Regulatory Alerts2022-12-23
Added · Updated
Practical rules concerning the statutory audit mandate of the statutory auditors
This circular mandates that credit institutions and Luxembourg branches of non-EU credit institutions provide a written, detailed audit mandate to their approved statutory auditors (REAs) that covers all branches abroad, excludes no transaction types, and ensures the adequacy of provisions for securities custody risks. REAs must submit reports on annual accounts to the CSSF (and the ECB for significant institutions) at least two weeks before the general meeting, while management letters are due within six months of the financial year-end. The document requires REAs to promptly report to the CSSF any facts or decisions relevant to prudential supervision, such as material infringements, internal control deficiencies, or fraud, and establishes that good-faith disclosures do not breach professional secrecy. These provisions apply as of 31 December 2022 and replace Circular CSSF 01/27.