Protection of depositors and investors


    Council for the Protection of Depositors and Investors

    The Conseil de protection des déposants et des investisseurs (CPDI, Council for the Protection of Depositors and Investors) is the internal executive body of the CSSF in charge of managing and administering the Fonds de garantie des dépôts Luxembourg (FGDL, Luxembourg Deposit Guarantee Fund) and the Système d’indemnisation des investisseurs Luxembourg (SIIL, Investor Compensation Scheme Luxembourg). In order to establish the third pillar of the Banking Union in Luxembourg, its missions and powers are assigned to it by Part Three of the Law of 18 December 2015 on the failure of credit institutions and certain investment firms (BRRD Law). Its functioning is governed by the provisions of Section 4-2 of the Law of 23 December 1998 establishing the CSSF.

    The CPDI is the designated authority referred to in point (18) of Article 2(1) of Directive 2014/49/EU of 16 April 2014 on deposit guarantee schemes (DGSD). It cooperates, within the limits of its duties, to the drawing-up of reports and other documents to be submitted to the CSSF’s Board. In order to facilitate decision-making, to enhance exchange of information and efficient cooperation between the FGDL and the CPDI and to ensure swift repayment of depositors, the members of the CPDI are also the members of the FGDL’s Management Committee.

    The CPDI is assisted in the performance of its duties by the CSSF department “Depositor and Investor Protection” (PDI department). In general, the PDI department performs the operational tasks of the FGDL and of the SIIL, i.e. it assists in the calculation and collection of the contributions, ensures the sound functioning of the depositor and investor compensation schemes, performs ongoing checks at the participating institutions to ensure the sound functioning of the compensation schemes, carries out the cross-border compensation and, if necessary, the contribution transfer transactions between the deposit guarantee funds in the EU, contributes to the drawing-up of opinions and technical standards within the relevant working groups on deposit guarantee and investor compensation of the European Banking Authority (EBA) and of the European Forum of Deposit Insurers (EFDI).

    Luxembourg Deposit Guarantee Fund

    The FGDL is an établissement public (public body), separate from the CSSF, established under Article 154 of the BRRD Law. The FGDL is the recognised Luxembourg deposit guarantee scheme referred to in Article 4(1) of the DGSD. It collects the contributions due by participating credit institutions, manages the financial means and, in the event of insolvency of a member institution, makes the repayments as instructed by the CPDI.

    Member institutions

    All credit institutions governed by Luxembourg law, as well as POST Luxembourg (for the provision of postal financial services) are required to become member of the FGDL.

    Luxembourg branches of credit institutions having their registered office in a third country, subject to the second sentence of Article 43(2) of the Law of 5 April 1993 on the financial sector, as amended, are required to join the FGDL, if the Commission de Surveillance du Secteur Financier considers that the protection is not equivalent.

    However, branches of banks with their headquarters in another EU country are not members of the FGDL. They are affiliated to a guarantee scheme in that country.


    Pursuant to Articles 179(2) and 180 of the BRRD Law, the FGDL collects the contributions from credit institutions, including Luxembourg branches of credit institutions having their registered office in a third country, and from POST Luxembourg for its provision of postal financial services. The FGDL has meanwhile reached the target level of 0.8% of the covered deposits and continues to collect top up contributions to maintain the target level of this first compartment. In accordance with Article 180(1) of the aforementioned law, the FGDL will continue to collect contributions during the period from 2019 to 2026 in order to provide the FGDL with a buffer of additional financial means representing another extra 0.8% of the covered deposits and which are kept in a segregated compartment. The FGDL will thus reach a level of contributions which represents twice the minimum assets required for by the DGSD.

    The method for calculating ex-ante contributions has been reviewed by the CPDI in 2020 and is laid down in Circular CSSF-CPDI 20/21. It takes into account the risk and the annual change in covered deposits of each member institution individually.

    For the purpose of determining the amount of covered deposits, credit institutions governed by Luxembourg law, as well as Post Luxembourg (in respect of its postal financial services) and branches of credit institutions having their registered office in a third country are required to report data on covered deposits to the CPDI on a quarterly basis, at the level of the legal entity, including deposits with branches located in other Member States. Data at 31 December are also to be provided separately for each branch located in another Member State.

    Investor Compensation Scheme Luxembourg

    The SIIL is governed by Part III, Titles I and III of the BRRD Law and covers funds and financial instruments which its members hold, manage or administer on behalf of their clients. The limit of the SIIL’s cover is 20.000 EUR per eligible investor.

    So called “omnibus” accounts, i.e. accounts opened at a bank in the name of the SIIL member for the benefit of its clients are covered in case of the bank’s failure under the following conditions:

    • In case of financial instruments, the SIIL covers each of the clients if the bank is also a member of the SIIL, and if the bank has been informed prior to its failure about the number and shares of the underlying clients.
    • In case of a “cash” deposit (funds), the Deposit guarantee scheme FGDL covers each client if the bank is a member of the FGDL, and the bank has been informed prior to its failure about the number and shares of the underlying clients.

    In case the bank is member of an investor compensation scheme or deposit guarantee scheme in another EU country, the conditions may vary.

    In case of the failure of an investment firm or an UCITS management company which is a member of the SIIL, the SIIL covers its clients in case the clients’ instruments or funds that are managed on a discretionary and individual basis have been misappropriated. The SIIL does not cover losses due to changes in market prices or due to bad advice. Further information about the coverage of “omnibus” accounts is provided by Circulars CSSF-CPDI 16/02 and 16/03.


    All credit institutions, investment firms, as well as management companies and AIFMs whose authorisation extends to the provision of investment portfolio management services on an individualised and discretionary basis governed by Luxembourg law are required to become member of the SIIL.

    Adhesion for these entities to the SIIL is compulsory and operated de facto by provision of the BRRD Law. The adhesion is formalised through filling out the appendix to circular letter dated 5 August 2016 and sending it to the PDI division of the CSSF.


    The SIIL is financed ex-post, i.e. the CSSF collects funds from the SIIL members after a claim has been made against the SIIL. Each member contributes in proportion to the covered claims that existed at the end of the year preceding the claim against the SIIL. As for now, no taxes will be due for the mere participation in the SIIL.

    The CSSF collects once a year data about covered claims as at 31 December of the previous year. To this end, please consult Circular CSSF-CPDI 17/07, which mandates this census since 2017 and includes recurring years.


    Laws, regulations and directives



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