Cssf Circular 16/641 Updating CSSF Circular 15/629 On Supplementary Supervision Of Financial Conglomerates

On 5 August 2016, the Commission de Surveillance du Secteur Financier (CSSF) issued CSSF Circular 16/641 which updates CSSF Circular 15/629 "on supplementary supervision to be applied to financial conglomerates and definition of structure coefficients to be observed by the regulated entities belonging to these financial conglomerates pursuant to Article 56 of the law of 5 April 1993 on the financial sector". The Circular applies to credit institutions, investment firms, asset managers and alternative investment fund managers (AIFMs). This update reflects the amendment made by Directive 2011/89/EU to Directive 2002/87/EC "on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate".

CSSF Circular 16/641 adds the following paragraph to Section 2 on the "Supplementary supervision on capital adequacy", point a. "Technical method for the calculation of the supplementary requirements", point 1) (Method based on accounting consolidation): "When this...