This year’s overview of the most read articles on Investment Officer Luxembourg demonstrates that readers are highly attracted to articles about financial regulation and supervision of investment funds and management companies in the Grand Duchy. News articles about industry consolidation, Eltifs, fund valuations and anti-money laundering requirements were also among the most popular ones.
Here comes the top ten of most read articles in 2023:
10: Fuchs & Associés enters liquidation, Fuchs AM up for sale
The Luxembourg District Court in July ordered the liquidation of 23-year old investment firm Fuchs & Associés Finance SA and appointed a liquidator and an official receiver. Luxembourg’s financial supervisor CSSF, noting “serious breaches of essential legal and regulatory requirements,” said it has revoked the firm’s authorisation to operate. Fuchs Asset Management was put up for sale. Go to the article. This September article on the sale of Fuchs AM just fell short of the Top 10.
9: Waystone emerges as big gorilla in the Raif market
By a landslide, Dublin-headquartered investment services firm Waystone in January emerged as the biggest issuer of new funds in the Luxembourg market for Reserved Alternative Investment Funds, or Raifs, the latest data analysis by Investment Officer Luxembourg showed. Go to the article
8: France, Luxembourg clash over Eltif 2.0 RTS
European regulators, especially those in Paris and Luxembourg, are at odds over the regulatory and technical standards for the updated European Long Term Investment Funds scheme, known as Eltif 2.0, according to people familiar with the discussions. Without consensus before Eltif 2.0 becomes effective in January 2024 it may pose challenges for issuers introducing new products to the market. Go to the article
7: Owners of Degroof Petercam want to sell their shares
In May, it emerged that Belgium’s largest independent private bank, Degroof Petercam, was considering a major reshuffle of its ownership structure that could potentially lead to a new majority shareholder. Some of the existing owners, mainly Belgian noble families but also undefined “financial partners”, had indicated they want to sell their shares. Go to the article. Read the related August article on the eventual sale of Degroof Petercam to CA Indosuez.
6:Luxembourg raid probes AC Milan fraud claim
In a dawn raid on a April Friday, Luxembourg judicial authorities searched for documents of two holding companies controlled by US hedge fund Elliott Management in relation to last year’s 1.2 billion euro sale of Italian football club AC Milan. Although it has formally closed, the sale is still contested by a third Luxembourg holding company, Blue Skye Financial Partners, which owned a small minority stake in AC Milan and which claims it has fallen victim to fraud under Luxembourg law. Go to the article
5: Accounting law overhaul brings more disclosure for SCSp’s
Luxembourg is undertaking a substantial re-working of its accounting law, the legislation setting out requirements for corporate record-keeping and reporting. Guided by the European accounting directive, the effort is to modernise and streamline the law, and align it with current common market practices, better reflecting the profile of Luxembourg’s businesses. SCSp partnership vehicles, often used for funds, and firms with more than 500 million euro on their balance sheets now face additional requirements. Go to the article
4: CSSF plans on-site inspections on climate and ESG risks
Luxembourg’s financial supervisor CSSF in April presented its priorities in the area of sustainable finance. The regulator said it strives to “accompany the transition of the financial sector and its players in a proactive way”. Defining specific priorities for banks, for asset managers and for investment firms, CSSF also said that on-site inspections on climate and ESG risks will be part of its approach. Go to the article
3: Naming rules divergence in ETF hubs creates confusion
In Europe’s two largest ETF hubs, Luxembourg and Ireland, different rules govern the naming of Exchange Traded Funds (ETFs), IO reported in June. While European rules for ETF naming conventions are determined by Paris-based authority Esma, the implementation by national supervisors CSSF in Luxembourg and CBI in Ireland diverges, presenting both opportunities and risks for ETF providers. Go to the article
2: Inadequate due diligence behind mass account freeze
At an Alfi conference in November, CSSF underlined that about 86,000 investor accounts, primarily belonging to everyday retail investors outside the Grand Duchy, have been frozen. This situation, affecting over 8 percent of total investors, is mainly due to the financial institutions’ failure to conduct adequate due diligence, according to the Financial Action Task Force. Go to the article. Read more about the 2023 report on Luxembourg released in September by the FATF.
1: CSSF orders broad assessment of fund valuation frameworks
Fund valuations became increasingly important this year, especially in private equity funds following the declines in public markets in 2022. The CSSF in August announced that investment funds and their managers had to conduct comprehensive assessments of their valuation frameworks and to update these where necessary by the end of the year. Go to the article. Related interview with CSSF’s Marco Zwick.
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