Regulatory Alerts2018-05-30
Added · Updated
Grand-ducal Regulation of 30 May 2018 on the protection of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits
The regulation imposes obligations on credit institutions, investment firms, management companies, and alternative investment fund managers to maintain accurate records, conduct regular reconciliations, and ensure the separate identification of client assets from their own. It restricts the depositing of client financial instruments and funds to specific third parties and jurisdictions, mandates explicit client consent for the use of instruments in securities financing transactions, and sets a 20 percent limit on depositing client funds with group entities. Additionally, it requires the appointment of a compliance officer for client asset protection, annual statutory auditor reporting, and the integration of sustainability factors into product governance procedures.
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