LexGo

Loan origination - CSSF guidance on private lending
22/07/2021

On 15 June 2021, the Luxembourg Financial Sector Supervisory Authority (the CSSF) updated its FAQs on the statuses of the Professionals of the Financial Sector (PSFs) by issuing clarifications on lending activities falling out of scope of the authorisation requirement, laid down by article 28-4 of the Law on Financial Sector (the LFS)[1].

As a general rule under article 28-4 of the LFS, professionals (other than credit institutions) performing lending operations are those who "engage in the business of granting loans to the public for their own account".

As the notion of "public" is not legally defined, the CSSF stated that it will not consider professional lending activities as public-oriented, should the following conditions be met:

  • loans are granted to a limited circle of previously determined persons (as opposed to a multitude of non-identifiable persons)[2];
  • the nominal value of the loan amount is at least EUR 3,000 (or an equivalent in another currency); and
  • loans are granted solely to professionals, as defined in the Luxembourg Consumer code[3].
  • Further to the above, the professional character of the credit activity will be assessed based on whether it is performed repetitively, with the exclusion of one-off operations.

Finally, the CSSF has highlighted the non-application of the article 28-4 of the LFS to professionals carrying out activities whose taking up and pursuit are governed by special laws, including notably UCIs, SIFs, pension funds, SICARs and securitisation undertakings.

 

[1] Law of 5 April 1993 on the financial sector, as amended.

[2] Applicable also if granted through a Luxembourg SPV by an entity holding 100% or having (in)direct control over it.

[3] Any natural or legal person, public or private, who acts, including through an intermediary acting in his name or on his behalf, for the purposes falling within the scope of his commercial, industrial, artisanal or liberal activity.

Zie ook : Ogier ( Anne-GaĆ«lle Delabye ,  Mr. BenoĆ®t Rose )

[+ http://www.ogier.com]

 Anne-Gaƫlle Delabye Anne-Gaƫlle Delabye
Partner
[email protected]
Mr. BenoƮt Rose Mr. BenoƮt Rose
Partner
[email protected]

Click here to see the ad(s)
Alle artikels Bank -en Krediet recht

Laatste artikels Bank -en Krediet recht

Comparability of Investment Funds ā€“ another Finnish referral to the Court of Justice of the Eur...
22/10/2021

Recently, an Advocate General’s opinion (the “Opinion”) on Finnish CJEU case C-342/20 (the “Case&r...

Comparability of Investment Funds ā€“ another Finnish referral to the Court of Justice of the European Union ā€“ another positive signal Read more

New rules on material IT outsourcing in the financial sector
15/10/2021

Effective 15 October 2021, financial institutions must notify the CSSF of any planned outsourcing of material IT activitie...

Read more

Payments services and e-money | New delegated regulation
15/10/2021

On 28 September 2021, the Commission Delegated Regulation (EU) 2021/1722 of 18 June 2021 (the “Regulation”), s...

Payments services and e-money | New delegated regulation Read more

Performance fees: the CSSF digitalises data collection
12/10/2021

Investment fund managers must report to the CSSF on the performance fee models used by all Luxembourg UCITS and AIFs that ...

Performance fees: the CSSF digitalises data collection Read more

Laatste artikels van Anne-Gaƫlle Delabye

Parallel structures: the Luxembourg solution
02/02/2021

Parallel investment funds have increasingly become a preferred structure for sophisticated private equity fund managers se...

Read more

CSSF fast-track procedure for fund managers to comply with SFDR disclosure rules
04/01/2021

The Commission de Surveillance du Secteur Financier (the CSSF), has issued a communication (the CSSF C...

Read more

FCA communication to Luxembourg-based entities about the UK temporary permissions regime
23/11/2020

On 19 November 2020 the Luxembourg supervisory authority for the financial sector, the CSSF, issued press release 20/...

Read more

CSSF on mandatory notifications in a no-deal Brexit context
18/07/2019

Following the publication of Luxembourg laws of 8 April 2019[1] (see our previous briefing here), the Luxembourg...

Read more

Laatste artikels van Mr. BenoƮt Rose

CSSF: Marketing of Foreign UCIs other than the closed-ended type to retail investors in Luxembourg
28/01/2021

On 23 December 2020, the Luxembourg financial sector supervisory authority (the CSSF) published the Regulation N°...

Read more

CSSF: ESMA guidelines on liquidity stress testing in UCITS and AIFs
09/10/2020

In the midst of the COVID-19 crisis, liquidity risk management is certainly a topical question, as it is meant to prepare ...

Read more

Luxembourg becomes first European country to launch a sustainability bond framework
21/09/2020

The Luxembourg Ministry of Finance announced on 2 September 2020 that the country had become the first European country to...

Read more

CSSF prohibition of loan investments for UCITS
27/08/2020

On 7 August 2020, the Luxembourg supervisory authority for the financial sector, the CSSF, updated its frequently asked qu...

Read more

LexGO Network