Luxembourg financial watchdog hikes fees

Luxembourg financial watchdog's fees have increased across the board, following the introduction of a new regulation.

The regulation, which was signed into law on 21 December 2017 and took effect on 1 January 2018, increases the fees that can be charged by the Commission de Surveillance du Secteur Financier (CSSF).

The CSSF will now charge €15,000 to approve the establishment of a new credit institution in the Grand-Duchy, versus €10,000 under the previous fee regime.

Annual fees have also increased for credit firms to €85,000 for those with a balance sheet less than or equal to €500 million.

For credit institutions with a balance sheet above €500 million but less than or equal to €2.5 billion, the annual fee will be €130,000.

For those with a balance sheet above €2.5 billion, there will be a charge of €350,000.

For branches, the fees stand at €60,000 under €250 million, €80,000 between €250 million and €1.25 billion and €130,000 above €1.25 billion.

Previously, the rates were €50,000 for firms with a balance sheet of or less than €250 million, €70,000 for those with a balance sheet between €250 million and €1.25 billion and €120,000 for those with a balance sheet above €1.25 billion.

There is a new charge for any establishment that is a member of the deposit guarantee fund of Luxembourg – which ranges from €5,000 to €27,000.

Fund managers also face a hike in fees to set up new funds and in annual fees.

Collective investment schemes, including retail UCITS funds, specialised investment funds (SIF) and investment companies in risk capital (SICAR), which are designed for private equity and venture capital investments, face a fee of €4,000 for new set-ups, versus €3,500 previously.

This increases to €8,000 to €15,000 for umbrella funds with multiple sub-funds or internal management.

Annual fees range from €4,000 up to €35,000, depending on the number of sub-funds. Management companies fees vary from €8,000 to €15,000 for new establishments and €15,000 to €35,000 for annual fees.

There are also new fees for intermediaries of real estate credit, payment and e-money companies and auditors.

The CSSF's fees were last increased around five years ago in 2012.