Luxembourg, New Reporting Obligations for Financial Companies
Until recently, a large number of financial transactions involving Luxembourg finance companies were not covered by any data collection system of the Banque Central du Luxembourg (BCL).
On 27 July 2014, the BCL issued Regulation 2014/No. 17, which will enter into force on 1st December 2014, according to which Luxembourg will finally fill the gap with Europe, where banks and other financial institutions are already subjects to financial reporting obligations imposed by their national central banks and the European Central Bank.
BCL also introduced an exemption applicable to certain companies already subject to other data collection obligations, such as credit institutions, collective investment undertakings, venture capital firms, securitisation vehicles and insurance and reinsurance companies.
Entities concerned will be companies located in Luxemburg the object of which includes:
To invest in any company for any kind of investment;
To acquire, bonds, receivables, certificates of deposits and other debt instruments and in any general all financial instruments issued by a public or private entity;
To invest directly or indirectly in the acquisition and management of a real estate portfolio, of patents or other intellectual property rights whatever the nature or the origin;
To borrow in any form; or to lend funds to share holders, subsidiaries, affiliated companies, and/or any other entity.
Financial Companies, whose quarterly balance sheet total exceeds EUR500 million, will provide to BCL a “General Notification”, or rather their most recent annual accounts within one month after this threshold is exceeded.
However, all Financial Companies must send a “Statistical Report”, composed by a quarterly statistical balance sheet report, a quarterly report on transactions, and a monthly security-by-security report.
Financial Companies with a balance sheet of less than EUR 500 million are exempt from the statistical reporting obligations. BCL may impose specific reporting obligation on Financial Companies with a balance sheet of less than EUR 500 million though.