Administrative sanction of 23 July 2025
Executive Summary
The CSSF imposed a €102,000 administrative fine on JTC (Luxembourg) S.A. on 23 July 2025 for breaches in its professional obligations as a depositary of non-financial assets under the AIFM Law, identified during an on-site inspection from February 2023 to January 2024 covering activities up to December 2022. This enforcement action highlights CSSF's scrutiny of depositary functions, particularly risk assessment and oversight controls, serving as a warning for similar entities to strengthen compliance amid rising supervisory focus on AIFM depositaries. #
What Changed
This is an enforcement action, not a regulatory change; it enforces existing requirements under Article 51(1) (1st and 7th indents) and Article 51(2) (1st sub-paragraph, 3rd indent) of the amended Law of 12 July 2013 on AIFMs (AIFM Law), and related provisions like Article 92(1) of Commission Delegated Regulation (EU) No 231/2013 (CDR 231/2013). Key breaches include: failure to properly assess risks tied to AIFs' strategies and AIFMs' organization for oversight processes; lack of processes to verify AIFM compliance with delegation rules; and inadequate organization of the depositary function, such as unavailability of key documentation and control evidence before December 2022. #
What You Need To Do
- related entities) must
- Conduct immediate gap analyses on risk assessment processes for AIF strategies and AIFM organization per Article 92(1) CDR 231/2013
- Implement robust verification processes for AIFM compliance with asset delegation rules
- Ensure availability of key documentation and evidence of controls for the depositary function, addressing pre-2022 gaps if applicable
- Develop and test oversight processes, leveraging self-identified improvements and action plans as mitigating factors, as JTC did prior to inspection
- Review internal organization to prevent accumulation of breaches, including severity assessments under Article 51 AIFM Law
Key Dates
Compliance Impact
Urgency: High – This matters due to the fine's size (€102,000), reflecting breach accumulation, severity, and duration, despite JTC's partial remediation; it signals intensified CSSF on-site scrutiny of depositary functions post-2023 inspections, with potential for higher penalties absent proactive controls. Depositaries face elevated enforcement risk, especially with unavailability of evidence pr
Who is Affected
Summary
Administrative sanction imposed on JTC (Luxembourg) S.A.