CSSF Adopts EBA Guide on Threshold Monitoring for IPUs Under CRD IV
The Financial Sector Supervisory Commission of Luxembourg (CSSF) published a circular on the application and adoption of the European Banking Authority (EBA) guidelines for limited network exclusion Payment Services Directive (PSD2) and for threshold monitoring on the establishment of an intermediate parent undertaking under the Capital Requirements Directive (CRD IV).
Circular CSSF 22/814 applies EBA guidelines on the monitoring of the threshold and other procedural aspects of the establishment of an intermediate European Union (EU) parent undertaking under Article 21b of CRD IV. The EBA guidelines aim to specify a common methodology to calculate the total value of assets (in the European Union) of the third-country group with the aim to establish a consistent application of the intermediate EU parent undertaking requirement. CSSF has integrated the guidelines into its administrative practices and regulatory approach with a view to promote supervisory convergence in this field at the European level. The CSSF circular shall apply to less significant institutions and investment firms that are part of a third-country group, to all branches of credit institutions or investment firms incorporated in a third-country, and to financial holding companies, mixed financial holding companies, and investment holding companies incorporated in Luxembourg. This circular shall apply with immediate effect.
Circular CSSF 22/812 adopts EBA guidelines on the limited network exclusion under PSD2. The guidelines aim to clarify the scope and limits of the limited network exclusion as well as the criteria and indicators to be considered by competent authorities in the assessment of whether the activities should fall or not under the said exclusion. They clarify the specific provisions applicable to the authorized payment services providers listed in article 1 of PSD2 and electronic money issuers that would like to benefit from the exclusion. Additionally, the guidelines clarify the notification process as per PSD2 and the description of the activities to be made publicly available on the national registers and central register of EBA. The circular applies to all persons providing in Luxembourg services based on specific instruments that can be used only in a limited way as per Article 3(k) of the law on payment services. This circular became applicable as of June 01, 2022.
Related Links
Keywords: Europe, Luxembourg, Banking, CRD IV, Basel, Intermediate Parent Undertakings, Third-Country Groups, PSD2, CSSF
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
OSFI to Require Full Climate Risk Disclosures by 2027Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.