Supervision

Luxembourg, a hub for global finance, has seen a significant uptick in alerts on questionable transactions that could signal money laundering or even finance terrorism.

The Luxembourg Ucits market, a cornerstone of the European investment landscape, demonstrated both its strength and vulnerability in the face of 2022’s economic turbulence, with fund managers navigating increased market and credit risks, while maintaining prudent leverage and liquidity management.

Les autorités de surveillance financière de toute l’Europe s’emploient activement à fournir des orientations sectorielles sur les déclarations de durabilité que les entreprises financières associent à leurs produits. Au Luxembourg, la CSSF a exposé ses attentes à l’égard des gestionnaires de fonds d’investissement dans un rapport thématique publié en août. Son homologue néerlandais, l’AFM, a depuis lors publié ses propres lignes directrices.

Luxembourg’s financial supervisor CSSF on Wednesday urged banks, investment funds and the general public in the Grand Duchy to be extra vigilant in relation to money transfers that could finance groups such as Hamas and Islamic Jihad. The reminder comes just a month after the world’s top body for fighting money laundering and terrorism finance said the sector’s understanding of terrorism finance is «very low».

Bien que la consultation de l’UE sur le très discuté Règlement sur la divulgation d’informations en matière de finance durable (SFDR) ne s’achève qu’en décembre, les premiers contours du futur SFDR 2.0 se précisent peu à peu.

Though the EU consultation of the much-debated Sustainable Finance Disclosure Regulation is set to conclude only in December, the outlines of what will be termed as SFDR 2.0 are gradually emerging.

On 11 July 2023, the European Securities and Markets Authority (Esma) updated its guidance in relation to the definition of “advice”. This was rendered through a supervisory briefing which basically an update of the previous Q&As issued by CESR - Esma’s predecessor - on this topic.

The European Securities and Markets Authority (Esma), the EU’s financial markets regulator and supervisor, on Tuesday said it plans a comprehensive review next year of industry efforts to integrate sustainability in investment firms’ suitability assessment and product governance processes and procedures.

The review will be shaped as a Common Supervisory Action, or CSA, in which it closely involves national supervisors such as the CSSF in Luxembourg.

Securities supervisors worldwide are looking to coordinate and align their approaches to greenwashing in the investment industry, it became clear on Monday during a panel debate hosted by Iosco, the Madrid-based body that brings together securities regulators from across the world. The debate marked the start of Iosco’s seventh World Investor Week.

The European Securities and Markets Authority, Esma, on Thursday posted its 2024 work programme, emphasising digital and green transitions against a backdrop of economic challenges including inflation and geopolitical strains.

Esma said it plans to reinforce its market and risk monitoring efforts and support the European regulatory framework’s implementation, particularly in digital and sustainability sectors. This is in line with the regulator’s aim to address challenges for the European Union and its citizens, including investors.