Circular CSSF 20/739 is a CSSF circular, published 9 April 2020. Subject: ESMA Guidelines on the Reporting under Articles 4 and 12 SFTR.
\nRelevant for: AISPs, E-money institutions, Payment institutions, Payment institutions/electronic money institutions/AISPs.
\nMain topic: Prospectus, SFTR.
\nLuxembourg, 9 April 2020
\nTo all entities subject to the supervision of the CSSF and to all non-financial counterparties to securities financing transactions as defined in Article 3 of Regulation (EU) 2015/2365 (SFTR)
\nRe:
\nESMA Guidelines on the Reporting under Articles 4 and 12 SFTR.
\nLadies and Gentlemen, The purpose of this circular is to inform you that the CSSF, as competent authority, applies the ESMA “Guidelines on the Reporting under Articles 4 and 12 SFTR 1 (Ref. ESMA-70-1512838)” (hereafter the “Guidelines”), published on 6 January 2020 and that the CSSF has integrated those guidelines into its administrative practice and regulatory approach with a view to promote supervisory convergence in this field at European level. Hence, all persons and/or supervised entities falling into the scope of those Guidelines shall duly comply with them. This circular also provides some additional guidance on such guidelines.
\nThe present circular is addressed to (i) all entities subject to the supervision of the CSSF as well as to (ii) non-financial counterparties as defined in Article 3(4) of SFTR as soon as the entities mentioned under points (i) and (ii) enter into a securities financing transaction (hereafter “SFT”) as defined in Article 3(11) of SFTR.
\nRegulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012.
\nThe present circular applies in relation to the SFT reporting obligation as provided in Article 4 of SFTR, as well as in relation to the reporting start date as determined in Article 33(2) of SFTR.
\nThe reporting obligation under Article 4(1) of SFTR applies according to the relevant date of the application specified in Article 33(2)(a) of SFTR.
\nSFTR foresees a phased-in approach for the introduction of the reporting obligation depending on the nature of the entities in scope. Given the fact that certain of the starting dates fall on a non-working day in Luxembourg, the reporting shall effectively start on the following dates: -
\nTuesday, 14 April 2020 for entities referred to under Article 33(2)(a)(i) of SFTR;
\nMonday, 13 July 2020 for entities referred to under Article 33(2)(a)(ii) of SFTR;
\nMonday, 12 October 2020 for entities referred to under Article 33(2)(a)(iii) of SFTR; and
\nMonday, 11 January 2021 for entities referred to under Article 33(2)(a)(iv) of SFTR.
\nPursuant to Article 4(1) of SFTR the counterparties should comply with their reporting obligation no later than the working day following the conclusion, modification or termination of the transaction.
\nBy its Public Statement on “Actions to mitigate the impact of COVID-19 on the EU financial markets – postponement of the reporting obligations related to securities financing transactions under the Securities Financing Transactions Regulation and under Markets in Financial Instruments Regulation (Ref. ESMA 80-191-995)”, published on 26 March 2020, ESMA indicates that the SFT reporting implementation is heavily impacted by the COVID-19 pandemic. Based on the considerations described in the ESMA statement, and taking into account the fact that the concerned entities face serious difficulties in finalising the implementation of the SFT reporting requirements and in completing the necessary technical set-up before 14 April 2020, the CSSF decided that it will not prioritise its supervisory actions towards counterparties, entities responsible for reporting and investment firms in respect of their reporting obligations pursuant to SFTR or MiFIR, regarding (i) SFTs concluded between 13 April 2020 and 13 July 2020, and (ii) SFTs subject to backloading under SFTR.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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