CSSF Issues Multiple Regulatory Updates for Financial Entities

Below are the key details of the recent updates:

• CSSF published circular CSSF-CODERES 22/15 on information collection for the calculation of the 2023 ex-ante contribution according to Articles 4 and 14 of the Commission Delegated Regulation (EU) 2015/63. To determine the annual contribution to be paid by each credit institution in 2023, the Single Resolution Board (SRB) needs to obtain a certain amount of information as expressed in its decision data reporting form and additional assurance and the kick-off letter (Annexes 1 and 2). To properly complete the XBRL file, SRB has provided the data reporting form, along with a guidance (Annexes 3 and 4). The duly completed XBRL file must be submitted by January 13, 2023.
• CSSF published a communiqué on sustainability disclosures for issuers under Article 8 of the Taxonomy Regulation, for the transition year. Article 8 of the Taxonomy Regulation, which became applicable on January 01, 2022, requires issuers to meet new disclosure obligations on how and to what extent their activities are associated with economic activities that qualify as environmentally sustainable. The communiqué highlights that 60% of the reviewed issuers were able to achieve compliance with the new disclosure requirements. The communiqué also shows the importance of providing qualitative information to enable users to better understand the information given and to be able to compare it across issuers and sectors. CSSF also notes that, for the second year of reporting, from January 01, 2023, the disclosure requirements on Taxonomy-alignment information will, in absence of detailed practical guidance and in anticipation of the awaited publication of the Environmental Delegated Act, be highly challenging for issuers. As a result, the remaining months, leading up to the publication of the next reporting, are critical for issuers in view of ensuring a smooth but successful implementation of Article 8 of the Taxonomy Regulation.
• CSSF published circular CSSF 22/821 revising the framework of the long form report for credit institutions and repealing circular CSSF 01/27. The revision ensures that the long form report remains in line with regulatory developments and with the supervisor’s main points of focus. The framework was redesigned to minimize supervisory burden, eliminate redundancies in reporting obligations of credit institutions, as well as digitalizing the new long form report which allows efficient processing in line with the digital strategy of CSSF. The circular introduces a self-assessment questionnaire to be filled by credit institutions, an agreed upon procedure (AUP) report(s) to be established by the réviseur d'entreprises agréé (REA), a separate report on the protection of financial instruments and funds belonging to clients as required under Article 7 of the Grand-ducal Regulation, and a separate report covering anti-money laundering and countering the financing of terrorism (AML/CFT) further to CSSF Regulation N°12-02.

Related Links (in French)

• Circular on Ex-ante Contributions
• Communiqué on Sustainability Disclosures 
• Revised Framework for Long Form Report

Keywords: Europe, Luxembourg, Banking, Reporting, Ex Ante Contributions, AML CFT, Regtech, SRB, XBRL, Disclosures, Taxonomy Regulation, ESG, Climate Change Risk, Basel, Single Resolution Fund, CSSF