The EU Capital Requirements Directive (2013/36/EC) (CRD IV) has been implemented into Luxembourg law by the Act of July 23 2015.
This act also amends:
- the Act of April 5 1993 on the financial sector, as amended (the 'Financial Sector Act');
- the Act of December 23 1998 establishing the CSSF (the Luxembourg financial sector regulator), as amended (the 'CSSF Act'); and
- the Act of July 12 2013 on alternative investment fund managers (AIFMs) (the 'AIFM Act').
Certain other provisions of CRD IV that were considered too granular to be incorporated into the Financial Sector Act have been implemented through CSSF Regulation 15-02 of August 14 2015, which relates to the supervisory review and evaluation process applicable to institutions that are subject to the EU Capital Requirements Regulation (575/2013). The purpose of CRD IV, alongside the Capital Requirements Regulation, is to implement the Basel III regulatory framework into European law. Basel III and CRD IV are intended to:
- increase the quality and quantity of capital, including by expanding capital requirements for certain types of risk;
- improve liquidity coverage and harmonise liquidity standards;
- strengthen governance requirements, including remuneration policies; and
- ensure better-coordinated cross-border supervision.