Modernisation of the licensing process in the financial and insurance sectors
On 26 July 2021, the Luxembourg law of 21 July 2021 which empowers the CSSF or the Commissariat aux Assurances, as applicable, to grant or withdraw a licence to a regulated entity, instead of the Minister of Finance, was published in the Luxembourg official journal (Mémorial A).
This new law entered into force on 30 July 2021. For additional information on the new law, check out our previous newsletter on the draft law.
New prudential regime for investment firms
On 26 June 2021, Directive (EU) 2019/2034 of 27 November 2019 on the prudential supervision of investment firms (the "IFD ") and Regulation (EU) 2019/2033 of 27 November 2019 on the prudential requirements of investment firms (the "IFR ") introduced a new prudential regime for investment firms at EU level.
On 26 July 2021, another Luxembourg law of 21 July 2021 was published, which law transposed inter alia the IFD into Luxembourg national law and implemented some aspects of the IFR, by making significant amendments to the Luxembourg law of 5 April 1993 on the financial sector, as amended (“LFS").
This new law entered into force on 31 July 2021, except that:
- certain provisions changing the scope of the LFS will only apply from 1 January 2022; and
- the implementing provision regarding Regulation (EU) No. 2020/1503 on European crowdfunding service providers for business, will only enter into force on 10 November 2021.
Check out our previous newsletter article on the draft law.