Regulatory News Alert - CSSF Circular 12/544 |
Risk-based approach for "Support PFSs"
On 18 July 2012, the CSSF issued Circular 12/544 on the optimisation of the supervision by a risk-based approach of "Support PFSs" codified as type "I" (which means that only entities in the scope of Articles 29-1 to 29-4 of the Law of 5 April 1993 on the financial sector, as amended, are concerned). In light of the risks that the provision of services to the professional clients of the financial services industry can pose to the industry, the focus of the CSSF’s surveillance will be on the following:
Proportionality
The services provided should be assessed against the significance of the outsourced activities for the professional clients of the financial services industry and the weight that financial services have in the Support FSP’s client portfolio.
Annual reporting
The Support PFS will annually produce two reports to the CSSF, a Risk Analysis Report ("RAR") and a Narrative Report ("NR").
Role of the réviseurs d’entreprises agréés (authorised statutory auditors) and the long form audit report ("LFAR")
The LFAR will compile the auditor’s key findings as regards the following: administrative and accounting organisation, internal control systems, IT infrastructure, financial situation and risks.
The circular requiring the LFAR has not been yet published. Thus, no requirements or deadlines are known currently. However, this circular is expected for 2013 for a first LFAR appraisal in 2014.
Discover all the details of this law in the PDF attached above.
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Regulatory News Alert - CSSF Circular 12/544 - English version
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