Published on 15 June 2021

Adaptation of the FAQ on the statuses of PFS with respect to the PFS status relating to the granting of loans to the public (Article 28-4 of the Law of 5 April 1993 on the financial sector (LFS))

Article 28-4 of the LFS is aimed at professionals whose activity consists in granting, for their own account, loans to the public. Given the increasing number of requests to take a stance regarding the interpretation of the notion of “public” and the question of when the CSSF considers that a lending activity is directed towards the public, the CSSF updated the FAQ (Part II, Question 52) in order to provide clarification and legal certainty.

In the absence of a legal definition of the term “public” in the LFS, the CSSF considers that a lending activity is not directed towards the public where:

  • loans are granted to a limited circle of previously determined persons; or
  • the nominal value of a loan amounts to EUR 3,000,000 at least (or the equivalent amount in another currency) and the loans are granted exclusively to professionals such as defined in Article L. 010-1. 2) of the Consumer Code.

In all other cases, the CSSF will carry out an assessment on a case-by-case basis.