Publication of Circular CSSF 24/850 defining the documents to be submitted annually by support PFS and their réviseurs d’entreprises agréés
CSSF
The purpose of this circular is to inform the support PFS of the new arrangements to prepare and submit the documents, described below, by the support PFS and their réviseurs d’entreprises agréés (“REAs”).
These new arrangements are the result of an in-depth review of the objective and content of the information the CSSF intends to receive in the framework of its supervision. The newly introduced tools introduced by this Circular have been defined according to a risk-based approach and with due regard to the principle of proportionality, taking notably into account the services offered by the support PFS to the financial sector.
The Circular repeals Circulars CSSF 12/544 and CSSF 19/727, and it introduces a self-assessment questionnaire to be completed on an annual basis by support PFS and to be submitted to the CSSF as a replacement of the risk assessment report (RAR) previously required under Circular CSSF 12/544. It also simplifies the descriptive report to be provided on an annual basis by support PFS.
Hence, support PFS must transmit on an annual basis:
the self-assessment questionnaire;
the descriptive report, adapted in accordance with Annex 1 to the Circular;
all other documents expected as included in Annex 2 to the Circular (documents expected in the context of the descriptive report and of the financial year-end).
Furthermore, this Circular broadly details the role and engagement of REAs in the context of the statutory audit of support PFS. As regards the engagement of REAs, it establishes a specific regulatory framework applicable to the management letter and introduces a separate report detailing all the test procedures defined by the CSSF. Both documents must be drawn up by the support PFS’ REAs on an annual basis.
In practice, the application of the principle of proportionality and of the risk-based approach implies that the definition and volume of questions and tests applicable depend on the type of authorisation held and on the type of risk to which the support PFS may expose the financial sector.
The REA of a support PFS authorised under Article 29-1 and/or 29-2 of the Law of 5 April 1993 on the financial sector (the “LFS”) is required to perform all the tests applicable to this type of support PFS every year.
The REA of a support PFS authorised under Articles 29-3, 29-5 and/or 29-6 of the LFS must carry out the specific procedures in accordance with a rotation plan established by the CSSF (please refer to the document “Rotation plan” hereunder).
For the first financial year, the CSSF will communicate to the support PFS, via its online MFT system, the content of the self-assessment questionnaire and of the applicable tests for the separate report according to its authorisations and the risk it represents for the financial sector.
The requirements and regulatory framework mentioned above apply for the first time to the financial years closing on or after 31 December 2023.
Any question relating to the Circular or the self-assessment questionnaire should be addressed to psfsupport@cssf.lu.