Euroshore - Spotlight: Luxembourg

Modifications in the CSSF regime related to material IT outsourcing

In order to face the continuing development of material IT outsourcing, the CSSF has simplified its procedures.

Covid 19 impact on large redemptions in Lux investment funds

The CSSF has published a working paper on the impact of COVID-19 on large redemptions in the Luxembourg investment fund market.

Performance fee model declarations via new eDesk

Investment Fund Managers (IFMs) are requested by CSSF for Luxembourg based UCITS or AIFs they manage to complete a dedicated questionnaire on performance fees via the launch of a new eDesk module on performance fees from 30 September 2021 onwards.

Extended mandatory use of IMAS Portal

In early 2021 the European Central Bank (ECB) and the national competent authorities (NCAs) launched the IMAS Portal (a digital gateway for initiating authorisation processes).

From 27 January 2021, the IMAS Portal became mandatory in Luxembourg for processing the fit and proper applications for all significant banks/groups under the Single Supervisory Mechanism.

As of 27 September 2021, the IMAS Portal has been extended to the processing of passporting notifications from significant banks/groups (SIs) and less significant banks/groups (LSIs) and applications for the acquisition or increase of a qualifying holding in an SI or LSI.

Prudential reporting

The CSSF published Circular CSSF 21/784 and a “Reporting Handbook for Investment Firms”, the purpose of which is to combine, in one single document, the details regarding the content of the periodic prudential reporting of investment firms, consisting of the new EU prudential reporting framework (IFR reporting and the national reporting), as well as the relevant technical specifications.

Recently published enforcement proceedings

The CSSF has recently published the following enforcement actions that it has taken:

UCITS

• Administrative sanction of EUR50,000 imposed on investment fund manager IFP Investment Management S.A for breaches of UCITS regulations

AML

• Administrative sanction of EUR67,600 imposed on investment fund manager Pharus Management Lux S.A for breach of AML rules
• Administrative reprimand imposed on PFS Stratego Trust S.A. for breach of AML rules
• Administrative sanction of EUR10,000 imposed on investment fund manager Federale Management S.A. for breach of AML rules
• Administrative sanction of EUR10,000 imposed on the alternative investment fund manager LIA Luxembourg Investment Advisors S.à r.l. for breach of AML rules

Transparency rules

• Administrative sanction of EUR15,000 imposed on Agate Assets S.A. for breach of issuer transparency requirements