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The Central Bank has issued a reminder of the requirement to
comply with due diligence provisions regarding certain positions in
regulated entities by 31 March 2012.
Regulated entities are required to confirm compliance in
relation to all persons carrying out Pre-Approval Controlled
Functions (PCFs) who were doing so as at 1 December 2011.
To assist the process, the Bank has published Guidance - In Situ
Pre-Approval Controlled Functions: Confirmation of Due Diligence
undertaken
The Central Bank Reform Act 2010 provides the Central Bank with
a range of powers regarding fitness and probity for persons in
certain positions within the financial services sector. The Bank is
empowered to:
approve or veto the appointment of people to certain
positions
investigate and where appropriate remove or prohibit certain
provisions holders; and
set statutory standards of fitness and probity across the
financial services sector.
Persons in "pre-approval controlled functions" (PCFs)
will require Central Bank approval before they can take these
senior positions. The Regulations also prescribe specific
categories of staff as "controlled functions" (CFs) which
are positions from which individuals can be temporarily or
permanently removed or prohibited.
The new requirements are being introduced on a phased basis.
From 1 December 2011 existing and new staff in PCFs will be subject
to the regulations and standards. Firms are required to notify the
Central Bank of each individual in the organisation in a PCF by 31
December 2011. From 1 March 2012 new appointments to less senior
positions (CFs) will be subject to the Regulations and standards.
From 1 December 2012 the Regulations and Standards will apply to
all staff and existing CFs.
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.
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The Risk and Regulation Monthly provides a summary of the key International, European and UK regulatory developments and pertinent regulatory activity affecting the Financial Services industry.
Existing funds which no longer invest after July 22, 2013 are not required to comply with the provisions of the KAGB, even if the manager of such funds also manages funds which still make investments.
The purpose of this investment memorandum is to provide an overview of the investment vehicles (i.e. regulated, lightly regulated and unregulated) that Luxembourg offers to (foreign) entrepreneurs and managers.
The FSA has been in discussions with the banks with regard to them providing appropriate redress for affected customers in relation to the mis-selling of payment protection insurance.
The Court of Justice of the European Union has ruled that VAT on investment management fees paid by the trustees of a UK defined benefit pension scheme is irrecoverable under a VAT exemption for special investment contained in two EU Directives.
The draft legislation transposing the European Union’s Alternative Investment Fund Managers Directive into Luxembourg law was submitted to the grand duchy’s Chamber of Deputies by finance minister Luc Frieden on August 24.
Directive 2011/61/EU on Alternative Investment Fund Managers comes into force on 22 July 2013, and aims to provide common requirements across all EU States for the management or sale of Alternative Investment Funds by Alternative Investment Fund Managers within the EU.
A summary of the most recent financial regulatory developments.
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