General organisation

Executive Board secretariat

The department is responsible for:

  • receiving and transmitting the incoming post;
  • processing the requests from counterpart authorities based on cooperation and exchange of information agreements (such as MoUs);
  • dealing with the notifications that the CSSF receives or transmits as a home and host authority of credit institutions, payment institutions, investment firms and electronic money institutions;
  • managing the files regarding illicit financial activities, the warnings to the public and, in this context, the contact with judicial authorities;
  • preparing the CSSF's annual activity report.

General secretariat

The department is responsible for:

  • defining and implementing the internal and external information and communication policy of the CSSF;
  • coordinating the action of the CSSF's departments in the different communication fields (media relations, national and international institutions, associations, public relations, management of the website and information for the general public);
  • dealing with the questions relating to financial consumer protection, as well as those relating to microfinance and islamic finance;
  • analysing the qualification of activities of the financial sector;
  • promoting financial education whose objective is to provide the public with the required basis for a better understanding of financial concepts in order to raise awareness and publicising a responsible and efficient financial behaviour;
  • translating the published documents on the CSSF website (laws, regulations, circulars, annual report, communiqués etc.) and to prepare the CSSF newsletter published monthly.

PFS application guidance and regulation

The department receives the authorisation files of professionals of the financial sector (PFS) and handles prior and general questions relating thereto.

International affairs

The department is responsible for international relations and the general communication with foreign authorities regarding all domains for which the CSSF is competent. This mission includes the participation in EU and international meetings and working groups, which deal, among others, with investment funds.

Personnel, administration and finance

The department is responsbile for the management of the personnel, the internal administration, the management and security of the buildings and the financial management of the CSSF (including accounting and budget).

Legal departments

The legal department is divided into two independent departments, each in charge of specific legal issues and files.

   

Legal department "Consumer Protection/Financial Crime"

The department deals with questions involving entities supervised by the CSSF and relating to responsible conduct of business rules and financial consumer protection. The department is also in charge of resolving out-of-court disputes between professionals under the supervision of the CSSF and their customers. Furthermore, the mission of the department is to deal with issues regarding the fight against money laundering and terrorist financing (AML/CFT) as well as the application of international financial sanctions.

In the framework of the above-mentioned missions, the department drafts regulations and guidelines issued by the CSSF.

It also cooperates with national and international authorities as regards AML/CFT and represents the CSSF within international bodies.

    

Legal department "General Affairs"

The department deals with issues requiring the possible exercise of the CSSF's legal powers, including injunctions and sanctions and with files likely to be of a litigious (contentieux) or criminal (pénal) nature. In this area, it is in charge of and coordinates contacts with the judicial authorities and the external legal advisers of the CSSF.

It analyses general legal issues and assists the other departments in enforcement issues and in monitoring reforms and suggestions likely to enhance the legal and regulatory environment under the remit of the CSSF. Furthermore, it reviews the documentation the CSSF intends to issue in order to ensure the adequacy and consistency of the powers and sanctions enshrined therein.

At national and European level, it deals with the legal issues that arise in the context of the institutional reforms relating to the architecture of the financial sector supervisors. Moreover, the CSSF's library, which is part of the national network of Luxembourg libraries, is attached to this department.

Accounting, auditing and transparency

The department is in charge of: 

 

  • following up the regulations relating to accounting and financial and non-financial information to be published by entities of the financial sector and by listed companies, including participating actively in national and international groups, drafting comment letters in response to the draft International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and addressing the questions in this respect;
  • following up the national and international regulations relating to audit from a perspective of prudential supervision of entities of the financial sector, including participating actively in national and international groups, drafting of comment letters in response to draft International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB) and addressing the questions in this respect,
  • the procedure of recognition and subsequent assessment of the quality of the audit work of réviseurs d’entreprises agréés (REA) (approved statutory auditors) and cabinets de revision agréés (CRA) (approved audit firms) for statutory audit supervised entities of the financial sector. This task is part of the CSSF’s mission as supervisory authority of the financial sector and is separate from and complementary to the mission  of public oversight which the CSSF is also invested with;
  • following up the national and international regulations relating to the information to be published by institutions in accordance with Part Eight of the CRR (“transparency”) and addressing the questions in this respect.

Innovation, payments, markets infrastructures and governance

The department IPIG is in charge of the financial innovation, payment services, markets infrastructures and general and transversal aspects relating to governance and remuneration in the financial sector. 

The department covers:

  • all aspects relating to financial innovation; authorisation and supervision of payment institutions and electronic money institutions, as well as all issues of interpretation as regards payment services and electronic money;
  • authorisation and supervision of the central securities depositories established in Luxembourg; supervision and enforcement of the EMIR obligations;
  • assistance to ESMA with respect to the entities supervised by ESMA;
  • follow-up on international issues relating to market infrastructures;
  • monitoring of remuneration policies and practices in the financial sector;
  • general aspects relating to governance.

The department is the privileged interlocutor of the financial sector for the matters within its remit, such as the representation of the CSSF in conferences aiming at raising the awareness in the sector of international and national regulatory developments.

 

 

On-site inspection

The department is in charge of:

  • planning, coordinating, and, in part, following-up on all the on-site inspections carried out by the CSSF of banks, investment firms, specialised PFS, support PFS, pension funds and financial market participants, in cooperation with the supervisory departments;
  • carrying out on-site inspections, notably in the area of "Anti-money laundering and counter-terrorist financing" (AML/CFT), "Corporate Governance", "Depositary Bank function", "Central Administration function", "IRRBB", "Credit Risk", "Operational Risk" and "MiFID", as well as "ad hoc" on-site inspections involving several supervisory departments.

Single Supervisory Mechanism (SSM)

The department is in charge of:

  • managing the role of the CSSF as member of the new EU framework for the prudential supervision of banks (SSM) under the aegis of the European Central Bank (ECB) and to follow the work of the European Banking Authority (EBA) and the European Systemic Risk Board (ESRB) in this context;
  • coordinating, among others, the CSSF's contribution to the drafting of the regulations and to the later functioning of the SSM through committees and ECB's working groups and cooperating with the Banque Centrale du Luxembourg in this context;
  • ensuring a regulatory and coordinating mission for the regulation of banks at national and international level.

Resolution

The general mission of the department Resolution is to take on the duties and responsibilities incumbent upon the resolution authority and which arise from Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms and Regulation (EU) No 806/2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund.

It is thus, in particular, competent to: 

  • adopt resolution plans and assess resolvability;
  • remove impediments to resolvability;
  • appoint a special manager;
  • set the level of minimum requirement for own funds and eligible liabilities;
  • adopt resolution decisions and apply resolution tools, in accordance with the relevant procedures and safeguards;
  • write down or convert relevant capital instruments;
  • execute the instructions issued by the Single Resolution Board. 

Moreover, the department Resolution represents the CSSF within the colleges of resolution authorities and at the Single Resolution Board and the Resolution Committee with the EBA.

Depositor and Investor Protection

Following the entry into force of the Law of 18 December 2015 on the failure of credit institutions and certain investment firms, the duties of the Association pour la Garantie des Dépôts, Luxembourg (Deposit Guarantee Association, Luxembourg, AGDL) were taken over by the Fonds de Garantie des Dépôts Luxembourg (Deposit Guarantee Fund, Luxembourg, FGDL) and the Système d’Indemnisation des Investisseurs Luxembourg (Investor Compensation Scheme, Luxembourg, SIIL). The FGDL and the SIIL are administered and managed by the Council for the Protection of Depositors and Investors (CPDI), a CSSF body whose members are the Director of the CSSF in charge of banking supervision, the Director of the Treasury, the Director General of the Banque Centrale du Luxembourg, the Director of the Luxembourg Bankers' Association and a magistrate appointed by the Grand Duke on the proposal of the Government in Council. The department “Depositor and Investor Protection” carries out operational tasks related to the duties of the CPDI. Among others:

  • it assists the CPDI in the calculation and collection of contributions to be paid to the FGDL by the member institutions;
  • it ensures the sound functioning of the depositor and investor compensation scheme;
  • it contributes to the drawing-up of opinions and technical standards on deposit guarantee and investor compensation within the working groups of the European Banking Authority.

 

 

Supervision of banks

The department is responsible for:

  • the prudential supervision of credit institutions (status of universal bank) incorporated under Luxembourg law, including their branches established abroad, banks issuing covered bonds, branches of foreign banks having their registered office outside the EU, branches of banks originating from the EU pursuant to the European provisions relating to the single market in financial services; 
  • compliance by the institutions with the quantitative and qualitative standards, as well as the legal and regulatory provisions and the standards applicable in this field;
  • the analysis of the periodical financial information that banks are required to submit, the on-site inspections and the analysis of the reports and evaluations transmitted by internal auditors and the réviseurs d'entreprises agréés (approved statutory auditors);
  • the methodology, monitoring and assistance related to risk management.

Supervision of investment firms

In addition to its supervisory mission on a consolidated basis, the department is in charge of the supervision of investment firms based on the analysis of the periodical financial information that they are due to submit to the CSSF, the on-site inspections and on the analysis of the comments and assessments provided by the réviseurs d'entreprises agréés (approved statutory auditors) and internal auditors of investment firms.

Supervision of specialised PFS

The department is in charge of:

  • the prudential supervision of the professionals listed in Articles 25 to 28-10 of the Law of 5 April 1993 on the financial sector; 

  • PFS authorised on the basis of general provisions;
  • financial postal services provided by the Entreprise des Postes et Télécommunications;
  • analysing the periodical financial information that the professionals are due to submit to the CSSF;
  • the on-site inspections and on the analysis of the comments and assessments provided by the réviseurs d'entreprises agréés (approved statutory auditors) and internal auditors of PFS.

UCI departments

Department "International, regulation and enforcement"

The department follows the international regulations as regards UCIs, management companies and alternative investment fund managers and it represents the CSSF in international fora and groups which are active in this area. Moreover, the department coordinates the interpretation of the legal aspects and takes part in the preparation of new legal texts and CSSF circulars as regards UCIs. Finally, the department is in charge of the complaints and enforcement procedures.

 

Department "Authorisation and supervision of undertakings for collective investment in transferable securities and pension funds" 

The department is responsible for:

  • reviewing applications for registration on the list of UCITS subject to Part I of the Law of 17 December 2010 relating undertakings for collective investment (the "UCI Law") and pension funds subject to the Law of 13 July 2005 on institutions for occupational retirement provision in the form of pension savings companies with variable capital and pension savings associations;  
  • processing of applications for authorisation of additional compartments for UCITS and pension funds;
  • the permanent supervision of UCITS subject to the UCI Law by processing notices of changes carried out in the UCITS registered on the list and subject to Part I of the UCI Law and the supervision of pension funds;
  • handling notification requests of UCITS with the competent authorities of another EU Member State for the purposes of marketing Luxembourg UCITS in this State;
  • population and maintenance of the UCI central database;
  • the follow-up of UCIs/pension funds in liquidation.

 

Department "Authorisation and supervision of alternative investment funds" 

The department is responsible for:

  • authorising and supervising alternative investment funds governed by Luxembourg law ("AIFs") subject to Part II of the 2010 Law, Part II of the SIF Law and Part II of the SICAR Law;
  • authorising and supervising SIFs and SICARs not qualified as AIFs.

    

Department "Authorisation and supervision of investment fund managers and securitisation undertakings"

The department is responsible for:

  • processing applications for authorisation and supervision of investment fund managers (IFMs), i.e. management companies (hereinafter “ManCo”) subject to Chapters 15, 16, 17 and 18 of the 2010 Law and alternative investment fund managers (hereinafter “AIFM”) subject to the AIFM Law;
  • processing applications for authorisation and supervision of securitisation undertakings as well as processing applications for authorisation of fiduciary-representatives within the meaning of this law; 
  • processing applications for authorisation of changes made to supervised entities during their life; 
  • entering data and maintaining the UCI departments' database for the prudential supervision of IFMs, regulated investment funds, securitisation undertakings and other supervised entities involved with them.

  

Department "Prudential supervision and risk management"

The department is responsible for:

  • the prudential supervision in relation to the undertakings for collective investment (UCIs) governed by the UCI Law and SIF Law based on the analysis of the financial reports, the reports and evaluations provided by the réviseurs d’entreprises agréés and the statements made in relation to Circular CSSF 02/77 as well as on the conduct of on-site inspections;
  • the assessment of the risk management methods implemented by UCIs, management companies and managers of alternative investment funds based both on the risk management procedures transmitted to the CSSF and on the on-site inspections;
  • the macro-prudential supervision in relation to Luxembourg UCIs.  

        

Department "Coordination of the UCI departments' specific IT tools" (UCI SI)

The department is responsible for: 

  • initialising, planning, coordinating and managing the IT requests and projects of all UCI departments;

  • assisting the UCI departments in harmonising their internal tasks and in relation to their reports with intermediaries;

  • projects in relation to the maintenance of electronic document management systems as well as for applications which relate to the CSSF's databases, and their functional development according to the needs expressed by the UCI departments;

  • the transmission channels in cooperation with the IT department ("SYS") of the CSSF.

    

Department "UCI operations"

The department is in charge of:

  • the administrative support and mail management of the UCI departments;collecting taxes relating to the UCI departments;

  • handling notification requests with the competent authorities of another EU Member State;

  • populating and maintaining the UCI departments' database;

  • following up UCIs in liquidation;

  • receiving the legal reporting, performing controls at reception and following-up on quality, and acting as a contact point for senders;

  • exploiting the UCI departments' database for statistical and prudential purposes;

  • analysing, rationalising and optimising the work flows and processes of the UCI departments;

  • maintaining the procedures manual andmanaging and administering the knowledge database of the UCI departments. 

   

Department "UCI on-site inspections"

The department is responsible for:  

  • co-ordinating and following up all the OSIs conducted within the UCI departments;

  • preparing, carrying out and following up OSIs at management companies, alternative investment fund managers and investment vehicles according to a long-term control plan using a risk-based approach;

  • carrying out OSIs for the UCI departments, on an ad hoc basis, upon the Executive Board's request.

Supervision of securities markets departments

Supervision of securities markets departments consists of two independent departments.

 

Department "MAF-I"

The department MAF-I is responsible for:

  • the approval of prospectuses concerning securities offered to the public and/or admitted to trading on a regulated market and the control tasks in relation to these prospectuses;
  • the verification of compliance of financial information prepared by issuers of listed securities;
  • the work related to the monitoring and application of international and national regulations relating to the tasks of the department; as well as
  • the work at international level in relation to the indices used as benchmarks. 

Department "MAF-II"

The department MAF-II is responsible for:

  • the supervision of markets of financial instruments and market operators, as well as international and national investigations regarding stock market offences in cooperation with the foreign competent authorities;
  • the supervision of Société de la Bourse de Luxembourg;
  • the handling of questions in relation to authorisation of new markets;
  • the monitoring of information obligations for issuers of listed securities as well as the handling of files relating to takeover bids and mandatory squeeze-out/sell-out; and
  • the work related to the monitoring and application of international and national regulations relating to the tasks of the department.

Information systems of the CSSF (IT)

The department is responsible for the information systems used by the CSSF to carry out its tasks. The department is responsible for the management of projects, IT development and IT production, i.e. the management of technical infrastructures that include the servers and networks as well as the applications and databases.

Supervision of information systems and support PFS

The department is in charge of: 

  • the supervision of information systems of the supervised entities, as well as their audit; the on-site inspections, the assessment of the IT section of the external and internal réviseurs' (auditors') reports submitted to the CSSF, the technical advice on specific questions or on the internal information system, the information security and the national or international work on IT;
  • the prudential supervision of the professionals referred to in Articles 29-1 to 29-6 of the Law of 5 April 1993 on the financial sector and the review of periodical financial information to be transmitted to the CSSF, the on-site inspections and the analysis of the comments and assessments provided by the réviseurs d'entreprises agréés (approved statutory auditors) and internal auditors of support PFS.

 

 

Public oversight of the audit profession

The department is responsible for:

  • the access to the profession of réviseur d'entreprises (statutory auditor) in Luxembourg including inter alia: the admission to training of réviseurs d'entreprises candidates, the organisation of continuing education and the Examen d’Aptitude Professionnel (professional qualification examination), the attribution of the professional designation réviseur d’entreprises and cabinet de révision (audit firm);
  • approving and keeping the official list of réviseurs d'entreprises and cabinets de révision, as well as the management of and accessibility to this public register;
  • registration of auditors, falling within the scope of application of the CSSF's quality assurance system, in a public register;
  • the public oversight of the statutory audit which covers the setting-up of an independent quality assurance system including: the development of the inspection approach, the determination of fees for the financing of the activity, the performance of quality control inspections of réviseurs d'entreprises agréés and of cabinets de révision agréés (approved audit firms) in Luxembourg, the public oversight of third-country auditors and audit entities and the relevant cooperation, the system of investigation, injunction, call to order and sanction as well as the verification of compliance with the continuing education requirements of the réviseurs d’entreprises;
  • the regulatory aspects related to the adoption of international standards on auditing, standards on professional ethics and internal control of cabinets de révision agréés and standards relating to other assignments exclusively entrusted to the réviseurs d'entreprises agréés and the cabinets de révision agréés.