On 22 March 2018, the draft bill of law N°7164 implementing the Benchmarks Regulation 2016/1011 (BMR) was adopted by the 'Chambre des Députés' (Luxembourg Parliament).
Key points of the bill of law
- The bill of law appoints the CSSF as the National Competent Authority to authorise Benchmark administrators and supervised entities, and ensure that the different stakeholders respect the requirements set by the BMR. The Commissariat aux assurances (CAA) has the same functions with regard to entities under its supervision of the insurance sector.
- The bill of law further provides for the necessary supervision and investigation powers for the CSSF and the CAA for the purpose of the BMR. For instance, they can require administrators to disclose specific information used in the determination of a benchmark, perform on-site inspection and impose administrative penalties.
- Regarding the on-site inspection, the bill of law specifies that the CSSF cannot perform on-site inspection at sites of the entities that are not subject to its supervision unless the CSSF has agreed with the targeted entities or has acquired prior authorisation with the "Tribunal d'arrondissement".
- The law also modifies the Consumer Code, requiring from institutions selling loan arrangements and mortgages to provide a separate information sheet to the consumer, stating the name of the index used to determine the borrowing rate, the identity of the administrator, the contingency plans in case the benchmark referenced in the contract is discontinued or its use is restricted in the EU.
The Law will enter into force on the fourth day after its publication in the Mémorial, Luxembourg's official gazette.
The full text of the bill of law is available at the following web 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.