Financial Sector Supervisory Commission
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| State level | Federal authority | ||
| Position of the authority | Independent authority in Luxembourg | ||
| legal form | Public law institution | ||
| Consist | since December 23, 1998 | ||
| Headquarters | Luxembourg | ||
| Coordinates | 49 ° 36 '57 " N , 6 ° 5' 56.7" E | ||
| General Director | Claude Marx | ||
| Employee | 911 (January 1, 2020) | ||
| Website | www.cssf.lu | ||
The financial sector supervisory commission ( French: Commission de Surveillance du Secteur Financier (CSSF)) is the financial supervisory authority in Luxembourg . The CSSF is the Luxembourg counterpart to the German Federal Financial Supervisory Authority . The CSSF is responsible for the supervision of credit institutions, experts in the financial sector, investment companies, pension funds, regulates securities markets and their operators, multilateral trading systems and payment institutions. The CSSF is also the competent authority for the public audit oversight.
History and Status of the CSSF
The CSSF took on the task of banking supervision of the Institut Monétaire Luxembourgeois (IML), which was absorbed into the Luxembourg central bank on June 1, 1998 , as well as the task of stock exchange supervision of the former Commissariat aux Bourses.
The tasks of the CSSF
Mission statement
The Financial Sector Supervisory Commission (CSSF) carries out its mandate as a supervisory authority with the aim of ensuring the solidity and stability of the financial sector. This is done exclusively in the public interest. Within the limits of its powers, the CSSF checks that the authorized companies and issuers comply with the legal provisions that apply to them, including those relating to consumer protection in the financial sector and the prevention of money laundering or terrorist financing in the financial sector. The CSSF represents Luxembourg supervision at international and European level.
In achieving its goals, the CSSF pursues a supervisory approach in accordance with international standards and taking into account the principle of proportionality, which is implemented with professionalism to ensure independent, future-oriented and risk-based monitoring.
The CSSF is transparent and promotes an efficient exchange with stakeholders in the financial sector, taking into account the requirements of professional secrecy. She attaches the greatest importance to integrity and responsibility and tries to achieve her goals with commitment and adaptability. The CSSF undertakes to ensure proper administration and to carry out its tasks in an efficient manner. This is done with a view to constructive cooperation both within the CSSF and at national, European and international level.
Area of responsibility
The CSSF is responsible for prudential supervision:
- of banks,
- of investment firms,
- the trader in the financial sector,
- the supporting trader of the financial sector,
- the other financial service providers, especially the investment companies,
- the mutual fund,
- of investment fund management companies,
- the pension fund,
- of the securitization companies that regularly issue financial instruments to the public,
- of venture capital companies,
- the payment institutions,
- the e-money institute.
The CSSF is also responsible for the supervision of the markets for financial instruments and their operators.
Since November 2010 the CSSF has been responsible for the supervision of public auditors. In this regard, the CSSF is responsible for granting the professional qualifications of “Réviseur d'Entreprises” (auditors) and “cabinet de revision” (audit company), for the approval and registration of auditors and audit firms. The CSSF is also responsible for the introduction of audit standards and standards for professional ethics and internal quality control of the approved audit firms and for further training.
The CSSF also monitors compliance with the rules on the prevention of money laundering and terrorist financing by all persons and companies under its supervision.
The CSSF is responsible for protecting consumers in the financial sector and promoting general knowledge of products and services in the financial sector
Area of responsibility
The CSSF does not monitor the interests of the financial service providers, their customers or third parties, but is carried out exclusively in the public interest.
- In this context, the CSSF monitors compliance with the laws and regulations pertaining to the financial center by the persons who are subject to its supervision.
- The CSSF issues an expert opinion on every person who wants to settle in Luxembourg in order to conduct financial transactions and strictly ensures that all admission criteria are met.
- The CSSF itself grants approval for investment funds, investment fund management companies, venture capital companies, securitization companies and pension funds.
In addition to the authorization and supervision of financial companies, the CSSF also has a proactive role and the law assigns the CSSF the following additional tasks:
- Coordinating the implementation of government initiatives and measures to expand activities in the Luxembourg financial center.
- Submitting proposals to improve the legal environment in the financial center.
- Analysis of all questions regarding financial activities that the Minister of Finance asks the CSSF.
- Almost all texts related to financial supervision are decided at EU level. The participation of the CSSF in the negotiations on financial issues at European and international level, as well as in the subsequent implementation of the EU texts in national law, is therefore of great importance.
At sight
The CSSF supervision of companies in the financial sector aims to:
- Promote a considered and prudent business policy in accordance with regulatory requirements
- Protecting the financial stability of supervised companies and the financial sector as a whole
- Monitoring the quality of the organization and internal control systems
- Strengthening the quality of risk management
The CSSF oversees all financial activities in Luxembourg that require the approval of the competent minister for the CSSF. It acts exclusively in the interest of the general public, ensures that the laws and regulations in the financial sector are enforced and complied with and that international agreements and EU directives are implemented in the areas under its responsibility. The CSSF is empowered to obtain all the information it needs to carry out its corporate supervision tasks. The CSSF undertakes negotiations on the financial sector at Community and international level and coordinates the implementation of state initiatives and measures through an orderly expansion of the activities of the financial sector.
Structure of the CSSF
The CSSF has two governing bodies, the Council and the Board of Directors.
The CSSF Council consists of 7 members, including three representatives from industry. The Council approves the annual balance sheet, determines the budget and general policy of the CSSF. However, the Council must not intervene in the area of supervision.
The Board of Directors is the highest executive body of the CSSF. It consists of a general director and 4 directors who take all the decisions necessary to fulfill the mandate of the CSSF. The actual supervision is carried out by the specialized departments, each of which is responsible for a certain company category.
When it comes to regulation, the CSSF attaches great importance to knowing the opinions of those affected. That is why there are advisory bodies on certain subject areas in which industry and consumer protection organizations are also represented.
In addition to the Board of Directors, the CSSF consists of the following departments:
- Executive secretariat
- General Secretariat
- PFS application advice and regulation
- Legal Department
- On-site inspection
- Public auditor oversight
- Accounting, auditing and transparency
- OGA departments
- Supervision of specialized PFS
- Banking supervision
- Single Supervisory Mechansism (SSM)
- Protect depositors and investors
- Securities Markets Supervision
- Supervision of investment firms
- Innovation, Payments, Market Infrastructures, and Governance
- Monitoring of information systems and support PFS
- Human Resources, Administration and Finance Department
- Information systems of the CSSF (IT)
- resolution
Individual evidence
- ^ Law of December 23, 1998, creation of the Commission de Surveillance du Secteur Financier
- ^ Tasks and areas of responsibility: Commission de Surveillance du Secteur Financier (CSSF). Retrieved February 13, 2020 .
- ^ Commission de Surveillance du Secteur Financier Tasks
- ↑ General organization: Commission de Surveillance du Secteur Financier (CSSF). Retrieved February 13, 2020 .
- ^ Organization: Commission de Surveillance du Secteur Financier (CSSF). Retrieved February 13, 2020 .
- ^ CSSF organization
Web links
- Website of the Financial Sector Supervisory Commission (CSSF) (French, English, partly German)