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Compliance Risks Haunt Financial Institutions in Luxembourg, Experts Warn

In a move to highlight the growing concerns over compliance risks in financial institutions in Luxembourg, [Firm Name]’s department of Regulatory & Compliance Advisory Services (RCAS) has warned that the increasing complexity of financial regulations poses significant threats to the sector.

Compliance Risks in Financial Institutions

The RCAS team, comprising professionals with expertise in regulatory, operational, and compliance matters, provides timely, cost-effective, and practical assistance to clients. The firm advises entities that perform professional activities regulated by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF), including:

  • Banks
  • Payment institutions
  • E-money institutions
  • Investment funds
  • Management companies
  • Other financial service providers

Compliance Diagnostic and Implementation Services

According to RCAS, compliance diagnostic and implementation services are critical in today’s regulatory environment. The firm offers a range of solutions, including:

  • Compliance diagnostic and implementation
  • Fund office services
  • Setting up a financial institution or ECB and CSSF licensing process
  • Product set-up and compliance
  • Regulatory watch services (3W)
  • IT outsourcing services
  • Direct support to compliance functions
  • On-site inspection preparation
  • Fit and proper assessments for management bodies
  • Risk management services

New Regulations Require Immediate Attention

The Markets in Financial Instruments Directive II (MiFID II) and the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation, which went live in January 2018, have introduced new requirements for firms to disclose specific information on costs and charges of certain investment products or services. RCAS advises financial institutions in Luxembourg to take these regulations seriously and implement measures to ensure compliance.

Prioritizing Compliance is Crucial

With the increasing complexity of financial regulations, financial institutions in Luxembourg must prioritize compliance and regulatory risk management to avoid significant reputational damage and financial losses. RCAS is well-positioned to provide expert advice and support to help financial institutions navigate this challenging landscape.