In accordance with the new Luxembourg Law dated 21 December 2012 transposing the Omnibus I – Directive 2010/78/EU, investment advisors for specialised investment funds and UCIs do no longer benefit from an exemption under the Financial Sector Law of 5 April 1993. Going forward all professionals of the financial sector acting as investment advisors are required to apply for a authorization as Conseiller en Investissements (Investment Advisor, cf. Art. 24 of the Financial Sector Law).
The Directive 2010/78/EU of 24 November 2010, commonly referred to as the "Omnibus I" – Directive, regulates the EU regulatory authorities European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (better known as ESMA) and the respective reporting, notification and cooperation duties of national watchdogs in the European Union.
The Law dated 21 December 2012 has now implemented the Omnibus I – Directive into Luxembourg law, adapting and amending various existing laws, amongst others the already mentioned Financial Sector Law. Moreover, certain provisions regarding the audit reporting to the CSSF applicable to specialized investment funds and investment companies in risk capital have been amended.
The Law of 21 December 2012 was published in the Official State Gazette (Mémorial) on the 28 December 2012 and entered into force three days later. Any professional about to start his advisory activity upon the entry into force of the new law must apply for the status as Conseiller en Investissements, whereas Luxembourg-based advisors who were already active in this business before, are granted until 30 June 2013 to receive the regulatory clearance and are required to file an application to the CSSF by 1st March of this year at the very latest.
The text of the law of 21 December 2012 as well as coordinated versions of the impacted laws are available in French on the CSSF website. In addition, the CSSF published a press release (n° 13/02) in French on its website for further guidance on the required application.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.