LUXEMBOURG: Publication of CSSF Regulation No 20-09 on the Equivalence of the United Kingdom for the Purpose of the MiFIR third Country National Regime

On 24th December 2020, the Commission de Surveillance du Secteur Financier (CSSF) announced that it would like to draw the attention of the public to the publication of the CSSF Regulation No 20-09 of 14 December 2020, amending CSSF Regulation No 20-02 of 29 June 2020 on the equivalence of certain third countries with respect to supervision and authorisation rules for the purpose of providing investment services or performing investment activities and ancillary services by third-country firms (“Regulation No 20-09”).

In the absence of an equivalence decision by the European Commission in accordance with Article 47(1) of Regulation (EU) 600/2014 (MiFIR), a third-country firm may, subject to certain conditions set forth in Circular CSSF 19/716 as amended by Circular CSSF 20/743 (the “Circular CSSF 19/716”), provide investment services or activities as well as ancillary services in Luxembourg to eligible counterparties and professional clients per se, without setting up a branch in Luxembourg (the “national third-country regime”). In particular, a third-country firm must be subject to supervision and authorisation rules that the CSSF deems equivalent to those laid down in the Law on the Financial Sector.

The purpose of Regulation No 20-09 is to include the United Kingdom of Great Britain and Northern Ireland in the list of jurisdictions, which are deemed equivalent for the application of the national third-country regime.

It is to be noted that, in accordance with Article 2(2) of Regulation No 20-02, the equivalence decisions made by the CSSF may be revoked where one or several conditions on which the decision was based are no longer met. To that effect, the CSSF will continue to monitor the applicable regulatory framework in the United Kingdom regarding the supervision and authorisation of firms providing investment services and activities.

Regulation No 20-09 will apply from 1 January 2021 (hence, immediately after the termination of the transitional period set on 31 December 2020).

In order to benefit from the national third-country regime, a third-country firm must submit a complete application file to the CSSF without any delay.

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