The Law of 5 April 1993 on the financial sector (hereinafter referred as the “Law”) has been subject to important changes since the votation of the Law of 21st July 2021 and issuance of the CSSF circular 21/784, specifically regarding the Investment Firms licenses and reporting requirements. This document is summarizing the main changes.
Introduction
The CSSF circular 21/784 issued by the CSSF is providing detailed information on the reporting requirements applicable to all investment firms active in Luxembourg.
After the CRR-CRD package for banks, The new regulatory framework called “IFD package” and composed by the application of directive EU 2019/2034 and the entry into force of the European Regulation 2019/2033 is now providing an harmonized set or requirements for Investment firms.
In addition to the IFD package, the Circular is referring to the “Reporting Handbook for Investment Firms” issued by the CSSF which is detailing the requirements related to the IFR (Investment Firm Reporting) for non systematic Investment firms. It should be noted that the systematic Investment firms will have to comply with the banking framework (CRR/CRD package).
In practice, the reporting for Investment firms will therefore rely on two components :
- The IFR reporting, relying on the technical specifications of the EBA
- The national reporting, relying on the technical specifications of the CSSF as set out in the circular CSSF 05/187 as amended by the circular CSSF 10/433;
The present document is focusing on the IFR reporting.
IFR reporting for Non systematic Investment firms
In accordance with the IFR package, the Investment firms active in the European area will be subject to a classification composed of 3 typologies :
1- Small and non‐interconnected investment firms (Class 3 IF article 12 IFR ) – First reporting 31/12/2021 and annual reporting (1st remittance date 11 February 2022);
2- Other than Small and non‐interconnected investment firms (Class 2 IF )/ are subject to the reporting requirements for the period of 30 September 2021 and to a quarterly reporting (1st remittance date 11th November 2021);
3- Large Investment firms systemically important which are out of scope of application of the IFR reporting (Class 1 IF – banking framework credit institutions applicable);
Branches in Luxembourg of investment firms whose head office is located in another EU Member State are not subject to the IFR reporting requirements.
Investment firms shall prepare the IFR reporting on an individual basis and, if applicable, on a consolidated basis.
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