UK: CSSF Press Releases and Brexit Developments

Last Updated: 5 August 2019
Article by Ian Manson and Anil Singh

CSSF Brexit Press Releases 19/33 and 19/34

The Luxembourg financial services regulator, the Commission de Surveillance du Secteur Financier ("CSSF"), published on July 15, 2019 two press releases (Press Release 19/33 and Press Release 19/34) setting out mandatory notification requirements for UK firms in the context of Brexit.

In the case of a "hard Brexit" (i.e. if the UK leaves the EU without a withdrawal agreement in place) UK firms will lose their passporting rights under the relevant financial services EU single market directives and will, as of that date, be considered "third-country firms" from an EU perspective.

The press releases above follow the publication of Press Release 19/18 on the laws of April 8, 2019 regarding measures to be taken in the financial sector in the event of Brexit (the "Brexit Laws"), and set the conditions for UK firms to continue operating in Luxembourg during a transitional period in a hard Brexit scenario.

Mandatory Notifications for UK Firms

UK firms authorized under CRD, MiFID II, PSD 2 and EMD operating in Luxembourg under a passport that intend to conclude new contracts after a hard Brexit will have to obtain authorization from the CSSF. The CSSF reminded these firms that the authorization process can take up to 12 months and encourages them to apply as soon as possible.

To continue servicing existing contracts as well as new contracts with close links to existing contracts, UK firms currently operating through a passport will be able to continue their activities for a transitional period of 12 months ("transitional regime"). To benefit from this transitional regime, these firms will have to notify the CSSF by no-later than September 15, 2019. The CSSF will review these notifications , and inform firms individually of whether they can benefit or not from the transitional regime.

Mandatory Notifications for UK UCIs and UK Managers

With regard to UK undertakings for collective investment ("UCIs") and UK managers authorized under the AIFMD or UCITS Directive and managing Luxembourg funds under a passport ("UK managers"), a similar transitional regime of 12 months is being implemented. These entities will also have to notify the CSSF by no later than September 15, 2019 of their intention to benefit from the transitional regime.

Additional Requirements for UK UCIs and UK Managers

In addition to the mandatory notification, UK UCIs and UK managers will be also required to submit to the CSSF as soon as possible, and no later than October 31, 2019, an authorization application or the corresponding notification or information on any action taken otherwise, depending on the nature of the activities they intend to pursue after a hard Brexit and/or the steps undertaken to address the loss of passporting rights. The CSSF will review this information and will inform the impacted UK UCIs and UK managers of its decision to grant the transitional regime or not within 10 business days of the submission of the required information.

The CSSF also clarified that managers holding a license under both the UCITS Directive and the AIFMD will have to submit a Brexit notification for both licenses. UK managers who have already applied for authorization with the CSSF will still have to submit a Brexit notification.

What Should You Do?

All UK firms, UCIs and managers wishing to continue operating in Luxembourg should notify the CSSF of their intentions by September 15, 2019. The CSSF will open the notification portal on its website in the coming weeks.

UK managers of Luxembourg funds will also have to apply for authorization or submit the required additional information about their alternative plans by October 31, 2019.

All UK firms wishing to enter into new contracts after a hard Brexit should apply for authorization from the CSSF as soon as possible and note that this could take up to 12 months to be processed.

New UK Prime Minister: What Does It Mean for Brexit?

On July 24, 2019 Boris Johnson became the new UK Prime Minister. During his recent Tory leadership campaign, the new Prime Minister pledged his determination to take the UK out of the EU on October 31, 2019 "do or die, come what may" even without a withdrawal agreement in place. He has also ruled out a number of compromises, such as accepting changes to the backstop solution to the Irish border, which may help the UK renegotiating the withdrawal agreement with the EU. In light of the above, commentators expect the likelihood of a hard Brexit to have significantly increased under Boris Johnson's leadership.

Firms are thus encouraged to step up their hard Brexit preparations with regard to their cross-border activities not only in Luxembourg but across the EU.

How Can We Help?

Our Compliance and Regulatory Consulting experts across our European offices can help you navigate the complexities of Brexit and assist your firm in preparing for a hard Brexit scenario.

We offer a wide range of Post-Brexit Solutions including:

  • Third-party UCITS and AIFM management company and substance solutions in Ireland and Luxembourg;
  • Acting as global distributor for your fund products in Europe;
  • Consulting and compliance advice around regulatory authorizations and registrations in Europe, including cross-border product maintenance;
  • Valuation services and advice related to local and EU tax implications of restructuring your business, management agreements and employees post-Brexit; and
  • Advice on tax and structuring your business post-Brexit.

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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Kirkland & Ellis International LLP
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Kirkland & Ellis International LLP
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions