The CSSF (the Luxembourg Supervisory Authority of the Financial Sector) has issued on 26 January 2011 a communiqué in which it clarifies the concept of a Sukuk in particular as regards the Annexes to the “Prospectus” regulation. This communiqué is issued in order to further strengthen the legal security of…
Banking & Finance
30 November 2010
2011 exemption threshold for securitization vehicles
Further to a letter of the Banque Centrale de Luxembourg (“BCL”) dated 26 November 2010 referring to point 4.3 “Entities subject to the BCL’s statistical reporting” of circular BCL 2009/224 concerning the introduction of a new statistical data collection for securitization vehicles, the exemption…
6 July 2010
New circular on Islamic finance – Indirect tax treatment of Murabaha and Ijara agreements
As mentioned in our previous legal alert, the Luxembourg tax authorities have issued on 12 January 2010 a circular in relation to direct taxes applicable to Murabaha agreements and Sukuk transactions. On 17 June 2010, the Luxembourg indirect tax authorities (L’Administration de l’Enregistrement et des Domaines) have…
24 February 2010
Luxembourg: a hub for Islamic Finance
I. Introduction Well established as a world leader in the investment funds industry (second only to the USA), Luxembourg firmly held its position throughout the economic crisis, totalling EUR 1,840.993 billion net assets under management as at 31 December 2009. This five decade long success story originates from a…
24 February 2010
Issue of a Luxembourg Tax Circular on Islamic Finance
On January 12, 2010, to confirm Luxembourg’s commitment to Islamic Finance, the Luxembourg tax administration has issued a circular L.G.-A No. 55 (12 January 2010) in order to provide guidance on Islamic Finance (the “Circular”). The Luxembourg tax administration refers to Islamic Finance as the “financial…
20 June 2008
Securitization in Luxembourg: some recent clarifications by the CSSF
In April 2008, the Luxembourg Commission for the Supervision of the Financial Sector (the ”CSSF”) published its report for 2007, in which it clarified the legal framework applying to securitization vehicles that are governed by the law of 22 March 2004. In particular, the CSSF addressed the main following issues: A…
27 August 2007
MiFID implemented in Luxembourg
On 11 July 2007, the Luxembourg Parliament approved bill number 5627 amending the law of 5 April 1993 on the financial sector. The bill will come into effect on 1 November 2007. Hereunder, we briefly outline the main amendments: • Transposition of the European Directive 2004/39/CE on Markets in Financial Instruments…
12 March 2007
Information duty of the bank – new Luxembourg judgement of 6 December 2006
A Luxembourg magistrate pursuant to a foreign request (rogatory letter) notified an order to a bank for the purpose of obtaining documents and seizing assets held in the account of a client of the bank The question arose whether the bank has the obligation to inform its client of the existence of the order. This question…
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