Regulatory Watch – Lux Edition – November 2023

The 38th Edition of the Aurexia Luxembourg RegWatch is now available.

Find out more on the latest news on ESMA Q&A updates on MiFID II & MiFIR Market, Adoption of the EBA’s revised guidelines on AML (Circular CSSF 23/842 – 23/843), List of countries under embargo, new PSD3 and How to increase retail investors’ participation in Capital Markets.

Discover our Regtech Corner with the presentation of Examin a French regtech with the mission is to simplifies your business and transform legal and regulatory constraints in strengths.

Content of our november edition

ESMA Q&A updates on MiFID II & MiFIR Market

In June 2014, the MiFID II and MiFIR regulatory texts entered into force to define a clear framework for the financial instruments markets. MiFID II defines the framework around the investor’s protection and transparency while MiFIR completes it, defining clear rules of disclosure with regard to pre- and post-trade information. Those requirements cover among others credit institutions, investment firms, market venues, CCP, OTF, and MTF.

Adoption of the EBA’s revised guidelines on AML, Circular CSSF 23/842 – 23/843

Fortifying Financial Safeguards: Unraveling the Impact of Circular CSSF 23/842 on Anti-Money Laundering and Counter-Terrorist Financing Strategies in the EU

Circular CSSF 23/842 represents a significant regulatory development, as it pertains to the adoption of revised guidelines by the European Banking Authority (EBA) on money laundering and terrorist financing risk factors. This circular serves as a complementary piece to Circular CSSF 21/782, emphasizing the continuous efforts of financial institutions and regulatory bodies to enhance anti-money laundering (AML) and counter-terrorist financing (CTF) measures across the European Union.

List of countries under embargo

In the dynamic international context in which we live, it’s important to have important up-to-date information. In the November issue of Aurexia, we bring you an update on countries and zones under financial embargo, which means extra vigilance in our day-to-day business.

Belarus, Burundi, Congo , North Korea, Guinea-Bissau, Guinea, Haiti, Iran, Iraq, Lebanon, Libya, Mali, Moldavia, Myanmar (formerly Burma), Nicaragua, Niger, Central African Republic, Russia, Somalia, Sudan, South Sudan, Syria, Tunisia , Turkey, Venezuela, Yemen, Zimbabwe.

PSD3

In recent years, the European Union has been at the forefront of shaping regulatory frameworks to enhance the efficiency and security of the payments sector. Two key initiatives, the Payment Services Directive 3 (PSD3) and the Payment Service Regulation (PSR), are poised to play pivotal roles in reshaping the landscape of financial transactions in the EU. These initiatives are part of the broader efforts to foster innovation, enhance consumer protection, and ensure the security of payment services. This summary will delve into the key aspects of PSD3 and PSR, exploring their implications and the transformative impact on the payments sector.

Retail Investment Strategy

Before introducing the impact of the Retail Investment Strategy (« RIS ») on the new legislative framework for retail investors, this proposal of RIS from the European Commission dated May 24, 2023 follows action no. 8 of the September 2020 Action Plan for the European Capital Markets Union. It is part of the European Commission’s long-term strategy. Its aim is to change the current rules governing the marketing of investment products to the public. Through this proposal, the European Commission aims to enable retail investors to increase their participation in the capital market, and to strengthen reliability and confidence in this market. The proposal also aims to amend several existing directives, such as MIFID 2, Insurance Distribution Directive (IDD), Solvency II, PRIIPS and UCITS & AIFMD Directives. 

Regtech Corner : Examin 

Companies are facing an avalanche of compliance regulations (data, insurance, finance, cybersecurity, ESG…) that they must comply with. This avalanche is complicated to attend for big companies, and it is almost an impossible mission for medium sizes companies..

EXAMIN provides a digital assistant (SaaS platform) to help companies to simplify their compliance and governance obligations. Thanks to the platform, a company can:

• Organize the compliance of the company (headquarter and subsidiaries)
• Visualize the level compliance in real time
• Identify the gaps and the risks
• Implement the action plans
• Evaluate and control the people and companies (internal and external) involved in the compliance
• Increase the level of compliance and the level of trust of the business partners
• Anticipate controls from authorities

To get the full version of the Luxembourg RegWatch, please subscribe by sending an email to regulatory.watch@aurexia.com and specify “Luxembourg” as the regional publication you wish to subscribe to.