During the last 12 months we have been engaged in various key regulatory areas, ensuring that our industry's compliance and advocacy efforts align with evolving regulatory frameworks.
- First, on AIFMD, our association has been actively engaged in its review (AIFMD II) from the beginning,emphasising a targeted review without unnecessary changes and advocating for maintaining it as a manager directive.
- Moving to AML, negotiations at the EU level have been intense. We analysed provisional texts and conveyed crucial messages. Locally, we aimed to provide clearer guidance on due diligence, particularly on the asset side, and organised events to address bank account opening challenges for investment funds.
- In the field of depositaries, our focus has been on ESG-related investments and advocating for quantitative investment restrictions. We emphasised integrating ESG monitoring into due diligence and maintained stringent eligibility thresholds for national derogations.
- Regarding DORA, our efforts included responding to consultations and advocating for Luxembourg’s fund industry. Key impacts for IFMs include enhanced ICT governance and establishing independent control functions for ICT risk management. Our joint conference with ABBL and other partners highlighted these impacts.
- For MiCA, we advocated for regulatory flexibility to accommodate crypto-assets and distributed ledger technology, preferring a principle-based approach and consistent interpretation across Europe.
- In liquidity management, we are aligning with the latest regulatory developments from IOSCO and FSB. Our responses emphasised robust liquidity management in open-ended funds.
- On market infrastructures, we provided feedback on derivatives clearing and settlement discipline, advocating for transparency and better understanding of transactions. We also addressed challenges related to the T+1 settlement cycle.
- Our MiFID focus has been on the European Commission’s Retail Investment Strategy, advocating for a holistic Value for Money concept that includes qualitative aspects and investor preferences.
- For NAV calculation, the new CSSF circular aims to protect investors in case of NAV errors and non-compliance, providing clearer guidance on correction procedures and financial impact determination.
- In risk management, we organised sessions to address members’ needs and launched a series of regulatory updates. Our collaboration with ALRiM in the Risk Talks series provided platforms for practical discussions on sustainability risks and model validation.
- For PRIIPS, we reviewed proposals, advocated for a level playing field, welcomed the deletion of the comprehension alert, and integrated sustainability information into existing sections.
- In sustainable finance, we highlighted the need for clarity in disclosures, aligning with CSRD requirements, and proposed a voluntary categorization regime to enhance retail investor understanding.
- On taxation, among others, we addressed the impact of the EU directive on minimum taxation for large groups, monitored the new EU system on withholding taxes, and provided guidance on data protection in the context of CRS.
- Lastly, for VAT, we issued practical considerations on the VAT exemption for fund management services, focusing on tax and regulatory reporting services.
Our association has been actively engaged in its review (AIFMD II) from the beginning, emphasising a targeted review without unnecessary changes and advocating for maintaining it as a manager directive.
We advocated for regulatory flexibility to accommodate crypto-assets and distributed ledger technology, preferring a principle-based approach and consistent interpretation across Europe.
The new CSSF circular aims to protect investors in case of NAV errors and non-compliance, providing clearer guidance on correction procedures and financial impact determination.
Among others, we addressed the impact of the EU directive on minimum taxation for large groups, monitored the new EU system on withholding taxes, and provided guidance on data protection in the context of CRS.
Negotiations at the EU level have been intense. We analysed provisional texts and conveyed crucial messages. Locally, we aimed to provide clearer guidance on due diligence, particularly on the asset side, and organised events to address bank account opening challenges for investment funds.
We are aligning with the latest regulatory developments from IOSCO and FSB. Our responses emphasised robust liquidity management in open-ended funds.
We organized sessions to address members' needs and launched a series of regulatory updates. Our collaboration with ALRiM in the Risk Talks series provided platforms for practical discussions on sustainability risks and model validation.
In advocacy terms, the period 2023/2024 marked the final stretch of a legislative marathon. As the European Parliament’s term is coming to an end, there was increased pressure to close all kinds of legislative proposals.
Our focus has been on ESG-related investments and advocating for quantitative investment restrictions. We emphasised integrating ESG monitoring into due diligence and maintained stringent eligibility thresholds for national derogations.
We provided feedback on derivatives clearing and settlement discipline, advocating for transparency and better understanding of transactions. We also addressed challenges related to the T+1 settlement cycle.
We reviewed proposals, advocated for a level playing field, welcomed the deletion of the comprehension alert, and integrated sustainability information into existing sections.
With Luxembourg now hosting 80 ELTIFs out of a total of 116 across Europe, this podcast dives into the key regulatory changes of ELTIF 2.0.
Our efforts included responding to consultations and advocating for Luxembourg’s fund industry. Key impacts for IFMs include enhanced ICT governance and establishing independent control functions for ICT risk management. Our joint conference with ABBL and other partners highlighted these impacts.
Our MiFID focus has been on the European Commission’s Retail Investment Strategy, advocating for a holistic Value for Money concept that includes qualitative aspects and investor preferences.
We highlighted the need for clarity in disclosures, aligning with CSRD requirements, and proposed a voluntary categorisation regime to enhance retail investor understanding.