11 April 2022



ESMA has announced a Common Supervisory Action (CSA) on cost and charges disclosures. ESMA will ask local regulators how they supervise compliance with the MiFID II rules on product governance. Investment firms in Luxembourg should be prepared to respond to inquiries by the CSSF on this topic during the coming months.

Luxembourg Market Update:

As of 31 December, 2021, net assets of Luxembourg investment funds reached an all-time high of EUR 5.9 trillion(1) (USD 6.6 trillion(2) ). This represents a year-on-year increase of EUR 886 billion or + 17.8%. Retail and institutional investors poured a record amount of money into nearly all asset classes. With net inflows of EUR 394 billion over the past 12 months, and EUR 491 billion stemming from market valuation, the organic growth rate resulting from net subscriptions amounted to 7.9% whereas the impact of markets accounted for 9.9% of the increase in assets. Looking back over the past four years, with more than EUR 30 billion net subscriptions per month, investors committed more money than ever to Luxembourg investment funds in 2021.

 Regulatory Developments in and beyond Luxembourg:

30 January 2022: CSSF publishes Circular 22/795 on the application of ESMA guidelines on marketing communications

The Circular concerns the application of ESMA guidelines on marketing communications which were published on 2 August 2021. It has been in effect since 2 February 2022, which is also the date of application of ESMA Guidelines, whereas the marketing communication requirements set out in the CBDF Regulation have been applicable since 2 August 2021. 

31 January 2022: CSSF publishes Circular CSSF 22/797 on sound remuneration policies

The Circular states that the CSSF applies the Guidelines of the EBA on sound remuneration policies under Directive 2013/36/EU (EBA/GL/2021/04), published on 2 July 2021. Consequently, the CSSF has integrated the Guidelines into its administrative practice and regulatory approach with a view to promote supervisory convergence in this field at European level. Circular CSSF 17/658 regarding the adoption of the EBA Guidelines on sound remuneration policies (EBA/GL/2015/22) and Circular CSSF 11/505 regarding details relating to the application of the principle of proportionality are repealed.

3 February 2022: Circular CSSF 22/793 on electronic transmission of the annual closing documents

The circular provides details on the procedure for the electronic transmission to the CSSF of the annual closing documents by specialised PFS.

4 February 2022: Circular CSSF 22/798 on short selling and certain aspects of credit default swaps

The Circular amends Circular CSSF 12/548 on short selling and aspects of credit default swaps and details on practical aspects of notification, disclosure and exemption procedures on net short positions in shares.

4 February 2022: ESMA overview of cross-border distribution of investment funds

ESMA has published on its website an overview for the cross-border distribution of investment funds. The overview features hyperlinks to the websites of national regulators where the complete and up-to-date information on applicable national laws, regulations and administrative provisions governing marketing requirements for AIFs and UCITS is published, along with the summaries thereof, and the list of hyperlinks to the webpages of national regulators where regulatory fees and charges are published.

8 February 2022: ESMA launches Common Supervisory Action on cost and charges disclosures

ESMA has announced the launch of a Common Supervisory Action (CSA) with national regulators regarding the application of the disclosure requirements on costs and charges under the Markets in Financial Instruments Directive (MiFID II). The CSA will focus on disclosures to retail investors. ESMA also published a supporting Q&As document. The aim of the CSA is to ensure consistent implementation and application of disclosure requirements.

11 February 2022: ESMA publishes Sustainable Finance Roadmap 2022-2024

ESMA has released its Sustainable Finance Roadmap 2022-2024. ESMA identifies three priorities for its sustainable finance work:

  1. Tackling greenwashing and promoting transparency;
  2. Building National Competent Authorities’ (NCAs) and ESMA’s capacities in the sustainable finance field; and
  3. Monitoring, assessing and analysing ESG markets and risks.

23 February 2022: European Commission adopts proposal for a Directive on corporate sustainability due diligence

The European Commission has adopted a proposal for a Directive on corporate sustainability due diligence. The proposal intends to foster sustainable and responsible corporate behaviour throughout global value chains, to bring legal certainty and a level playing field for businesses and to ensure more transparency for consumers and investors. The proposal will now be presented to the European Parliament and the Council for approval.


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:

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