Credit institutions

Credit Institutions are legal persons whose activities consist in receiving from the public deposits or other repayable funds and in granting credits for their own account. Credit institutions are by law also authorised to exercise all activities regulated by the Law of 5 April 1993 on the financial sector, in particular investment services.

The sectoral regulation on UCIs provides for a specific authorisation for central administration/transfer agent and depositary of Luxembourg UCIs.

The European prudential supervision regime is organised as follows:

Type of credit institution Direct competent authority
Significant Luxembourg incorporated credit institution ECB
Less significant Luxembourg incorporated credit institution CSSF
Branch of an EU significant credit institution ECB
Branch of an EU less significant credit institution Home authority
Branch of an EU credit institution incorporated in a non Euro area Member State Home authority
Branch of a non EU credit institution CSSF

Besides the prudential supervision in a strict sense which lies, as the case may be, at the ECB, the CSSF or the home authority, the CSSF is in particular in charge of the following areas of supervision.

The CSSF is the competent authority in charge of the supervision of compliance with professional obligations in respect of anti-money laundering and counter terrorist financing.

The CSSF is in charge of the supervision of consumer protection regulation, in particular MiFID, mortgage credit directive and consumer credit directive.

The CSSF is in charge of regulation in relation with market integrity, in particular EMIR, SFTR (Securities Financing Transactions Regulation) and Benchmark regulation.

The CSSF is finally in charge of various other European or national regulations: Payment services directive, Directive on security of network and information systems, Directive on payment accounts.