Supervision

In Europe’s two largest ETF hubs, Luxembourg and Ireland, different rules govern the naming of Exchange Traded Funds (ETFs). 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.

The European Securities and Markets Authority (ESMA) on Thursday unveiled its ambitious Data Strategy for the next five years, signalling a commitment to bolstering data-related technologies, slashing compliance costs, and enhancing data accessibility within the European Union’s financial markets.

As global financial hub known for its robust banking and investment industry, Luxembourg is awaiting an upcoming discussion at the Financial Action Task Force (FATF) on its anti-money laundering (AML) measures. The FATF, the international body responsible for combating money laundering and terrorist financing, will discuss the findings of its latest mutual evaluation assessment of the grand duchy next week in Paris.

Europe’s top financial regulators on Thursday presented a first official definition of greenwashing as part of a common approach for cracking down on greenwashing practices among banks, asset managers and insurance companies, turning up the pressure on an industry that has for a long time been complaining about the lack of clarity of the EU’s sustainable finance regulations.

Europe’s top regulator for securities and financial markets on Wednesday said it believes there is a need for EU-level legislation to make sure investors do not bear costs that are considered excessive, unnecessary, or unreasonable when they put their money in investment funds.

Luxembourg’s banking sector is asking data protection and financial services authorities to provide more clarity on the use of generative AI tools like ChatGPT. Presenting its survey on the use of ChatGPT, bank sector group ABBL on Thursday said 38 per cent of bank employees are currently blocked from using such tools, which is significantly more than the average of 24 percent for the sector as a whole.

Luxembourg financial supervisor CSSF on Thursday announced a more flexible deadline for filing reports on marketing materials in relation to the EU’s Sustainable Finance Disclosure Regulation, or SFDR. 

The 30 countries in the European economic area account for less than one out of every five credit ratings issued by credit rating agencies across the world, according to a new report published on Tuesday by the European Securities and Markets Authority, Esma.

In a dawn raid on 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.

Dublin-headquartered asset services specialist Waystone on Thursday announced that it has agreed, following years of discussions, to acquire the UK and Irish business of Link Fund Services for an undisclosed amount from its Australian parent. Link’s Luxembourg-based fund services are being put up for sale, as is its operation in Switzerland.

“Link Group is proposing to pursue a separate sale of the Luxembourg and Swiss entities which form part of the FS Business,” a company spokesperson said.