New regulations drive up CSSF supervision fees
Luxembourg has decided to raise charges for supervising financial institutions by approximately 10 to 15 percent this year, according to an analysis of the Grand Duchy’s recent government decision. The increase was roughly 15 percent for banks, while investment firms were informed of increases of around 10 percent for 2022.
Green transition leads to higher inflation
In the medium term, the green transition may further fuel inflationary risks, according to ECB board member Isabel Schnabel in an interview with the Financial Times last weekend. Rising energy prices, she said, may require the ECB to do more to hold back increases. She urged portfolios to increase their investments into real assets.
Systemic fund risks daunting challenge for regulators, industry
International financial regulators, considering lessons learned from defusing systemic risks in the banking sector, have set their sights on similar risk tools to reduce the systemic risks associated with open-ended bond funds. An industry representative claims that such macroprudential tools won’t work as regulators don’t fully understand how fund management works. The markets, meanwhile, have little faith that regulators can effectively resolve this daunting conundrum.