On 31 May 2018, the Law of 30 May 2018 transposing MiFID II into Luxembourg law was published in the Mémorial (the Luxembourg Official Journal).
The new law aims at:
- transposing Directive 2014/65/EU on markets in financial instruments (MiFID II);
- transposing Article 6 of Commission Delegated Directive (EU) 2017/593 with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits;
- implementing Regulation (EU) No 600/2014 on markets in financial instruments (MiFIR);
- the Law of 5 April 1993 on the financial sector, as amended;
- the Law of 23 December 1998 establishing a financial sector supervisory commission ("Commission de surveillance du secteur financier"), as amended;
- the Law of 5 August 2005 on financial collateral arrangements, as amended;
- the Law of 7 December 2015 on the insurance sector, as amended; and of
- the Law of 15 March 2016 on OTC derivatives, central counterparties and trade repositories and amending different laws relating to financial services; and
- repealing the Law of 13 July 2007 on markets in financial instruments, as amended, with the exception of its Article 37.
The text was adopted by the Luxembourg Parliament (Chambre des Députés) on 15 May 2018 and entered into force on 4 June 2018.
The new Law transposes the provisions related to the markets in financial instruments into a specific sector Law which recasts the Law of 13 July 2007 on markets in financial instruments. In addition, the new Law implements the provisions relating to investment services or activities by amending the Law of 5 April 1993, namely the Law on the Financial Sector (LFS).
As regards specific provisions of MiFID II having an impact on the investment management activity, it is worth noting that the Law of 30 May 2018 does not bring any substantial amendment to the text of the Directive.
The full text of the Law of 30 May 2018 is available on the website of the Mémorial via the following 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.