China and Australia considered as equivalent jurisdictions by the CSSF

On 22 July 2022, the CSSF published CSSF Regulation n°22-04 dated 20 July 2022 modifying CSSF Regulation n°20-02 on the equivalence of certain third countries as regards supervision and authorisation rules for the provision of investment services or the exercise of investment activities and ancillary services by third country firms.

The list published by the CSSF in CSSF Regulation n° 22-04 includes:

• Canada;
• Switzerland;
• United States;
• Japan;
• Hong Kong;
• Singapore;
• United Kingdom;
• China; and
• Australia.

The United Kingdom was added to the list on 1 January 2021 following its exit from the European Union while the other jurisdictions were on the list from the outset since 1 July 2020. To see our previous article on this topic, click here.

As for the other listed jurisdictions, Chinese and Australian firms can now officially apply for the Luxembourg National Equivalence Regime for the purpose of providing MiFID investment services or activities in Luxembourg on a cross-border basis.

For more information on the National Equivalence Regime, see here.

To benefit from this regime, a third-country firm must submit a complete application file to the CSSF. In addition to a form containing all the information on the company, the company must also attach at least a detailed description of the activities carried out in the country of origin and those planned or carried out in Luxembourg, as well as all useful information and supporting documents.

This means that Chinese and Australian firms will be able to carry out these activities as well as ancillary services¹ in Luxembourg to eligible counterparties² and per se professional clients³ without requiring an establishment or licence in Luxembourg, what we now know as the Luxembourg National Equivalence Regime.

Chinese and Australian firms who wish to provide MiFID services in Luxembourg should assess whether they will need to submit an application as soon as possible. For more information, please contact your Luxembourg team.

¹ any service or activity referred to in Section A and C of Annex II to the 1993 Law and relating to one of the financial instruments listed in Section B of Annex II to the same Law
² a customer classified or recognised as an eligible counterparty in accordance with Article 37-7 of the 1993 Law
³ a client who, at his or her own request, is treated as a professional client in accordance with Section B of Annex III to the 1993 Law