Credit institutions and investment firms impacted by key CSSF circular

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On 7 December 2020, the CSSF published significant updates to CSSF Circular 12/552 on central administration, internal governance and risk management which will enter into force on 1st January 2021. This circular is a cornerstone of Luxembourg bank regulation and contains key requirements applying to the organisation and activities of credit institutions.

One key change is that the requirements for credit institutions and investment firms will no longer be the same:

One of the main reasons for the update of CSSF Circular 12/552 is to ensure that it is aligned with several recent EBA Guidelines1. It is worth noting that some of the recent EBA Guidelines have, however, not yet been reflected therein, such as the EBA Guidelines on Outsourcing Arrangements (EBA/GL/2019/02).

It is also worth noting that some requirements only confirm existing regulatory practices and are thus not new but have now been expressly spelled out.

Please find below a summary of the key changes for credit institutions and an overview of the simplification of the requirements for investment firms.

 


1The following EBA Guidelines have now been reflected in CSSF circular 12/552:


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2020.12.14 – Luxembourg Newsflash – Credit institutions and investment firms impacted by key CSSF circular

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