New CSSF fees

On 22 December 2021, a new Grand Ducal Regulation on the fees levied by the CSSF was published in the Mémorial A. It applies as from 1st January 2022.

With the aim of aligning and adjusting the fees collected by the CSSF to suit the evolution of the legal framework, the new Grand Ducal Regulation increases existing fees, and introduces new fees applicable to institutions and entities under CSSF supervision. Overall, for the two sectors discussed below, this new Grand Ducal Regulation increases the rates applied by the CSSF by 10%-15% approximately.

This newsflash only focuses on the fees to be levied in the following two sectors:

1. Investment fund sector

Alongside the measured increase (referred to above) in the fees applicable to Luxembourg and foreign undertakings for collective investment, pension funds and securitisation undertakings, a number of new fees will apply going forward, in particular to investment fund managers (IFMs).

Henceforth a new distinction will be made as regards the examination fee:

  • on the one hand, between IFMs performing only collective management and exercising (for AIFMs only) a core investment strategy (RGD p6) versus
  • on the other hand, IFMs carrying out any additional investment strategy and/or activity (RGD p6).

While the examination fees charged in respect of IFMs performing only collective management and carrying out a core strategy remain unchanged, additional fees (RGD p6-7) will be levied for IFMs submitting an application for authorisation to:

  • perform any investment strategy exceeding the initial core investment strategy;
  • provide central administration and/or registrar and transfer agent services in line with Annex II of the law of 17 December 2010 on UCIs and/or Annex I of the law of 12 July 2013 on AIFMs;
  • provide one or several MiFID services under a top-up license.

Similarly, new annual flat fees (RGD p7-8) have been introduced covering the above activities.

2. Banking and financial sector

While the Grand Ducal Regulation generally applies steady increases in most fee rates, it significantly increases the flat rate for processing a request for approval of a new credit institution (from €15,000 to €50,000).

Some new fees have also been introduced, namely for:

  • each branch established in a country of the European Economic Area;
  • financial holding companies and mixed financial holding companies, following the entry into force of the law of 20 May 2021;
  • prudential supervision of investment firms, services and activities, in accordance with the entry into force of the law of 21 July 2021;
  • monitoring of the new merged status of support PFS of ‘operators of computer systems and communication networks in the financial sector’ according to Article 15 of the law of 21 July 2021;
  • new account information service providers, according to the new status introduced by the amendment made in 2018 to the law of 10 November 2009 (implementation of Directive (EU) 2015/2366 – the Second Payment Services Directive).

For more information on the CSSF fee rates applicable to the Investment Fund sector and the Banking and Financial sector, please liaise with your usual contacts on the Fund Formation and Banking Teams.

To access the Grand Ducal Regulation, click here_