On 23 December 2016, the Luxembourgish Law on Market Abuse was
published in Memorial A n°279. It repeals the previous Law of 9
May 2006 on Market Abuse and supplements Regulation (EU) n°
596/2014 of the European Parliament and of the Council of 16 April
2014. It also transposes the Directive 2014/57 (EU) on criminal
sanctions applicable to market abuses.
The Law clarifies the powers of the CSSF and provides the
authority with a strengthened leeway regarding market abuse. It
features procedures for investigations, supervision as well as
cooperation with foreign competent authorities.
The Law also provides with detailed administrative and criminal
sanctions in relation to market abuse.
The term of imprisonment applicable to a natural person
committing market manipulation or insider dealing ranges from 3
months to 4 years. This includes attempts of the said offences.
Unlawful disclosure of inside information can amount to 8 days to 2
years of imprisonment.
Along with significant criminal or administrative fines (ranging
from EUR 500 000 to EUR 5 000 000 for a natural person and from 1
000 000 to 15 000 000 or 15 percent of the annual turnover for a
legal person), legal and natural persons committing market abuse
may notably be subjected to the following administrative
an order requiring the person
responsible for the infringement to cease the conduct and to desist
from a repetition of that conduct;
withdrawal or suspension of the
authorisation of an investment firm;
a temporary or permanent ban of a
person discharging managerial responsibilities within an investment
firm or any other natural person, who is held responsible for the
infringement, from exercising management functions in investment
Eventually, the Law emphasizes on whistleblowing procedures and
mechanisms of reporting in case of actual or potential
infringements of the Regulation.
The Law entered into force on the 30th December 2016,
three clear days after its publication on 27 December 2016.
The Law (only in French) is available on this Link.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
25 Apr 2017, Business Breakfast, Luxembourg, Luxembourg
KPMG Luxembourg is pleased to invite you to a networking breakfast for Family Offices and Private Bankers. On this occasion, we will present the latest developments around hidden profit distributions to non-shareholders.
Here in Luxembourg, LPEA are holding an event which will offer new initiatives by bringing General Partners (GPs) and Limited Partners (LPs) together to examine and speak on the industry from the “360” perspective, leaving no stone unturned. We are a sponsor of the event, as well as having a speaker present. David Capocci, Partner and Head of Alternative Investments will be offering his own insight on the industry nowadays.
The conference will centre on the new tax normal, full transparency, and specifically the role of private bankers in this new age. Originally perceived as a threat to existing business models, full tax transparency may actually hold new opportunities for private bankers.
Investigating and pursuing serious and complex fraud
claims is about staying ahead of the game. Most serious frauds will
have an international element, whether in the substantive action or
in asset recovery.
According to the Law the burden of proof is on the claimant which is an established principle and also stated under Article 1 of the Law.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).