14 July 2021




A recent CSSF update to the FAQ on the application of MiFID to Luxembourg IFMs, aims at clarifying under what circumstances and to what extent MiFID applies to IFMs; their third-party delegates; and their investment advisers. Consequently, IFMs should analyse their organization model in order to assess whether or not the IFM’s activities require a MiFID license.


Luxembourg Market Update:

Sustainable funds represent a rapidly growing segment of investment solutions in Europe, according to the first annual European Sustainable Investment Funds Study by Morningstar and zeb, supported by the Association of the Luxembourg Fund Industry (ALFI). The study found that net assets in sustainable fund products have more than doubled since 2018, attracting 52% of all net new flows and reflecting 11% of total net assets domiciled in Europe at the end of 2020.


Regulatory Developments in and beyond Luxembourg:

10 June 2021:

CSSF publishes FAQ on the application of MiFID to Luxembourg IFMs

The CSSF has published an FAQ on the application of MiFID to Luxembourg IFMs. The FAQ clarifies under what circumstances and to what extent MiFID applies to IFMs, their third-party delegates and their investment advisers. Consequently, IFMs should analyse their organizational model in order to assess:

  • the need for an authorization to provide services under Article 101 (3) of the Law of 17 December 2010 or under Article 5 (4) of the Law of 12 July 2013;
  • appropriate compliance, by any third country entity acting as their delegate or undertaking services on their behalf, with the third country regime as foreseen under Circular CSSF 19/716 as amended by Circular CSSF 20/743 on the provision in Luxembourg of investment services or performance of investment activities and ancillary services in accordance with Article 32-1 of the Law of 5 April 1993 on the financial sector.

Exemptions are available to third parties that provide investment services to IFMs. These may be (i) specific exemptions under the amended law of 5 April 1993 on the financial sector, such as intragroup service exemptions, or (ii) partial exemptions from MiFID rules, with an obligation upon third parties to be able to prove, at any time, that they indeed fall under the exemption claimed.

The new FAQ has been included in the following CSSF FAQ:

Further to the CSSF, IFMs are expected to comply with the FAQ as soon as possible and by 31 December 2021 at the latest, considering the best interests of investors. 


15 June 2021:

Regulation on cross-border distribution

The new Commission implementing regulation on facilitating cross-border distribution of collective investment undertakings (CIUs) was published. It will enter into force on 5 July 2021 and apply in line with the new marketing rules as from 2 August this year (and regarding article 5 from 2 February 2022 respectively). The new implementing regulation deals with the forms, templates, procedures and technical arrangements for the publications and notifications of marketing rules, fees and charges, and specifies the information to be communicated for the creation and maintenance of the central database on cross-border marketing of AIFs and UCITS, as well as the forms, templates and procedures for the communication of such information.


15 June 2021:

Updated CSSF FAQ on PFS

 The CSSF adapted its FAQ for Professionals of the Financial Sector (PFS). The FAQ notably focuses on PFS granting loans.


18 June 2021:

EDPB recommendations on data transfers under GDPR

The European Data Protection Board (EDPB) published the final version of recommendations 01/2020 on measures that supplement transfer tools to ensure compliance with the EU level of protection of personal data. Data controllers relying on Standard Contractual Clauses (SCCs) are required to verify, on a case-by-case basis and, where appropriate, in collaboration with the recipient of the data in the third country, if the law of the third country ensures a level of protection of the personal data transferred that is essentially equivalent to that guaranteed in the European Economic Area (EEA).


28 June 2021:

Adequacy decisions on GDPR data exchange with UK

The European Commission has adopted two adequacy decisions regarding data exchange between the EU and the United Kingdom: one under the General Data Protection Regulation (GDPR) and the other under the Law Enforcement Directive. The consequence of these decisions is that personal data can continue to flow freely from the EU to the UK as the Commission has deemed the personal data protection framework in the UK to be equivalent to GDPR.


For further information, please contact:

Tobias Ettlin
m: +352 691 111 931

Disclaimer: This regulatory update has been prepared for clients of ONE group solutions and its subsidiaries for informational purposes and is not intended to be relied upon as professional advice. Please visit:

Our Resources and Strengths


We operate around the principle that if our people have a stake in the business, they will do a better job for our clients. We have a committed and stable team, as they see the benefit of long-term value creation through building long-standing relationships. We build value for clients, and their end customer.


You can have the best technology and the most efficient processes in the world, but if you don’t have the people to operate them, your business is worth very little. Thus, our biggest asset is our team of professional and passionate experts.


We operate next generation technology through a combination of in-house, and best in market solutions to deliver an impeccable service and use technology to excel in both service delivery and efficiency.


We delight in valued long-term partnerships with clients, team, industry partners and our stakeholders. We aim to work with clients who share our belief in the importance of building strong partnerships over time.


* Mandatory
ONE respects your privacy and is committed to ensure the data you supply to us is kept safe. Please confirm that you accept our privacy notice on how we process your data.