Luxembourg: Finance and Banking

Luxembourg has enhanced its existing limited partnership regime, adding the special limited partnership to its range of investment vehicles designed for the alternative investment industry...

The text to implement the revised Solvency II Directive (the Implementation Act) was published on 9 January 2026 for public consultation together with the explanatory memorandum.

The Law of 15 June 2004 ("SICAR Law") introduced into Luxembourg law the investment company in risk capital (société d'investissement en capital à risque or "SICAR(s)") which was conceived as a customised...

The Luxembourg law of March 3, 2026 transposed the AIFMD II Directive into national law, introducing significant changes to the regulatory framework governing alternative investment funds. This article examines the practical implications for financing transactions involving Luxembourg AIFs, analyzing how the new rules on loan origination, leverage caps, concentration limits, and enhanced disclosure requirements affect both lenders and borrowers in structured finance arrangements.

As EU fund sponsors (EUFS) grow, they often recognise that establishing a fund in Luxembourg, rather than a fund in their home jurisdiction, increases their chances of attracting capital from across the EU.

Evergreen private credit funds come in a wide variety of formats, but they all have a perpetual life and operate through ongoing fundraising and continuous investment activity

The law of 15 July 2024 on transfer of non-performing loans (the "Law") was published in the Official Journal of the Grand-Duchy of Luxembourg. It aims at implementing Directive (EU)...

On 19 March 2024, the Instant Credit Transfers in Euro Regulation (Regulation (EU) 2024/886 - the Regulation) was published in the European Union (EU) Official Journal.

Following additional inter-institutional negotiations aimed at fine-tuning the text of the provisional political agreement reached with the EU Parliament earlier in July 2023...

CMS Luxembourg's M&A experts analyze the Grand Duchy's evolving dealmaking landscape, examining how regulatory complexity and fund services consolidation are reshaping Luxembourg's dual role as both a domestic market and Europe's premier cross-border structuring hub. The discussion reveals why private equity houses are driving unprecedented consolidation among fund service providers in the world's second-largest investment fund center.

Luxembourg's CSSF imposed a €56,000 fine on Stonehage Fleming Luxembourg S.A. for multiple compliance failures, including significant delays in processing sanctions screening alerts and implementing changes to screening lists. At the time of inspection, hundreds of alerts had been treated with substantial delays and 42 alerts remained completely unnoticed by the financial services provider.

The new regime will apply automatically to sub-participation agreements signed after the law takes effect, though parties can contract out of it. For agreements already in place, it doesn't apply automatically, consistent with non-retroactivity, but parties can choose to opt in.