– What interest has the CSSF seen from UK headquartered institutions since the Brexit referendum?
Yes, in fact, we have been approached by several actors from the UK. We’ve been approached by UK banks and also by international banks outside of the EU that have large operations in the UK that serve today as their main base to operate in Europe. We’ve also been approached by large investment firms from the UK and we’ve had interest from payment institutions based in the UK.
– What is the CSSF’s approach towards firms wishing to set up operations or launch activities in Luxembourg?
We have a quite welcoming approach in a sense that as soon as we hear interest from those firms, we invite them to come to the CSSF to contact us and to explain their plans and then we discuss the practicalities in terms of the minimum size of the operations that is required in Luxembourg, key staff, key management, IT systems.
One subject matter that is always coming back is the delegation or outsourcing back to the UK.
So far we have not seen firms or banks that want to establish very large operations in Luxembourg but they have large operations in the UK and they want to use back office and other services going forward and so delegation and outsourcing is an important subject matter. We are quite flexible there. We do allow outsourcing back into the group in the EU and outside of the EU so no matter what will happen to the Brexit and when it will happen, firms should be fine also post Brexit. But we do insist of course that there is a minimum operation here in Luxembourg, a minimum size. The authorised management must be in Luxembourg, key functions must be in Luxembourg, and there must be an IT system in Luxembourg that instores a daily balance sheet so that at all times we can access the accounts.
We also need people onsite who can answer questions regarding the accounts in Luxembourg but overall this is not a very big requirement from the CSSF.
We also apply proportionality in that when firms set up an operation in Luxembourg – we ask for less substance and this has to be developed according to upon agreed plan as the business develops here in Luxembourg.
English has always been working language at the CSSF. All our staff speaks English and we also accept English as the filing language and as a working language with the candidates to establish themselves in Luxembourg.
– Has the CSSF seen evidence of uncertainty in the fund industry since the Brexit vote?
No, we haven’t.