The CSSF, which has been active since 1 January 1999, took over some responsibilities of the Institut Monétaire Luxembourgeois (IML) which became the Banque centrale du Luxembourg (BcL) on 1 June 1998, as well as the responsibilities of the former Commissariat aux Bourses. The recent institutional changes in the structure and the practice of prudential supervision have not, in any way, altered the existing legal and regulatory framework.
The CSSF is responsible for the prudential supervision of credit institutions, professionals of the financial sector, alternative investment fund managers, undertakings for collective investment, pension funds, SICARs, authorised securitisation undertakings, fiduciary-representatives having dealings with securitisation undertakings, regulated markets and their operators, multilateral trading facilities, payment institutions and electronic money institutions. It also supervises the securities markets, including their operators.
- promoting a considered and prudent business policy in compliance with the regulatory requirements;
- protecting the financial stability of the supervised companies and of the financial sector as a whole;
- supervising the quality of the organisation and internal control systems;
- strengthening the quality of risk management.
Public oversight of the audit profession
The CSSF is in charge of:
- granting the professional qualification of réviseur d'entreprises (statutory auditor) and cabinet de révision (audit firm), of their approval and registration;
- adopting auditing standards and standards on professional ethics and internal quality control of approved audit firms;
- continuing education;
- implementing a quality assurance system to which all statutory auditors and audit firms which are approved for carrying out statutory audits and any other assignments which are reserved to them by the law concerning the audit profession are subject to.
Control as regards the fight against money laundering and terrorist financing
The CSSF is in charge of ensuring compliance with professional obligations as regards the fight against money laundering and terrorist financing by all the persons subject to its supervision.
Financial consumer protection
The CSSF is the competent authority to ensure compliance by the supervised professionals with the laws protecting financial consumers.
The CSSF is the national resolution authority and performs the tasks arising 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.
As part of the powers and tasks incumbent upon the CSSF as resolution authority, the decision-making body is the Resolution Board, composed of five members: the Resolution Director (Chairman of the Resolution Board), the Director of the Treasury, the Director General of the Banque centrale du Luxembourg, the Director of the CSSF in charge of the supervision of banks and a magistrate.
The CSSF has a whole range of significant measures to act against persons subject to its supervision that would violate the applicable regulations relating to the financial sector or that would not comply with the professional obligations imposed on them.
National, European and international cooperation
The CSSF cooperates with the Banque centrale du Luxembourg, the European supervisory authorities and the other supervisory authorities and resolution authorities at the European and international level.