Regulatory Alerts2018-12-18
Circular CSSF-CPDI 18/14 — Definition of public authorities in the context of exclusions from deposit guarantee
The Commission de Surveillance du Secteur Financier and the Deposit Protection and Investors Protection Council issued Circular CSSF-CPDI 18/18 to clarify the exclusion of public authorities from the Luxembourg Deposit Guarantee Fund. The circular mandates a strict interpretation of the term 'public authority' for the purposes of Article 172(1)(10) of the amended Credit Institutions Law. It defines public authorities exclusively as central public administrations (code 11000) and other public administrations (code 12000) as specified in the Luxembourg Central Bank's statistical reporting definitions.
Luxembourg, 18 December 2018 To member institutions of the Luxembourg Deposit Guarantee Fund X CIRCULAR CSSF-CPDI 18/14X Subject: Definition of public authorities in the context of exclusions from deposit guarantee.
Dear Sirs,
The purpose of this circular is to clarify the exclusion of public authorities from the deposit guarantee provided for in Article 172, paragraph 1, point 10 of the amended Law of 18 December 2015 on the failure of credit institutions and certain investment firms. It is addressed to institutions affiliated with the Luxembourg Deposit Guarantee Fund (FGDL).
Given the legal principle that exceptions are to be interpreted strictly, a narrow definition of the term 'public authority' should be adopted. Thus, for the purposes of the aforementioned Article, the following counterparties defined in Chapter 5.3.1 of the document 'Definitions and concepts for the statistical reporting of credit institutions'¹ of the Luxembourg Central Bank are to be considered as public authorities:
• central public administrations (code 11000), and • other public administrations (code 12000).
For any questions regarding this circular, please contact Mr. Laurent Goergen (email: laurent.goergen@cssf.lu).
Please accept, Sirs, the assurance of our distinguished sentiments.
COMMISSION DE SURVEILLANCE DU SECTEUR FINANCIER Deposit Protection and Investors Protection Council
For the CPDI Claude SIMON President of the CPDI