On 31 January 2020, the Commission de Surveillance du Secteur Financier (“CSSF”) has published a press release in which it indicates that the CSSF’s individual decisions granting the 12-month transitional regime to United Kingdom (“UK”) entities and notifications made in that context through the dedicated eDesk portals are lapsing.
Indeed, this transitional regime was organised to ensure that UK entities providing financial services in Luxembourg under the EU passport would be able to continue their activities for a limited period in the event of the UK leaving the EU without concluding a withdrawal agreement.
Following the formal adoption of the withdrawal agreement by the Council of the European Union, a transition period will apply from 1 February 2020 until 31 December 2020 during which EU laws and regulations will continue to apply in the UK and UK entities may therefore continue to carry out their activities in Luxembourg on the basis of their passporting rights.
The CSSF calls for UK impacted entities to prepare and anticipate beyond the end of the transition period, i.e. 31 December 2020.