On 21 May 2021, the Luxembourg law of 20 May 2021, transposing:
- Directive (EU) 2019/878 of 20 May 2019 amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures (“CRD V”); and
- Directive (EU) 2019/879 of 20 May 2019 amending Directive 2014/59/EU as regards the loss-absorbing and recapitalisation capacity of credit institutions and investment firms and Directive 98/26/EC (“BRRD II)”,
was published in Mémorial A No. 384 (the “Law”).
In a previous newsletter published on 15 October 2020, we have set out some of the highlights of the Law.
The Law brings substantial changes to the regulatory environment, including, inter alia, new minimum capital requirements applicable to all institutions subject to Directive 2013/36/EU (the so-called Capital Requirements Directive) and introduces new rules on systemic risk buffers and, among others, establishes the requirement for financial and mixed financial holding companies to be approved (or exempted from approval) by their consolidating supervisor (the consolidating supervisor in Luxembourg, as the case may be, being either the European Central Bank or the CSSF).
Please find the coordinated law of 5 April 1993 on the financial sector (French and English versions), including the changes brought about by the Law here.