{"id":"circulars/cssf-21-779","title":"Circular CSSF 21/779","type":"circular","date":"2021-07-30","kind":"circular","html":"<p>Circular CSSF 21/779 is a CSSF circular, published 30 July 2021. Subject: Adoption of the Guidelines of the European Securities and Market Authority (“ESMA”) on certain aspects of the MiFID II compliance function requirements (ESMA35-36-1952).</p>\n<p>Relevant for: AIFMs, Credit institutions, Investment firms, Investment fund managers, Management companies - Chapter 15, Management companies - Chapter 16, UCITS.</p>\n<p>Main topic: MiFID II.</p>\n<h2>Text</h2>\n<p>(“ESMA”) ON CERTAIN ASPECTS OF THE MIFID II COMPLIANCE FUNCTION REQUIREMENTS</p>\n<p>(ESMA35-36-1952)</p>\n<p>In case of discrepancies between the French and the English text, the French text shall prevail.</p>\n<p>Circular CSSF 21/779 Re : Adoption of the Guidelines of the European Securities and Market Authority (“ESMA”) on certain aspects of the MiFID II compliance function requirements (ESMA35-36-1952)</p>\n<p>Ladies and Gentlemen,</p>\n<p>Luxembourg, 30 July 2021</p>\n<p>The purpose of this Circular is to inform the public that the CSSF, in its capacity To all investment firms;</p>\n<p>as competent authority as defined under Article 1(2) of the Law of 5 April 1993</p>\n<p>credit institutions when</p>\n<p>on the financial sector, as amended, applies the Guidelines of ESMA on certain aspects of the MiFID II compliance function requirements (Ref. ESMA35-36-</p>\n<p>carrying out investment</p>\n<ol start=\"1952\">\n<li>(the “Guidelines”). Consequently, the CSSF has integrated the Guidelines</li>\n</ol>\n<p>services or investment</p>\n<p>into its administrative practices and regulatory approach with a view to promote</p>\n<p>activities or when selling or advising clients in relation to</p>\n<p>supervisory convergence in this field at European level.</p>\n<p>structured deposits;</p>\n<p>All investment firms, credit institutions when carrying out investment services</p>\n<p>undertakings for collective</p>\n<p>or investment activities or when selling or advising clients in relation to structured deposits, undertakings for collective investment in transferable</p>\n<p>investment in transferable securities (UCITS)</p>\n<p>securities (UCITS) management companies when providing the services referred</p>\n<p>management companies when</p>\n<p>to in Article 101(3) of the UCITS Law 1 in accordance with Article 101(4) of that</p>\n<p>providing the services referred</p>\n<p>Law, and alternative investment fund managers (AIFMs) when providing the</p>\n<p>to in Article 101(3) of the</p>\n<p>services referred to in Article 5(4) of the AIFM Law 2 in accordance with Article</p>\n<p>UCITS Law, in accordance with</p>\n<p>5(6) of that Law, shall duly comply with the Guidelines.</p>\n<p>Article 101(4) of that Law; and alternative investment fund</p>\n<p>managers (AIFMs) when providing the services referred to in Article 5(4) of the AIFM Law, in accordance with Article</p>\n<p>The Guidelines</p>\n<p>The Guidelines are issued by ESMA in accordance with Article 16 of the ESMA Regulation 3.</p>\n<p>5(6) of that Law.</p>\n<p>Law of 17 December 2010 relating to undertakings for collective investment (accessible on the following link: <a href=\"https://www.cssf.lu/wp-content/uploads/L_171210_UCI.pdf\" target=\"_blank\" rel=\"noreferrer\">https://www.cssf.lu/wp-content/uploads/L_171210_UCI.pdf</a>)</p>\n<p>Law of 12 July 2013 on alternative investment fund managers (accessible on the following link: <a href=\"https://www.cssf.lu/wp-content/uploads/L_120713_AIFM_eng.pdf\" target=\"_blank\" rel=\"noreferrer\">https://www.cssf.lu/wp-content/uploads/L_120713_AIFM_eng.pdf</a>)</p>\n<p>Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC</p>\n<p>The Guidelines apply in relation to the application of organisational requirements in accordance with Article 16(2) of MiFID II 4 and Article 22 of the MiFID II Delegated Regulation 5. The Guidelines aim to enhance clarity and foster convergence in the implementation of certain aspects of the new MiFID II compliance function requirements, repealing the existing ESMA guidelines issued on the same topic in 2012 (ESMA/2012/388) (the “2012 guidelines”). The 2012 guidelines have been substantially confirmed by the Guidelines, albeit clarified, refined and supplemented where necessary. In addition, the Guidelines take into account new requirements under MiFID II and the results of supervisory activities conducted by national competent authorities on the application of the compliance function requirements. The</p>\n<p>Guidelines</p>\n<p>are</p>\n<p>available</p>\n<p>ESMA’s</p>\n<p>website:</p>\n<p>The text above is the opening of the document; the PDF carries the whole.</p>\n<p><a href=\"https://www.cssf.lu/en/Document/circular-cssf-21-779/\" target=\"_blank\" rel=\"noreferrer\">Document page</a>, <a href=\"https://www.cssf.lu/wp-content/uploads/cssf-21_779eng.pdf\" target=\"_blank\" rel=\"noreferrer\">PDF</a>. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.</p>"}