Pursuant to Part I, Chapter 2, Section 2, Subsection 3 of the Law of 5 April 1993 on the financial sector, the professionals of the financial sector falling within the following categories are defined as support PFS:
- Article 29-1. Client communication agents
- Article 29-2. Administrative agents of the financial sector
- Article 29-3. IT systems and communication networks operators of the financial sector
- Article 29-5. Dematerialisation service providers of the financial sector.
- Article 29-6. Conservation service providers of the financial sector.
One characteristic of support PFS is that they do not as such offer financial products or services, but act as subcontractors of operational functions on behalf of other professionals providing such financial products or services.
The CSSF’s prudential supervision extends to support PFS incorporated under Luxembourg law, including the activities which they carry out by means of a branch.
Prudential supervision is exercised by the CSSF on support PFS by means of these types of instruments:
- financial information submitted periodically to the CSSF enabling it to monitor continuously the activities of the relevant entities and the inherent risks, together with the monthly control of compliance with the minimum own funds legally required;
- the documents to be submitted in the context of the Descriptive Report (DR) and the self-assessment questionnaire to be submitted annually by support PFS;
- the documents established yearly by the réviseur d’entreprises agréé (approved statutory auditor) including the separate report and the audited annual accounts and, where applicable, the management letter, the internal audit reports relating to audits carried out during the year and the management’s report on the state of the internal audit of the support PFS;
- introductory visits and on-site inspections.
The CSSF also works towards the alignment of its supervisory approach with the continuously evolving specificities of the activities of the various categories of support PFS.