The CSSF’s prudential supervision aims to ensure that investment vehicles and managers subject to its supervision continuously observe all legal, regulatory and contractual provisions relating to their organisation and operation, with the objective to ensure investor protection and stability of the financial system.
Prudential supervision is exercised via:
- off-site supervision based on the analysis of the periodic financial information, annual reports, other reports (including the reports of the réviseurs d’entreprises agréés (approved statutory auditors)) and regular or ad hoc information received by the CSSF;
- on-site supervision, i.e. on-site inspections carried out by the CSSF agents at the offices of supervised entities.