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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.