Supervision

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.

Luxembourg’s financial supervisor CSSF this week 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”. It has defined separate priorities for banks, for asset managers and for investment firms.

Luxembourg’s financial supervisor CSSF on Monday said it expects managers of Liability Driven Investment funds, also known as LDI funds, to maintain yield buffers set last year at levels introduced to make these funds resilient to the UK Gilts crisis.

Luxembourg’s top supervisor for investment funds on Wednesday assured the country’s fund management community, describing the sector as “very robust” and speaking about “quite normal” levels of volatility, even though it is not fully immune to the liquidity issues that have rocked global financial markets in recent weeks.

Negative global market sentiment against Swiss bank Credit Suisse meant Europe’s banking sector was under fire again on Wednesday, leading up to a evening statement by Swiss supervisors saying that they will commit liquidity to the bank.  The bank then said it plans to move swiftly to create “a smaller and more focused bank”.

“If necessary, the SNB will provide CS with liquidity,” the Swiss National Bank and regulator Finma said last night.