Cssf Cooperation Agreements


Cooperation is the DFSA`s eighth fintech agreement, he said. April 10, 2019, Luxembourg`s financial supervisory authority has adopted: The Financial Sector Supervisory Committee (`CSSF`) has issued circular csSF 19/716 (“circular”) on the provision of investment services in Luxembourg or the provision of investment and ancillary services (“MiFID services”) by third-country companies (“TCF”) in accordance with Article 32-1 of the Financial Sector Act of 5 April 1993 (TCF)). The circular contains other guidelines for the various regimes made available to these companies under section 32-1 of the 1993 Act, 1 Background The Financial Instruments Markets Act of 30 May 20182 amended the 1993 Law by inserting a number of new articles, including Article 32-1, which introduced the TCF regime into Luxembourg law, as well as the amendment of certain other articles. Article 32-1 defines the different regimes available to FTTs who wish to provide MiFID services in Luxembourg. The applicable regime depends on the nature of the clients to whom the TCF intends to provide MiFID services, and Section 32-1 identifies two categories of clients: (i) private and professional clients on request and (ii) eligible professional clients and counterparties. Providing MiFID services to private and/or professional customers on request While the circular does not provide additional details as to the applicable system when MiFID services are provided to individual and/or professional customers on request, it reiterates that TCF must set up a branch in Luxembourg if they wish to offer MIF services at the request of private and/or professional customers. These branches are subject to the same licensing rules as those applicable to credit institutions and investment firms established in accordance with Luxembourg law and subject to CCRA supervision. In addition, they must meet the following conditions: a) MiFID services that the TCF intends to provide in Luxembourg are subject to approval and monitoring in the third country in which the TCF is established (the “third country”). In addition, the DSC must be duly approved, as the competent authority of the third country has properly taken into account all of the FATF`s recommendations on the fight against money laundering and the fight against terrorism (“AML/CTF”); 3 (b) there is a cooperation agreement between the CSSF and the competent authority of the third country, which contains a provision governing the exchange of information; (c) the TCF branch freely disposes of the initial capital; (d) one or more individuals will be responsible for the management of the branch and must, at all times, have sufficient knowledge, skills and skills to carry out their duties and meet all the requirements applicable to the governing bodies of financial sector experts; (e) the third country has signed an agreement with Luxembourg that is fully compliant with the provisions of the OECD`s model tax treaty on income and capital in the exchange of information on tax matters; and (f) the branch must participate in the Luxembourg investor compensation scheme (investor compensation system in Luxembourg).