Regulation BCL 2020/No. 29 of 31 December 2020 amending Regulation BCL 2014/No. 18 implementing ECB Guideline 2014/31 on temporary additional measures for Eurosystem refinancing operations and collateral eligibility

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BANQUE CENTRALE DU LUXEMBOURG
Regulation of the Central Bank of Luxembourg 2020/ No. 29 of 31 December 2020 amending the Regulation of the Central Bank of Luxembourg 2014/ No. 18 of 21 August 2014 implementing ECB Guideline 2014/31 on temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility

The Directorate of the Central Bank of Luxembourg, Having regard to the Treaty on the Functioning of the European Union and in particular Article 127(2), first indent; Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Articles 3.1, 12.1 and 18; Having regard to Article 108bis of the Constitution; Having regard to the Law of 23 December 1998 on the monetary status and the Central Bank of Luxembourg (hereinafter the "Central Bank") as amended, in particular Articles 2(1), 2(2) and 34(1); Whereas:

(1) Asset-backed securities where the underlying assets comprise either mortgage claims or loans to small and medium-sized enterprises, or both, and which do not satisfy certain requirements specified in Article 3(5) of ECB Guideline 2014/31 should no longer be eligible as collateral for the Eurosystem, given that this category of assets has never been used.

(2) The method for calculating pecuniary sanctions in cases where private claims non-compliant with Article 154(1)(c) of ECB Guideline (EU) 2015/510 (ECB/2014/60) are included in a portfolio of other private claims, in accordance with Article 4 of Guideline ECB/2014/31, should be modified to avoid imposing disproportionate pecuniary sanctions.

(3) As Guideline ECB/2014/31 has been amended accordingly, it is appropriate to implement the new measures by amending the Regulation of the Central Bank of Luxembourg 2014/ No. 18 of 21 August 2014 implementing ECB Guideline 2014/31 on temporary additional measures concerning Eurosystem refinancing operations and collateral eligibility, as amended, accordingly.

HAS ADOPTED THIS REGULATION:

Article 1. Amendments
The Regulation of the Central Bank of Luxembourg 2014/ No. 18 of 21 August 2014 is amended as follows:

1. in Article 3, paragraph 5 is deleted;
2. Article 4 is amended as follows:
   a) in paragraph 2, the first sentence is replaced by the following text:
   "National Central Banks that decide to accept private claims in accordance with paragraph 1 determine the eligibility criteria and risk control measures for this purpose, specifying the points on which derogation is made from the requirements set out in Guideline (EU) 2015/510 (ECB/2014/60)."; b) the following paragraph is added:
   "5. In the event of non-compliance with an obligation referred to in Article 154(1)(c) of Guideline (EU) 2015/510 (ECB/2014/60), for the purposes of calculating the pecuniary sanction in accordance with Annex VII to that Guideline, the sum of the values attributed to all non-compliant private claims included in a portfolio of private claims that do not comply with that obligation shall be taken into account.".

Article 2. Entry into force
This Regulation shall enter into force on the day following its publication.

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Article 3. Publication
This Regulation shall be published in the Official Journal of the Grand Duchy of Luxembourg and on the website of the Central Bank (www.bcl.lu).

BANQUE CENTRALE DU LUXEMBOURG
The Directorate