Circular CSSF 23/845 is a CSSF circular, published 15 November 2023 and updated 14 November 2023. Subject: Update of Circular CSSF 22/821 on the long form report and Circular CSSF 22/826 on the statutory audit mandate.
\nLegal basis: Law of 10 November 2009 on payment services and electronic money.
\nRelevant for: Credit institutions.
\nKeywords: Accounting, AML/CFT, Approved statutory auditor (réviseur d'entreprises agréé), Audit firm, Auditing standards, Cabinet de révision, Cabinet de révision agréé, Credit risk, eDesk, Information security, Internal governance, Liquidity, Payment services, Statutory auditor (réviseur d'entreprises).
\nAmends Circular CSSF 22/826.
\nLuxembourg, 15 November 2023 Ladies and Gentlemen, The purpose of this circular is to amend Circular CSSF 22/821 on the long form report (LFR) with the aim to include clarifications based on the feedback from the industry and to further align the content of the self-assessment questionnaire (SAQ) with supervisory points of focus. As a result, the following 5 thematic sections have been included in the revised SAQ: a.
\ncredit and counterparty risk;
\ninterest rate risk in the banking book (IRRBB) and credit spread risk arising from non-trading book activities (CSRBB);
\nc. d.
\nliquidity risk; strong customer authentication and secure communication following the Payment Services Directive (PSD 2);
\nclimate-related and environmental risks.
\nThis circular also introduces changes in relation to the reports to be established by the réviseurs d’entreprises agréés (approved statutory auditors or “REA”). Whereas both the report on the protection of financial instruments and funds belonging to clients and the report on anti-money laundering and countering the financing of terrorism (AML/CFT) remain, it is no longer foreseen that Agreed Upon Procedure (AUP) reports are required from all banks on a recurring basis. While the CSSF might request such AUPs in the future on an ad hoc basis, no such AUPs are to be submitted with respect to financial year-end 2023 information. The purpose of this circular is also to amend Circular CSSF 22/826 on the practical rules concerning the statutory audit mandate of the REA. In particular, the submission deadline for the management letter is adapted in order to ensure a better alignment with the submission deadline foreseen for the reports to be established by the REA pursuant to Circular CSSF 22/821 on the Long Form Report, as amended. Please refer to Annex I for the details of the amendments to Circular CSSF 22/821 and to Annex II for the details of the amendments to Circular CSSF 22/826.
\nAnnex I: Circular CSSF 22/821, as amended by Circular CSSF 23/845 Annex II: Circular CSSF 22/826, as amended by Circular CSSF 23/845
\nAnnex I: Circular CSSF 22/821 as amended by Circular CSSF 23/845
\nLong Form Report Practical rules concerning the self-assessment questionnaire to be submitted by institutions. Mission and related reports of the approved statutory auditors (réviseurs d’entreprises agréés). To all Luxembourg credit institutions and Luxembourg branches of non-EU credit institutions
\nLuxembourg, 25 October 2022 Ladies and Gentlemen, Circular 22/821 published on 25 October 2022 The purpose of this circular is to introduced a revised version of the long form report following on from the regulatory developments and the evolving supervisory practices since 2001. The revision of the long form report as contemplated under Circular CSSF 01/27 is was the result of a thorough reconsideration of its objective, scope and content in order to realign it with supervisory and prudential points of focus as well as to suppress redundancies between existing reportsing requirementss. Theis circular introduceds the a self-assessment questionnaire to be filled in on an annual basis by the institutions.
\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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