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
EBA Sets Out Decision on Reporting for IPU Threshold MonitoringNext Article
ECB Reports Examine Health of Financial Sector in EURelated Articles
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.