Luxembourg: Financial Services

The European Securities and Markets Authority has issued new supervisory guidance on triangular passporting under MiFID II, addressing how authorized entities can use branches or tied agents in one host Member State to provide investment services in another. This briefing establishes principles to prevent regulatory arbitrage while clarifying supervisory responsibilities among national competent authorities across multiple jurisdictions.

Luxembourg's financial regulator, the CSSF, has established rigorous standards for crypto-asset service providers seeking market access under MiCAR, with particular emphasis on operational substance...

Part II UCIs provide North American fund managers with a regulated Luxembourg vehicle to access international private wealth markets through a flexible, company-style fund structure.

The Luxembourg government has filed a bill of law proposing targeted amendments to the country's securitisation framework, building on 2022 reforms to address evolving market practices. The proposed changes focus on expanding financing methods, strengthening insolvency protections, enabling compartment-to-compartment investments, broadening security package flexibility, refining active management rules, and clarifying statutory subordination provisions for securitisation vehicles.

EU fund managers are increasingly opting to establish their own Luxembourg-based licensed entities to manage European private funds, known as authorised alternative investment fund managers (AIFMs). This Q&A addresses the practical considerations and key questions that arise when choosing between an in-house AIFM controlled by the fund manager versus engaging a third-party Luxembourg AIFM.

The Luxembourg Stock Exchange has introduced EM3S, a professional market segment that enables investment funds to achieve the institutional credibility of a Luxembourg listing while maintaining confidentiality over sensitive fund documentation.

If an EU alternative investment fund manager (EU AIFM) classifies a fund under management as open-ended, it triggers the need to implement a robust liquidity management framework.

In January 2022, we published a client alert examining the initial FAQ issued by Luxembourg’s financial sector regulator—the Commission de Surveillance du Secteur Financier—on the use of what it then called “virtual assets” by investment funds and credit institutions.

The financial services industry has always been at the forefront of technological adoption, from the early days of electronic trading to the current wave of artificial intelligence.