LexGo

CSSF publishes two important texts on the provision of investment services in Luxembourg by third country investment firms
06/07/2020

On 2 July 2020, the Commission de Surveillance du Secteur Financier (the “CSSF”) published two important texts for third country firms providing investment services or the carrying out of activities and ancillary services in Luxembourg:

  • CSSF regulation n°20-02 (the “Regulation”); and
  • CSSF circular letter n°20/743 (the “Circular”).

The Circular

The Circular amends the existing CSSF circular letter 19/716 on the provision in Luxembourg of investment services or performance of investment activities and ancillary services in accordance with Article 32-1 of the amended law of 5 April 1993 on the financial sector (the “LFS”).

More specifically, the Circular details the criteria under which the provision of investment services by third country firms is considered to be provided in Luxembourg under Article 32-1 (1) second paragraph of the LFS:

  • the third country firm is established in Luxembourg; or
  • the third country firm provides an investment service to a retail client established or located in Luxembourg; or
  • the place for the provision of the characteristic performance of the service is Luxembourg.

Pursuant to the above, a third country firm may fall outside the scope of application of Article 32-1 (1) second paragraph of the LFS where, even though services are provided to a client established or located in Luxembourg (apart from retail clients), the service may be considered as not being provided in Luxembourg.

The above described amendment, effective as of 1 July 2020, opens slightly the door to third country firms which may be most welcome for undertakings established in the United Kingdom in the current Brexit context. 

The Regulation

The Regulation in turn provides for a list of countries that are considered by the CSSF as having equivalent supervisory and authorization rules as those set out under the LFS for the purpose of Article 32-1(1) second paragraph of the LFS.

The following six jurisdictions are deemed equivalent:

  • Canada
  • Switzerland
  • United States of America
  • Japan
  • Hong Kong
  • Singapore

The Circular and the Regulation are accessible under the following links (only in French for now):

CSSF Circular n° 20/743: https://www.cssf.lu/wp-content/uploads/cssf20_743.pdf
CSSF Regulation 20-02: http://data.legilux.public.lu/file/eli-etat-leg-rcsf-2020-06-29-a563-jo-fr-pdf.pdf.

Zie ook : CMS Luxembourg ( Mrs. Aurélia Viémont )

[+ http://www.cms-db.com]

Mrs. Aurélia Viémont Mrs. Aurélia Viémont
Counsel
[email protected]

Alle artikels Bank -en Krediet recht

Laatste artikels Bank -en Krediet recht

Application of MiFID to Luxembourg IFMs
11/06/2021

The CSSF clarifies under what circumstances and the extent to which MiFID rules apply to IFMs, their third-party delegates...

Application of MiFID to Luxembourg IFMs Read more

Modernisation of the Law of 22 March 2004 on securitisation
03/06/2021

A draft Bill of law No. 7825 (the “Bill”) amending the Law of 22 March 2004 on securitisation (the “Secu...

Modernisation of the Law of 22 March 2004 on securitisation Read more

Implementation of new EU framework relating to covered bonds
02/06/2021

A draft bill (7822/00) relating to the issuance of covered bonds was recently deposited to implement EU Directive 2019/216...

Read more

Bill amending the Luxembourg Securitisation Act published
28/05/2021

Bill No 7825 (the Bill), which aims, amongst other things, to amend the Act of 2 March 2004 on securitisation, as ame...

Read more

Laatste artikels van Mrs. Aurélia Viémont

Key changes introduced by the Luxembourg law of 25 February 2021
02/03/2021

The Luxembourg Parliament has adopted a law of 25 February 2021 (the “Law”) which notably amends the law of 12...

Read more

CSSF launches its 2020 survey collecting standardised key information concerning money laundering...
02/02/2021

On 27 January 2021, the Luxembourg supervisory authority for the financial sector, the Commission de Surveillance du ...

Read more

Issuance and settlement of securities directly on blockchain: now a reality in Luxembourg
28/01/2021

Last summer in one of our e-alerts, we shared our insights on the key features of the bill of law n°7637 all...

Read more

With the implementation of SFDR approaching, the CSSF sets-up a fast track procedure
22/12/2020

With less less than 3 months to go until the Sustainable Finance Disclosure Regulation (“SFDR”) comes int...

Read more

LexGO Network