Banks and Professionals of the Financial Sector

Banking and Professionals of the Financial Sector
The financial regulatory environment is and will continue changing significantly, both at global as well as at local level. MiFID II, AML, EMIR Refit or CSDR are just a few examples of a long list of topics that have to be treated and that as such require increased investment - in terms of time as in resources. 
In order to meet the demands of this ever more complex and fast-moving regulatory requirements, we at PwC can help. Our seasoned and experienced staff are experts in their field, assisting you in understanding business, regulatory and operational impacts of any new regulations, providing you with hands-on advice, licensing and implementation support and best-practice sharing. 

Hot topics

Business & IT outsourcing

Who is subject to the new regulations?

Whatever your entity type (credit institution, PFS, e-money institution, payment institution, etc.), if you are (or plan to be) involved in IT or business outsourcing, you are subject to the new regulations concerning these matters.

What is IT & Business Outsourcing all about?

Recent regulatory changes favour a review of the operating model so that new opportunities can be identified to streamline processes even further and reduce costs. The question is how institutions can remain compliant by implementing the necessary actions and monitoring them on a continuous basis, while bearing in mind that they are ultimately responsible for their activities at all times.

EBA Guidelines on Outsourcing Arrangements applicable to Banks and Investment firms will enter into force on 30 September 2019 and CSSF Circular is expected soon.

Central Securities Depository Regulation (CSDR)

Who is subject to the CSDR? 

Most Banks in Luxembourg will be impacted in one way or another by the CSDR. Generally the CSDR is applicable for all EU regulated CSDs or ICSDs. However, the impacts of this regulation may downstream on the individual participants; either directly via regulatory implications (e.g. settlement discipline or reporting on internalised settlement) or indirectly via the interaction with the CSDs and ICSDs

What is the CSDR all about? 

The aim of the CSDR is to provide an increased level of resilience and reshape the post-trade value chain within the European Union. Major impacts of the regulation include:

  • Increased requirements for the automation of post-trade management
  • An implementation of settlement discipline measures including systems that allow CSDs to identify, track and gather data for failed settlements and additional costs for settlement fails with no discretionary management
  • Daily reconciliation with CSDs of all the positions
  • The first quarterly internalised settlement reports are due by 12 July 2019

Find out more

Benchmarks Regulation (BMR)

Who is subject to the BMR?

If you administer, contribute or use a benchmark on your behalf or that of your clients you fall within the scope of the BMR. Given the intrinsic link between benchmarks and the LIBOR reform, you will also be affected when LIBOR is discontinued after 31 December 2021. 

What is the BMR all about?

The aim of the BMR is to:

  • Improve governance and controls over the benchmark process;
  • Enhance the quality of input data and methodologies used by benchmark administrators;
  • Ensure that contributors to benchmarks and the data they provide are subject to suitable checks; and
  • Protect consumers and investors through greater transparency and suitable rights of redress

Find out more

Governance

Who is subject to governance rules?

As a bank or a professional of the financial sector, you are subject to corporate governance rules detailed in various regulations (depending on your status).

What is Governance all about? 

Regardless of the services that you provide to your clients, the aim of the regulatory framework on corporate governance is to define and implement:

  • A clear organisational structure
  • Internal-control framework and mechanisms
  • Sound administrative and accounting procedures
  • Consistent lines of responsibility and reporting
  • Effective processes to identify manage and report risks
  • A risk-management culture

PSD2

Who is subject to PSD2?

As a payment service provider located in the EEA, you are subject to PSD2 for all transactions performed within the EEA in any currency, including specific requirements when the other end of the transaction is located outside the EEA. Additional technology-related requirements apply if the payment service provider provides online access to payment accounts.

What is PSD2 all about?

The aim of framework of PSD2 is to enhance the regulatory framework for payment services within the EEA by:

  • Regulating and harmonising payments’ market process within the EEA (e.g. in terms of execution time frames and value dates; processes to be implemented; information disclosed, etc.)
  • Improving system security
  • Strengthening consumer rights and reducing overall costs

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Contact us

Olivier Carré

Regulatory & Compliance Advisory Services Leader, PwC Luxembourg

Tel: +352 49 48 48 4174

Cécile Liégeois

Regulatory & Compliance Advisory Services - Banking - Partner, PwC Luxembourg

Tel: +352 49 48 48 2245

Isabelle Melcion-Richard

Regulatory & Compliance Advisory Services - Banking - Director, PwC Luxembourg

Tel: +352 49 48 48 2469

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