Consumer Protection / Conduct in Luxembourg

What Changed

The most recent update (March 9, 2026) to the Technical FAQ reflects the regulatory framework established by CSSF Regulation No 20-08 (as modified by Regulation No 24-10). The core LTV requirements are: *Primary Residence Loans: First-time buyers: LTV limit of up to 100% Other buyers**: LTV limit of 90%, implemented via portfolio allowance *Buy-to-Let Residential Loans:** Standard LTV limit of 80% Temporary exemption (until June 30, 2025): Lenders may apply LTV ratios up to 95% for up to 10% of annual production *Other Residential Real Estate Loans:** LTV limit of 80% *Own Funds...

What You Need To Do

• *For all lenders
• *Implement dual LTV tracking for borrowers financing new property through sale of existing property, ensuring compliance with both interim and final LTV ratios
• *Document own funds sources carefully, particularly when cash collateral or sale proceeds are used, as these are only permitted for loans with initial LTV below 100%
• *Prepare for June 30, 2025 transition by
• Identifying all buy-to-let loans currently benefiting from the 95% LTV exemption

Key Dates

References

• [1] cssf.lu/wp-content/uploads/Technical_FAQ_on_Regulation_CS...
• [2] cssf.lu/en/Document/cssf-regulation-no-20-08-of-3-decembe...
• [3] bsp.lu/lu/publications/newsletters-newsflashes/consumer-c...
• [4] cssf.lu/en/Document/technical-faq-on-cssf-regulation-no-2...
• [5] esrb.europa.eu/pub/pdf/other/esrb.notification20201218_LT...
• [6] cssf.lu/wp-content/uploads/cssf25_899eng.pdf
• [7] simmons-simmons.com/en/publications/ckiyunxuz1ba50a686os8...
• [8] pwc.lu/en/press/press-articles-2024/fighting-real-estate-...

What Changed

No new regulatory changes or requirements are introduced; this is an enforcement action applying existing rules. Based on patterns in the provided CSSF sanction documents, the sanction likely addresses breaches such as: Failure to cooperate with CSSF requests, e.g., not submitting required AML/CFT questionnaires by deadlines, violating Article 5(1) of the amended Law of 12 November 2004 on AML/CFT. Non-compliance with investment policies, organizational requirements, or conduct rules under the UCI Law (e.g., Articles 41, 43, 109), including improper broker exposures or valuation...

What You Need To Do

• Enhance cooperation protocols
• Review investment compliance
• Strengthen governance
• Training and monitoring
• Self-reporting

Key Dates

References

• [1] cssf.lu/wp-content/uploads/S_95_GFIA_Max-Gain-Capital-S.a...
• [2] cssf.lu/wp-content/uploads/S_90_GFI_Zeus_Asset_Management...
• [3] cssf.lu/wp-content/uploads/S_46_B_X_100125_en.pdf
• [4] cssf.lu/en/Document/administrative-sanction-of-15-october...
• [5] cssf.lu/en/international-financial-sanctions/
• [6] cssf.lu/wp-content/uploads/FAQ_International_financial_sa...
• [7] cssf.lu/wp-content/uploads/2025-AML-CFT-conference-dedica...

What Changed

The original Circular CSSF 08/356 (2008) transposed UCITS III requirements on eligible techniques like securities lending and repos. The amendment via Circular CSSF 25/901 (issued in 2025) introduces updates to reflect post-Brexit adjustments, enhanced ESG considerations in collateral eligibility, stricter counterparty risk limits for OTC derivatives, and improved transparency in reporting.

What You Need To Do

• *Policy Review & Update
• *Risk Management Systems
• *Counterparty Due Diligence
• *Operational Setup
• *Reporting & Disclosure

Key Dates