PRIIPs Regulation), regarding the determination of the type of bonds for which it is necessary to draw up a Key Information Document (KID).
On 23 October 2019, the European Banking Authority (EBA) published an Opinion on disclosure to consumers buying financial services through digital channels under Directive 2002/65/EC concerning the distance marketing of consumer financial services (the Directive).
25 October 2019 - PRIIPs self-assessment: Deadline reminder from the CSSF
On 18 October 2019, the Commission de Surveillance du Secteur Financier (CSSF) issued a new communication reminding all SIFs, Part II UCIs and SICARs to complete an online assessment.
24 October 2019 - ESA Joint Consultation Paper concerning amendments to the PRIIPs KID
On Wednesday 16 October, the European Supervisory Authorities or “ESAs” (ESMA, EBA, EIOPA) published their long-awaited joint consultation paper concerning amendments to the PRIIPs KID.
18 October 2019 - Luxembourg Standard Chart of Accounts 2.0
On 23 September 2019, the Grand-Ducal Decree of 12 September 2019 (the GDD) determining the new Luxembourg Standard Chart of Accounts (the 2020 SCA) was published in the Luxembourg Official Journal.
18 October 2019 - Interpretation of the two consecutive years rule of the accounting law
On 30 September 2019, the Luxembourg Accounting Committee or the Commission des Normes Comptables (the CNC) published a Q&A (Catégorisation des entreprises : interprétation du critère de répétition visé à l'article 36 LRCS) related to the interpretation of the two consecutive years rule of the Law of 19 December 2002 on the commercial and companies register and on the accounting records and annual accounts of undertakings (the Accounting Law).
18 October 2019 - International reports on governance for OTC derivatives markets are published
On 9 October 2019, the Financial Stability Board (FSB) published a report on the governance arrangements for the globally harmonized Unique Product Identifier (UPI).
17 October 2019 - EU Commission launches review of Benchmark Regulation
Regulation (EU) 2016/1011 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (the EU Benchmark Regulation or BMR), has been in process since 1 January 2018.
16 October 2019 - Brexit: CSSF to “blacklist” non-compliant UK asset managers
In order to continue to pursue activities in Luxembourg in a “hard” Brexit scenario, UK asset managers were required to notify the Commission de Surveillance du Secteur Financier (CSSF) of their intention to continue to provide services in Luxembourg by 15 September at the latest.
On 4 October 2019, the three European Supervisory Authorities (EBA, EIOPA and ESMA) published their second joint Opinion on the risks of money laundering and terrorist financing affecting the European Union financial sector.
8 October 2019 - ESMA steps up for review of Market Abuse Regulation
Earlier this year, the European Commission approached the European Securities and Markets Authority (ESMA) requesting technical advice in regards to a report on the application of the Market Abuse Regulation (MAR).
30 September 2019 - EU Council endorses ‘green finance taxonomy’
On 25 September 2019, EU ambassadors approved the Council’s position on creating a ‘green finance taxonomy‘. This opens the negotiations with the European Parliament in order to achieve the final version of the text.
24 September 2019 - ESMA Q&As on UCITS Directive - Clarification on KIID-related disclosures
Following the publication of ESMA’s Q&A on the UCITS KIID benchmark and past performance obligations (hereafter “Q&A”) in March 2019, EFAMA requested ESMA to provide further clarification specifically on the KIID-related disclosures as regards the use of benchmarks in UCITS.
In April 2018, the European Systemic Risk Board (ESRB) published a set of recommendations to address liquidity and leverage risk in investment funds.
The Grand Ducal Law of 1 August 2019 amends the Law of 24 May 2011 on the exercise of certain shareholder rights. This law transposes, for Luxembourg, the Directive (EU) 2017/828 (hereafter the Shareholders' Rights Directive II or SRD II).
19 August 2019 - Luxembourg Draft Law 7467 partly transposing Directive (EU) 2018/843 (AMLD V)
On 8 August 2019, Draft Law 7467 transposing certain provisions of the fifth Anti-Money Laundering Directive (AMLD V) was presented to the Luxembourg Chamber of Deputies.
On Thursday 25 July, following a six-month public consultative process, the United Nations Environment Programme Finance Initiative (the UNEP FI) has released the final versions of the UNEP FI Principles for Responsible Banking (the Principles) and their supporting framework documents.
26 July 2019 - European Union strengthens its AML regime
On Wednesday 24 July, the European Banking Authority (EBA) published an Opinion urging for closer cooperation and exchange of information between prudential supervisors and Financial Intelligence Units (FIUs).
24 July 2019 - ESMA provides guidance on stress testing and reporting standards for MMFs
Regulation (EU) 2017/1131 of 14 June 2017 on money market funds (MMFs) (the “MMF Regulation”) requires guidance on selected requirements. Therefore, ESMA (the European Securities and Markets Authority) has now issued two sets of guidelines that will help MMFs interpret the existing regulatory requirements.
18 July 2019 - Mandatory CSSF notification for UK firms in the context of Brexit
On 15 July 2019, the Commission de Surveillance du Secteur Financier (CSSF) issued two press releases (19/33 and 19/34) with regard to mandatory notification in the event of the UK leaving the EU without a withdrawal agreement (“hard Brexit”).
On 16 July 2019, the European Securities and Markets Authority (ESMA) launched a consultation paper (CP) seeking feedback on the draft Guidelines on performance fees in UCITS (Guidelines).
16 July 2019 - Changes to Luxembourg fund laws–adoption of draft Law 7349
The Luxembourg Parliament adopted draft Law No. 7349 (the Law) on 11 July 2019. A request to dispense with the second vote required by the Constitution has been filed.
12 July 2019 - Adoption of the new Prospectus Law in Luxembourg
On 2 July 2019, the Luxembourg Parliament adopted the final text of the bill of Law n°7328 (the “New Prospectus Law”), implementing Regulation 2017/1129/EU of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market.
3 July 2019 - CSSF Press Release 19/28 on PRIIPs self-assessment
On 1 July 2019, the Commission de Surveillance du Secteur Financier (CSSF) issued a communication requiring all SIFs, Part II UCIs and SICARs to complete an online assessment with regard to the impact of Regulation 1286/2014 (PRIIPs) on PRIIPs manufacturers by 31 October 2019 at the latest.
28 June 2019 - Circular 19/709
On 25 February 2019, the CSSF published Circular 19/709 (the Circular) concerning the introduction of quarterly internalised settlement reporting requirements pursuant to Article 9(1) of EU Regulation No 909/2014 (CSDR).
On 24 June 2019, the European Securities and Markets Authority (ESMA) launched a consultation to gather evidence on potential short-term pressures stemming from the financial sector and causing corporations to apply a rather short-term, instead of long-term, view.
On 21 June 2019, the Luxembourg Business Registers (LBR) published an explanatory guide prescribing the methodology for the declaration of Beneficial Owners to the RBE (the “Guide”).
26 June 2019 - FATF Recommendations on virtual assets
In October 2018, the Financial Action Task Force (FATF) adopted changes to its Recommendations to explicitly clarify that they apply to financial activities involving virtual assets (VA) and virtual asset service providers (VASPs).
EU law requires large companies (listed companies, banks, and insurance companies) to disclose certain information on the way they operate and manage social and environmental challenges. Furthermore, companies are required to include non-financial statements in their annual reports from 2018 onwards.
Compiling information from different jurisdictions regarding their existing frameworks for Cyber regulation, on 18 June 2019, the IOSCO has published a final report that provides an international overview of core cybersecurity standards as well as identification of the potential gaps in their application in different countries.
18 June 2019 - Financial Services Reward: Update - CRD V and CRR II
On 7 June 2019, the amended Capital Requirements Directive (CRD V) and Capital Requirements Regulation (CRR II) were published in the Official Journal of the European Union.
13 June 2019 - New Cybersecurity Act published in the Official Journal-welcome to new ENISA
On 7 June, the Regulation (EU) 2019/881 of the European Parliament and of the Council of 17 April 2019 on ENISA (European Union Agency for Cybersecurity) and on information and communication technology cybersecurity certification and repealing Regulation (EU) No 526/2013 (Cybersecurity Act), was published in the Official Journal of the EU.
6 June 2019 - ESMA Q&As on AIFMD & UCITS Directive – Clarification of depositary delegation rules
On 4 June, the European Securities and Markets Authority (ESMA) published updated question and answer documents (Q&As) on the application of the Alternative Investment Fund Managers Directive (AIFMD) and the Undertakings for the Collective Investment in Transferable Securities (UCITS) Directive with the focus on the delegation of depository function in accordance with the requirements set out in the Directives.
28 May 2019 - EMIR Refit to enter into force on 17 June : Why you are concerned?
The amended Regulation (EU) 2019/834 of the European Parliament and of the Council of 20 May 2019, Regulation (EU) No 648/2012 (Refit) was published in the Official Journal today.
In April 2019, the European Parliament endorsed an agreement on the regulation for Sovereign Bond-Backed Securities (SBBSR). The new financial instrument would take the form of low-risk liquid assets backed by a pre-defined pool of Euro-area central government bonds.
16 May 2019 - Mitigation of AML/CFT risks in third countries
The Regulation supplements Directive (EU) 2015/849 (the Anti-Money Laundering Directive – AMLD) with regard to regulatory technical standards (RTS) for the minimum action credit and financial institutions must take to mitigate money laundering (ML) and terrorist financing (TF) risk in third countries where they have established a branch or a majority-owned subsidiary.
According to the EU Action Plan on Financing Sustainable Growth from May 2018, one of the major goals of the EC is to clarify fiduciary duties and to increase transparency on sustainability risks and investment opportunities.
In October 2018, the Joint Committee of the European Supervisory Authorities (“ESAs”) published revised guidelines on complaints handling by entities of the European securities and banking sectors (“Guidelines”).
In November 2016, the European Commission (EC) proposed a banking reform package to introduce further risk-reduction measures and advance the completion of the European post-crisis regulatory reforms.
On April 10, the Commission de Surveillance du Secteur Financier (“CSSF”) published the new Circular 19/716 (“Circular”) on the provision of investment services and ancillary activities in Luxembourg by third-country firms.
16 April 2019 - UCITS – 29 March 2019 ESMA Q&A
On March 29, 2019, the European Securities and Markets Authority (ESMA) released a new version of its Q&A on the application of the Undertakings for the Collective Investment in Transferable Securities Directive (UCITS Directive).
In 2015, the European Union (EU) concluded the Paris Climate Agreement, setting, among others, the objective to make finance flows consistent with a pathway towards low greenhouse gas emission and climate-resilient development.
On 28 March 2019, the Luxembourg Parliament adopted the Bill of Law n°7426 (the “Law”) in respect of transitional measures for UCITS and Specialized Investment Funds (SIFs) in the context of Brexit.
ESMA clarifications on scope, live expected target date end of May 2019
28 March 2019 - CSSF Circular 19/714 updating CSSF Circular 17/654 on cloud computing
On 27 March 2019, the CSSF published Circular 19/714 (the Circular) which updates Circular 17/654 on IT outsourcing based on a cloud computing infrastructure.
26 March 2019 - ESAs review deal reached on the new EU supervisory framework
The Commission introduced on 12 September 2018 a proposal on strengthening the Union framework for prudential and anti-money laundering supervision that served as an accelerator for a project that was lingering on the shelves.
22 March 2019 - SFTR: final transparency rules, time to move to implementation
The Securities Financing Transactions Regulation (SFTR), among other things, requires all securities financing transactions (REPO, Reverse REPO, Securities lending, etc.) to be reported to a central database called "trade repository".
15 March 2019 - European Commission welcomes key milestone in EU whistleblowers regulation
The European Parliament and Member States reached a provisional agreement on new rules that will guarantee a high level of protection for whistleblowers who report breaches of EU law.
14 March 2019 - The EU is getting closer to disclosure rules on sustainable finance
At the very end of February 2019, the EU reached a political agreement on a new generation of low-carbon benchmarks. In addition, on 7 March, the European Parliament and Member States established another preliminary agreement on sustainable investments and sustainability risks. The new regulation introduces the disclosure obligations on how financial companies integrate the environmental, social and governance factors in their investment decisions.
27 February 2019 - EBA finalizes outsourcing guidelines
On 25 February, the European Banking Authority (EBA) published its revised guidelines on outsourcing arrangements. It sets out the specific provisions for the outsourcing governance frameworks applicable to financial institutions that are subject to capital requirements, as well as to payment providers.
Based on the Recommendation, the CSSF has since launched a requirement for semi-annual reporting of borrower-related residential real estate (RRE) indicators. The Circular provides detailed information on the indicators to be reported as well as on the template to be submitted.
21 February 2019 - Draft bill of law Transposing the Shareholder Rights Directive II
On 4 February 2019, the draft bill of law transposing Directive (EU) 2017/828 (known as the Second Shareholders' Rights Directive – SRDII) was lodged with the Luxembourg parliament.
20 February 2019 - Luxembourg: Grand-Ducal Regulation on Register of Beneficial Owners (RBE) adopted
On 15 February 2019, the Luxembourg government adopted the Grand-Ducal Regulation prescribing registration modalities, administrative fees and access to the Register of Beneficial Owners (the “Regulation”).
According to an official notice published on 14 February, Luxembourg’s Chamber of Deputies passed the Bill of Law 7363 (“the Law”) providing a legal framework for securities issued over Distributed Ledger Technology (DLT).
The European System of Financial Supervision (ESFS) was introduced in 2010 and became operational on 1 January 2011. It is a multi-layered system of micro- and macro-prudential authorities, which includes the European Systemic Risk Board (ESRB), the three European Supervisory Authorities (ESAs) and the national supervisors.
European Supervisory Authorities followed up a consultation paper released on 8 November 2018 on targeted amendments to the “PRIIPs Delegated Regulation” concerning the KID for PRIIPs. The report sets out the next steps following the analysis of the received feedback
On 5 February 2019, the political agreement was reached by the European Parliament and EU member states on the targeted EMIR reform with the objective to bring more proportionate rules for corporates
1 February 2019 - EMIR implementation considerations
On 31 January 2019, the European Securities and Markets Authority (ESMA) published a statement confirming its awareness of the challenges faced by small financial counterparties to implement and comply with certain EMIR obligations becoming applicable in 2019.
29 January 2019 - CSSF's communication on Brexit
The Commission de Surveillance du Secteur Financier (CSSF) published a press release on Brexit in order to remind the delegation of investment management activities to UK undertakings that will continue to be permissible and about Temporary Permissions Regimes (TPR) for continuity of operations in the UK.
28 January 2019 - CSSF Circular 18/698 – English version – a wider leap
The CSSF released an English translation of the CSSF Circular 18/698 for “GFI”. Although the French original version remains legally binding, this English translation will help Stakeholders to better grasp and share its content.
17 January 2019 - ESMA report on crypto-assets
On 9 January 2019, ESMA and EBA released separately reports on the specific characteristics and use of crypto-assets and the underlying DLTs; the relevance and gaps in existing EU regulations when applied to crypto-assets; as well as divergence in the regulatory approaches adopted by various Member States.
In 2007, the European Parliament and the European Council adopted the Shareholder Rights Directive (SRD) to ensure a better protection of the exercise of rights of shareholders in listed companies.
9 January 2019 - One-step closer to the new capital requirement framework for investment firms
On 7 January 2019, EU ambassadors endorsed the Council's position on a package of measures, composed of a regulation and a directive, setting out a new regulatory framework for investment firms.
In July 2018, the European Commission invited ESMA to provide technical advice on how to amend the UCITS Directive (2009/65/EC) and AIFMD (2011/61/EU) to integrate sustainability risks and sustainability factors into the two regimes.
2019
20 December 2018 - Good progress made in funds (UCITS/AIFs) cross-border distribution review
On 3 December 2018, the European Parliament ECON Committee agreed its position on the cross-border barriers to fund (UCITS and AIFs) distribution.
In an important step towards increasing the transparency of securities financing markets, on 13 December, the European Commission (EC) adopted a package of new measures under the Securities Financing Transactions Regulation (SFTR).
19 December 2018 - EBA clarifies STS securitisation criteria
On 12 December 2018, the European Banking Authority (EBA) published its final guidelines for the securitisation criteria to be eligible as simple, transparent and standardised (STS).
30 November 2018 - ESMA consults on future guidelines for Money Market Funds' (MMFs) disclosure
The MMF Regulation (Art. 37) obliges the manager of the MMF, for each MMF managed, to report information to the competent authority of the MMF, at least on a quarterly basis.
16 November 2018 - PRIIPs: ESAs consult on proposed changes to key information document
European Supervisory Authorities (ESAs) consultation paper seeks stakeholders’ views on proposed amendments to Commission Delegated Regulation (EU) 2017/653 of 8 March 2017 (“PRIIPs Delegated Regulation”).
16 November 2018 - EU-UK Brexit draft agreement and EU Commission communication on contingency plans
The last two days have been intense for Brexit; on 13 November, the EU Commission in parallel to finalizing a draft agreement with the UK released a communication on contingency planning in case the agreement is not enforced.
15 November 2018 - ESMA guidelines on certain aspects of the MiFID II suitability requirements
On 6 November, the European Securities and Markets Authority (ESMA) has issued the official translations of its Guidelines on certain aspects of the MiFID II suitability requirements (“Guidelines”).
5 Novembre 2018 - Important update UCITS/AIF depositary rules
On 30 October 2018, following the opinion of the European Securities and Markets Authority (ESMA) on asset segregation, the European Commission (EC) released two amendments to the UCTS and AIFMD regulations.
30 October 2018 - Investment firm’s prudential treatment
On 27 September, the ECON committee of the European Parliament issued draft reports on the Commission proposals for a directive and regulation on the prudential supervision and requirements for investment firms a model in some respects equivalent to the approach used for banks.
On 28 September, ESMA released a consultation paper that proposes additional guidelines and instructions for MM Funds to perform the required stress tests, and gather industry feedback on the proposed methodologies.
5 October 2018 - Distributed Ledger Technology finds its way into Luxembourg Securities Regulation
On 27 September, the Chambre des Députés published the Draft Law 7363 amending the 1 August 2001 Law on the circulation of securities.
The draft law aims to enable the stakeholders of the financial market place to benefit within a secured legal framework of the new opportunity offer by the technology.
2 October 2018 - A quality standard for sustainable finance products
Over the past few years, different sustainable finance initiatives have been trying to change mainstream investments to integrate environmental, social and governance aspects (commonly called ESG).
On 12 September, the EU Commission released a communication that proposed to strengthen the supervision of EU financial institutions to better address money-laundering and terrorist financing threats.
11 September 2018 - MiFID II, 9 months after: Where do we stand in Luxembourg?
MiFID II, live across the EU since 3 January 2018, became officially live in Luxembourg with the law and Grand-Ducal Regulation/Decree of 30 May 2018 on markets in financial instruments (the “Law”), which was published in the Luxembourg Mémorial A on 31 May 2018.
29 August 2018 - What does EMIR mean for ManCos?
On 23 August, the CSSF published the new CSSF Circular 18/698 on the authorization and organization of investment fund managers incorporated under Luxembourg law.
24 August 2018 - CSSF Circular 18/698 a leap forward in governance
On 23 August, the CSSF published the long waited, new CSSF Circular 18/698 (hereafter “circular”) on the “authorization and organization of Luxembourgish investment management companies.
24 August 2018 - CSSF Circular 18/697 on duties of AIF Depositary completing the framework
On 23 August, the CSSF released a new circular on the governance and organization of AIF (non-UCITS) fund depositaries.
22 August 2018 - Countdown to Brexit
On 15 August 2018, the ECB issued a publication following its communication to banks urging them to prepare for all contingencies in the context of the UK’s impending exit from the EU.
17 August 2018 - The ESMA updates its validation rules under the EMIR
On Thursday 9 August 2018, ESMA updated its validation rules under EMIR, with regard to the revised technical standards on reporting under Article 9.
Three questions regarding Issuer concentration, UCITS investing in other UCITS with different investment policies and Supervision of branches. One new question regarding Depositaries as counterparties in a transaction of assets that they hold in custody.
27 July 2018 - New EU Commission Delegated Draft - Safe keeping for UCITS funds
On 12 July, the EU Commission released its delegated regulation on safe-keeping duties for UCITS depositaries.
27 July 2018 - CSSF Brexit’s preparation call focus on Manco – CP 18/25
On 25 July 2018, the CSSF issued a publication addressed to the fund industry Manco and AIFM, it follows several recent publications from the EU Commission, EBA (European Banking Authority), or ESMA to call for a true and active preparation for Brexit.
On 19 July 2018, the European Commission adopted a communication outlining the ongoing work on the preparations for all possible outcomes of the United Kingdom's withdrawal from the European Union.
24 July 2018 - EU Securitization Regulation 2017/2402 - Overview
The new regulation came into force in January 2018 and becomes applicable as of 1 January 2019, with the intention of providing a general framework for securitization across the EU.
23 July 2018 - CSSF Brexit preparation call
On 10 July 2018, the CSSF echoed a publication from the EBA (European Banking Authority) to call for a true and active preparation for Brexit.
20 July 2018 - AMLD5 has entered into force
On 19 June 2018, the new AML/CTF EU directive 2018/843 (AMLD5) has been published in the Official Journal of the European Union and entered into force on 9 July 2018 with effective application from 10 January 2020.
26 June 2018 - BaFin published a new Circular on the Capital Investment Ordinance
The German Federal Financial Supervisory Authority (BaFin) reviewed the provisions applied to investments in relation to insurance undertakings and published Circular 11/2017 (VA) on 12 December 2017.
25 June 2018 - LEI: The grace period is over
“No LEI, no trade”. Time is ticking for all legal entities and, as the deadline for LEI implementation sets in, and 2 July looms closer, ESMA has confirmed that no further grace period will be granted to corporate client and financial institutions to comply with the requirements to have individual reference numbers for trading.
21 June 2018 - Capital Market Union: Proposal for a Regulation on Pan-European Pension Product
Following the proposition of draft update of the EMIR regulation (EMIR II) published on 3 May 2017, the European Parliament voted in plenary session (12/06/2018) its preferred version of the draft review of the EMIR (EU) No 648/2012 REFIT.
18 June 2018 - EMIR II starting blocks
Following the proposition of draft update of the EMIR regulation (EMIR II) published on 3 May 2017, the European Parliament voted in plenary session (12/06/2018) its preferred version of the draft review of the EMIR (EU) No 648/2012 REFIT.
15 June 2018 - UCITS – 25 May 2018 ESMA Q&A
On the 25 May 2018, the European Securities and Markets Authority (ESMA) released a new version of its Q&A on the application of the UCITS V Directive (Directive 2014/91/EU).
12 June 2018 - NIS Directive implementation into Luxembourgish Law
The NIS Directive, Directive (EU) 2016/1148 published in the Official Journal in July 2016, was put forward as part of the effort to reinforce the cybersecurity strategy of the EU.
The joint circular BCL 2014/237 CCSF/588 is addressed to all regulated investment funds, i.e. funds that must be authorized by the CSSF. However, the regulation ECB/2013/38 also addresses non-regulated alternative investment funds (funds not under the AIFMD).
1 June 2018 - Depositaries: Clarifications on oversight obligations
On 17 May 2018, ALFI and ABBL issued a revised version of the Guidelines and recommendations for depositaries with the aim to cover UCITS, as well as improving certain sections of the initial guidelines published in July 2013.
31 May 2018 - Important update UCITS/AIF depositary rules
The European Commission (EC) publishes drafts amending Delegated Regulation (EU) No 2016/438 and Delegated Regulation (EU) No 231/2013 with regard to safe-keeping duties of depositaries.
29 May 2018 - Reporting template for managers of Money Market Funds (MMFs)
On 15 May 2018, an Implementing Regulation laying down the technical standards with which Money Market Funds (MMFs) shall comply when reporting to competent authorities was published in the Official Journal of the EU.
25 May 2018 - Sustainability enters into MiFID II Suitability
Building on international trends, the COP (21, 22) and the Paris agreement on climate change, the European Commission is developing initiatives in green and sustainable finance.
18 May 2018 - MiFID II in Luxembourg: The law has been voted on
On 15 May 2018, The Chambre des Députés voted on the law transposing MIFID II (the EU Markets in Financial Instruments) into the Luxembourg legal framework.
9 May 2018 - FSB's toolkit to mitigate misconduct risk
Within its work plan aimed at developing measures to reduce misconduct risks in the marketplace, on 20 April the Financial Stability Board (FSB) published a toolkit for firms and supervisors with suggested ways on how best to mitigate it.
SAFE 24 April 2018 - In order to actively support qualified domestic institutions in carrying various type of outbound investments, the State Administration of Foreign Exchange (“SAFE”) has been launching since 2013 the “Qualified Domestic Limited Partner” (“QDLP”) and the “Qualified Domestic Investment Enterprise” (“QDIE”) pilot programs, in Shanghai and Shenzhen respectively.
8 May 2018 - AML Access of centralized bank account registries
On 17 April 2018, the European Commission adopted a proposal to repeal the European Council Decision 2000/642/JHA, laying down rules facilitating the use of financial and other information for the prevention, detection, investigation, or prosecution of certain criminal offences.
7 May 2018 - Publication of the Benchmark and PRIIPs Laws in the Official Journal of Luxembourg
On 17 April 2018, the Benchmark Law has been published in the Luxembourg official Gazette (Journal officiel Mémorial A). Following this publication, it entered into force on 23 April 2018 (to the exception of the provisions relating to the insurance law, which are not addressed in this alert, and will be effective on 1 July 2018).
The Securities Financing Transaction Regulation (SFTR, (EU) 2015/2365) is the latest part of a sequel of the Financial Stability Board (FSB) and European Systemic Risk Board (ESRB) to mitigate the risks and increase transparency in the use of securities financing and reuse.
On 5 July 2016, the European Commission adopted a proposal to amend the Directive (EU) 2015/849, on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing.
13 April 2018 - Brexit: Political agreement on a transition period – Key take away
The EU Chief negotiator Michel Barnier announced an agreement in principle on the details of a Brexit transition period with the UK on 19 March 2018.
11 April 2018 - Guidelines on internalised settlement reporting under Article 9 of CSDR
According to Article 9(1) of CSDR, settlement internalisers shall report on a quarterly basis to the competent authorities of their place of establishment the aggregated volume and value of all securities transactions that they settle outside securities settlement systems.
6 April 2018 - ESMA publishes its first report based on AIFMD reporting
On 20 March 2018, ESMA published its report on trends, risk and vulnerabilities, where they discuss the main trends and risks of the current fund reporting environment.
19 March 2018 - Liquidity Risk Management – IOSCO and ERSB recommendations for open-ended funds
In February 2018, IOSCO published its report on good practices and issues for consideration regarding liquidity risk management for open-ended funds.
13 March 2018 - Sustainable finance
On 8 March 2018, the European Commission published its action plan for a greener and cleaner economy. It sets out a roadmap for further work combining legislative and non-legislative actions for the financial sector to support the transition to the low-carbon economy.
13 March 2018 - Brexit: Draft Withdrawal Agreement between the European Union and the United Kingdom
On 28 February, the European Commission published the draft Withdrawal Agreement between the European Union and the United Kingdom.
The changes introduced concerns about the completion of the post-UCITS V regulatory transition regarding depositaries for undertakings for collective investment governed by the Part II of the UCI Law.
5 March 2018 - Regulatory updates on cryptocurrencies
On 1 December 2017, the US regulator authorized the exchange of derivative instruments where the underlying is based on the Bitcoin cryptocurrency on three different financial platforms
1 March 2018 - Mortgage credit intermediary
On 12 February 2018, the Commission de Surveillance du Secteur Financier (CSSF) published a new application to extend the investment firm authorization to the status of mortgage credit intermediary
On 6 February 2018, the Chamber of Deputies adopted the first constitutional vote on the draft bill 7024 implementing interchange fee regulation into Luxembourgish Law and amending professional secrecy obligations for the financial sector.
23 February 2018 - Article EU Commission Brexit note 8 February – MIFID II, Markets and Derivatives
Until the end of a potential transition period, UK MiFID firms will forego their right to access the remaining EU investors. UK will become a third country; therefore, UK firms will no longer be able to freely access EU markets on the current basis.
On 8 February 2018, the EU Commission released several papers, among which, three addressed specifically to banks, MiFID firms, and investment managers of both UCITS and AIFs. All three papers are official notices that highlight the expected impacts of Brexit on various financial business activities.
23 February 2018 - Brexit: News EU Commission note 8 February – Banks
On 8 February 2018, the EU Commission released several papers, among which, three addressed specifically to banks, MIFID firms, and investment managers of both UCITS/AIF Funds. These three papers are an official notice that attempts to anticipate the expected impacts of Brexit on financial business activities.
On 23 January 2018, the European Commission launched an impact assessment on a new initiative aiming at enabling a regulatory framework for the development of sovereign bond-backed securities (SBBS).
6 February 2018 - ESMA consultation on CFD and Binary options
This consultation, should it go through, would mark the first use of MIFID II Article 40 allowing Supervisory Authorities to suspend or restrict the access of some financial instruments to investors.
On 20 December the PRA presented its overall approach for UK branches of international banks
29 January 2018 - AIFM: Update on the application questionnaire for the setup
On 16 January, the Commission de Surveillance du Secteur Financier (CSSF) published an updated version of its application form for the set-up of a fully licensed alternative investment fund manager.
The Luxembourg regulator, the CSSF, announced a policy change for investment by UCITS in other UCIs under Article 41(1)(e) of the Luxembourg Law of 17 December 2010 (the “Law”) via press release 18/02.
23 February 2018 - Brexit: News EU Commission note 8 February – Banks
On 8 February 2018, the EU Commission released several papers, among which, three addressed specifically to banks, MIFID firms, and investment managers of both UCITS/AIF Funds. These three papers are an official notice that attempts to anticipate the expected impacts of Brexit on financial business activities.
