Commission de Surveillance du Secteur Financier (CSSF)

Basic Information

The Commission de Surveillance du Secteur Financier (CSSF) is Luxembourg’s primary financial regulatory authority responsible for supervising professionals and products within the country’s financial sector. Established as a public institution, it operates under Luxembourgish and EU financial laws to ensure market integrity, investor protection, and compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. The CSSF oversees banks, investment firms, payment institutions, electronic money institutions, investment funds, and other financial entities.

Historical Background

The CSSF was founded in 1998 under the Law of 23 December 1998, consolidating financial supervision previously fragmented among different authorities, including the Institut Monétaire Luxembourgeois (IML) and the Commissariat aux Bourses. Its creation aimed to centralize oversight and align Luxembourg’s regulatory framework with evolving EU financial directives. Over the years, the CSSF has expanded its mandate to cover emerging sectors like fintech, sustainable finance, and digital assets while maintaining Luxembourg’s reputation as a leading financial hub.

Legal Authority and Regulatory Framework

The CSSF derives its authority from multiple Luxembourgish and EU laws, including:

• The Law of 5 April 1993 and the Law of 23 December 1998, establishing its foundational supervisory role.
• EU regulations such as CRD IV/CRR, MiFID II, AIFMD, and UCITS directives for investment firms and funds.
• The Digital Operational Resilience Act (DORA) for ICT risk management in financial entities.
• AML/CFT laws, including the Law of 12 November 2004 and CSSF Regulation No. 12-02.

It collaborates with European supervisory bodies like the EBA, ESMA, and ECB, particularly under the Single Supervisory Mechanism (SSM) for significant banks.

Core Responsibilities and Supervisory Scope

The CSSF’s key functions include:

• Prudential Supervision: Monitoring financial stability of banks, investment firms, and payment institutions through on-site inspections and off-site reviews.
• Market Conduct: Enforcing transparency, preventing market abuse (under MAR), and ensuring fair treatment of financial consumers.
• AML/CFT Oversight: Verifying compliance with due diligence, transaction monitoring, and suspicious activity reporting requirements.
• Fund Supervision: Authorizing and supervising UCITS, AIFs, SIFs, and securitization vehicles, including pre-contractual disclosures under SFDR.
• Innovation & ICT: Regulating fintechs, crypto-asset service providers, and ICT third-party outsourcing under DORA.

Contact Information

Headquarters Address:
Commission de Surveillance du Secteur Financier (CSSF)
283, Route d’Arlon
L-1150 Luxembourg

Key Contact Points:

• General Inquiries: [email protected]
• Consumer Complaints: [email protected] (for out-of-court dispute resolution)
• Investment Funds Department: [email protected]
• AML/CFT Questions: Contact via dedicated forms on the CSSF website.

How to Verify a Regulated Entity

To confirm whether a financial entity is supervised by the CSSF:

1. Check the Supervised Entities section on the CSSF website, which lists authorized banks, investment firms, and funds.
2. For investment funds, search the UCI database maintained by the CSSF.
3. Verify audit firms and statutory auditors through the CSSF’s public register of réviseurs d’entreprises.
4. Cross-reference with the European Central Bank’s registry for significant banks under SSM oversight.