Modification of the requirements of reporting for Luxembourg

www.pwc.lu/accounting
Flash News
Modification of the requirements of
reporting for Luxembourg financial
companies
The Central Bank of Luxembourg (“CBL”) has issued on 21 July 2014 a new
regulation in relation to the collection of statistics from financial companies
modifying the CBL regulation dated 29 April 2011.
16 October 2014
Within the framework of its tasks, the Central Bank of Luxembourg has to transmit
comprehensive and reliable statistics on the balance of payments and the international
investment position to the European Central Bank.
Therefore, since September 2011, all issuing companies reaching certain criteria have
to report to the CBL financial data on a monthly and quarterly basis 1. Following the
entry into force of the European Central Bank guidelines, the regulation 2011/8 of the
CBL has been amended by the CBL regulation 2014/17 2.
This new regulation clarifies and modifies the scope of entities and improves the
consistency of the data collected for supervisory purposes.
Enlargement of the scope with a new definition of the targeted
entities
Currently each non-regulated Luxembourg resident entity with a total balance sheet
exceeding EUR 500 million whose principal activity is to contract loans or, issue debt
securities or, issue derivatives instruments, which are sold by public offering or by
private investment, in order to finance the activities of its affiliated companies, have to
report monthly and quarterly financial data to the CBL.
For further details, please refer to our flash news “New monthly and quarterly
reporting requirements for Luxembourg financial companies” issued on 22 August
2011 and available on our website (www.pwc.lu).
2 Regulation of the Central Bank of Luxembourg 2014/17 of 21 July 2014 concerning
the collection of statistical data from financial companies amending the Regulation of
the Central Bank of Luxembourg 2011/8 of 29 April 2011 concerning the collection of
statistics from companies which grant loans or issue debt securities or derivative
instruments to affiliates. This regulation is available in English and French on
http://www.bcl.lu/fr/publications/Reglements_de_la_BCL/Regulation_2014_17_EN
/index.html. In case of discrepancies between the French and the English versions, the
French one prevails.
1
The regulation 2014/17 defines “financial companies” as companies whose object
contains at least one of the elements detailed below:
 The investment in any entity for any kind of investment;
 The acquisition by subscription, purchase, exchange or any other way of
securities, shares and other equity investments, bonds, receivables, certificates
of deposits and other debt instruments, and in 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;
 To lend funds to its shareholders, subsidiaries, affiliated companies, and/or
any other entity.
Threshold
Based on this new regulation, any financial company having a total balance sheet
amounting to at least EUR 500 million or the equivalent in foreign currency
should be subject to the CBL reporting.
Content and major changes
Every financial company within the threshold shall inform the CBL within one month
that the aforementioned threshold is reached and shall transmit:
 a quarterly statistical balance sheet of the company in line with the CBL
accounting standards;
 quarterly information on transactions; and
 a monthly “security by security reporting”.
By comparison to the current reporting, the main changes are the following:
 harmonisation of the codification (sections, maturities) and review of the
economic sectors listing and type of securities;
 in the quarterly balance sheet: additional breakdown (e.g. creditors based on
affiliate relationship with the lender) and disclosure (e.g. geographical area of
the parent company);
 additional information in the security by security reporting (e.g. affiliate link
between the reporting company and its counterparty).
For more details on the content of each reporting, please refer to the CBL website.
Deadline
Each report must be provided to the CBL at the latest 20 working days following
the end of the period to which it relates. In principle, the last day of each reporting
period should be the reference date for the establishment of statistical reports.
Transition period
The new regulation is entering into force on 1 December 2014.
For companies already in the scope of CBL reporting, the first reporting based
on 2014/17 regulation new rules will apply to the quarter ending 31 December 2014
and will be due on 21 January 2015.
Companies which were not in the scope of CBL reporting until 30
November 2014 will benefit from an additional 6 months period to deliver the
first reports. All CBL reports starting from December 2014 until June 2015 will have to
be delivered on 26 June 2015, at the latest.
Should you have any question on the implementation of such reporting or do you need any
assistance in this regards, please do not hesitate to contact us
…………………………………………………………………………………………………………………….
Anne-Sophie Preud’homme
Partner, Technical Accounting Leader
+352 49 48 48 2126
[email protected]
Véronique Tinel
Partner, Global Compliance Services
+352 49 48 48 2448
[email protected]
Alexandre Leleux
Director, Global Compliance Services
+352 49 48 48 2884
[email protected]
Fabienne Chantelot
Director, Global Compliance Services
+352 49 48 48 2433
[email protected]
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