In the context of the fact that the draft law Nr 7157 transposing MiFID II in Luxembourg had not yet been adopted, the Commission de Surveillance du Secteur Financier ("CSSF") issued on December 29, a press release with the objective to clarify certain points concerning the application of MiFID II and MiFIR in Luxembourg as from 3 January 2018.
The CSSF clarifies that as foreseen in the Treaty on the Functioning of the European Union for all European Regulations, MiFIR will be binding and directly applicable in Luxembourg from 3 January 2018. As from that date, MiFIR provisions will replace the corresponding provisions contained in the current Markets in Financial Instruments Law or in the current Law on the Financial Sector. This also covers the use of an approved reporting mechanism.
The CSSF further highlights that the fundamental principles of EU law imply that the MiFID provisions that confer new rights or are more favorable than the current national rules shall also apply from 3 January 2018 and the existing national provisions shall be interpreted accordingly. This applies for example to the rules on organizational requirements, inducements and research.
The same principles as set above are applicable to the various Commission delegated acts adopted under the MiFID/MiFIR framework.
The CSSF ultimately reminds stakeholders of the work conducted by ESMA to ensure convergence in the application of the legislation and provides the links to the ESMA frequently asked questions on MiFID II and MiFIR and to the guidance on the continuity of cross-border provision of investment services in the transition between MiFID I and MiFID II. Links are also provided to the circulars and frequently asked questions issued by the CSSF, where further documents may follow.
The full text of the press release is available at the following web link
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