CSSF | Increase in fees with adoption of new Grand-Ducal Regulation

The CSSF levies fees on supervised persons and institutions to cover personnel costs as well as general financial and operating costs. The level of fees is set by a Grand-Ducal Regulation which is updated from time to time and most recently by the Grand-Ducal Regulation of 23 December 2022  (the “New Grand-Ducal Regulation”) which entered into force on 1 January 2023 replacing the preceding Grand-Ducal Regulation of 17 December 2021.

The New Grand-Ducal Regulation introduces quite significant increases on the fees compared to previous years; the significant increase has been justified by the CSSF on the basis of projected future budgets needs of the CSSF, which are expected to be higher due to the lack of significant increases during the last few years, inflation as well as increased staffing needs.

Of particular note, are the following increases:

• For credit institutions and professionals of the financial sector ("PFS"), in addition to an increase in the annual fees, the single lump sum fee for the examination of each authorisation request of a new credit institution has increased from EUR 50,000 to EUR 75,000; the single lump sum fee for the examination of each authorisation request of specialised and support PFS, payment institutions and electronic money institutions has increased  from EUR 20,000 to EUR 30,000;

• As regards issuers for which Luxembourg is the home Member State under the Transparency Law or persons who have applied without the consent of an issuer for admission of its securities to trading on a regulated market, the annual fee has increased from EUR 20,000 to EUR 30,000;  for issuers of shares with a market capitalisation rate of more than EUR 10,000,000,000 as at 31 December of the financial year preceding the billing year, the annual flat fee has increased from EUR 65,000 to EUR 90,000;

• Most of the fees in connection with the Takeover Law have also increased quite significantly; for example the fixed portion of the fee payable by persons making a public takeover bid or bid falling within the scope of the Takeover Law, where the CSSF is the competent authority for the supervision of the bid, has increased from EUR 50,000 to EUR 70,000.