Circular CSSF 23/829 is a CSSF circular on the application of the Guidelines on the criteria for the exemption of investment firms from liquidity requirements in accordance with Article 43(4) of Regulation (EU) 2019/2033 (EBA/GL/2022/10), published 19 January 2023.
\nRelevant for: Investment firms.
\nKeywords: Liquidity.
\nCircular CSSF 23/829 Application of the Guidelines on the criteria for the exemption of investment firms from liquidity requirements in accordance with Article 43(4) of Regulation (EU) 2019/2033 (EBA/GL/2022/10)
\nCircular CSSF 23/829 Subject: Application of the Guidelines on the criteria for the exemption of investment firms from liquidity requirements in accordance with Article 43(4) of Regulation (EU) 2019/2033 (EBA/GL/2022/10)
\nLadies and Gentlemen,
\nLuxembourg, 19 January 2023
\nThe purpose of this circular is to inform you that the CSSF, in its capacity as To all Investment Firms that
\ncompetent authority, applies the Guidelines on the criteria for the exemption of
\nmeet the conditions for
\ninvestment firms from liquidity requirements in accordance with Article 43(4) of
\nqualifying as small and non-
\nRegulation (EU) 2019/2033 (Ref. EBA/GL/2022/10) (the “Guidelines”) published
\ninterconnected investment
\non 29/07/2022. Consequently, the CSSF has integrated the Guidelines into its
\nfirms set out in Article 12(1) of
\nadministrative practice and regulatory approach with a view to promote
\nRegulation (EU) 2019/2033
\nsupervisory convergence in this field at European level.
\nThe Guidelines The Guidelines are issued by EBA in accordance with Article 43(4) of Regulation (EU) 2019/2033 (the “IFR”). The Guidelines have been drafted in the context of the mandatory liquidity requirements that apply under Article 43 of the IFR.
\nScope of application The Guidelines specify that small and non‐interconnected investment firms as defined in Article 12(1) IFR (the “In-Scope Entities”) are eligible for the exemption if they fulfill the criteria set out in sections 4.1 and 4.2 and point 20 of section 4.3 of the Guidelines.
\nPrior authorisation from the CSSF In-Scope Entities that wish to be exempted from the aforementioned liquidity requirements must receive prior authorisation from the CSSF. The CSSF performs a case-by-case assessment in accordance with sections 4.3 and 4.4 of the Guidelines, taking into account In-Scope Entity’s risks to its clients and the firm itself, the nature, scope and complexity of its activities and the types of activities performed by the firm and, if available, any outcome of the supervisory review and evaluation carried out in accordance with Part III, Chapter 4, Section 4 of the Law of 5 April 1993 on the financial sector as well as any other relevant information.
\nIn-Scope Entities shall submit their authorisation request by email to their usual point of contact at the CSSF, with copy to [email] The Guidelines are available on EBA’s website at: https://www.eba.europa.eu/regulation-and-policy/investmentfirms/guidelines-liquidity-requirements-exemption-investment-firms
\nDate of application This circular shall apply with immediate effect.
\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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