Financial supervisor CSSF on Thursday said it has imposed a fine of 178,600 euro on European Depository Bank SA, a unit of Apex Group.
A 2021 on-site inspection by the CSSF looked into the firm’s IT risks and found “infringements” relating to internal governance and IT organisation, IT outsourcing and IT risk management, the supervisor said.
“These infringements were generally acknowledged by the Bank’s new authorised management,” said CSSF.
“The fine arose following an on-site inspection carried out between November 2021 and May 2022 and relates to IT governance and oversight in place at the time of the inspection,” a spokesperson for EDB said.
“In response to the CSSF’s findings and as part of our ongoing transformation process, EDB has implemented a comprehensive programme of corrective actions. Today, many of the CSSF’s recommendations have been implemented, including the strengthening of the Executive Management Board and Board of Directors with the appointment of experienced industry leaders. As the largest service provider in Luxembourg, Apex Group takes seriously its commitment to upholding the highest of risk, compliance and governance standards across all our business subsidiaries.”
EDB over the last year has made significant changes in its senior management. It appointed David Claus as its new CEO last summer and since then has appointed a number of new senior executives.