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    CSSF Maintains CCyB at 0.5%, Issues Update on SFDR Data Collection

    The Financial Sector Supervisory Commission of Luxembourg (CSSF) decided to maintain the countercyclical capital buffer (CCyB) rate for banks at 0.50%, for the first quarter of 2023. CSSF also issued a circular on the application of the European Banking Authority (EBA) Guidelines on the criteria for the exemption of investment firms from liquidity requirements and published a communication on the data collection exercise for investment fund managers with respect to the requirements of the European Union Sustainable Finance Disclosure Regulation, or SFDR (2019/2088). Additionally, the Central Bank of Luxembourg (BCL) updated the documents on data validation checks under the Securities Holdings Statistics (SHS) reporting.

    CSSF issued Circular 23/829 for the implementation of the EBA guidelines on the criteria for the exemption of investment firms from liquidity requirements in accordance with Article 43(4) of the Investment Firm Regulation (2019/2033), The EBA Guidelines specify that small and non‐interconnected investment firms defined as “In-Scope Entities” in Article 12(1) of the Investment Firm Regulation are eligible for the exemption if they fulfill the criteria set out in sections 4.1 and 4.2 and point 20 of section 4.3 of the Guidelines. CSSF has integrated the Guidelines into its administrative practice and regulatory approach, with a view to promote supervisory convergence in this field at European level. The circular shall be applicable with immediate effect.

    Additionally, the communication on SFDR provides industry participants with information on the launch of the first part of SFDR data collection exercise, which mainly focuses on the collection of information regarding organizational arrangements of investment fund managers. CSSF expects the organizational arrangements of investment fund managers to take due account of the integration of sustainability risks, notably in terms of human resources and governance, the investment decision or advice process, the remuneration and risk management policies and the management of conflicts of interest. Through this communication, CSSF expects industry participants to complete a dedicated questionnaire via the launch of a new eDesk module “SFDR-IFM disclosures” from February 02, 2023. The deadline for submission of the questionnaire is March 02, 2023. CSSF highlights that the current data collection exercise will be extended in the near future to collect information contained in the principal adverse impact (PAI) statements and in the precontractual and periodic disclosure templates. Further details on timing and practical proceeding of the data collection will be communicated at a later stage.


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    Keywords: Europe, Luxembourg, Banking, CCyB, Basel, Regulatory Capital, SFDR, Sustainable Finance, Validation Checks, ESG, Liquidity Requirements, Investment Firms, IFR, Reporting, EBA, SHS Regulation, Disclosures, BCL, CSSF

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