Best Practice

The Best Practice WG is composed of 3 sub-groups: Accounting & Reporting; Management & Corporate Governance; UBO Identification & KYC. Each of them has different missions but all have the same purpose of finding practical solutions/answers to practical problems.

Accounting & Reporting

In this subgroup, we are connected to the main market players across range of corporate service providers and auditors in Luxembourg. We are looking into different hot topics in connection with the Capital market accounting and reporting.

Capital market participants are often confronted with varying practices among the numerous practitioners active in Luxembourg  when it comes to accounting, presentation of the financial statements and reporting.

The purpose of the group is to identify any recurring issues or inconsistencies in such practices and to analyse whether it is possible to work out practical recommendations and good market standards which address such issues and align the market approach throughout different players.

Management & Corporate Governance

The focus of this sub-group is to provide existing and future members of the securitization vehicles (FVCs) management bodies with practical insights into corporate governance matters.

The publications prepared by the sub-group members present the views of market practitioners on key aspects concerning management as well as governance, considering the different types of underlying assets of the FVC. These guidance notes provide valuable information with respect to the operational aspects of securitization structures, the parties involved and common reporting requirements and thus assist the directors / managers of FVC with the performance of their duties.

The sub-group has also created a reporting calendar setting out the legal deadlines applicable to FVCs and this straightforward tool assists management with the monitoring of FVCs’ compliance with their applicable reporting obligations.  

UBO Identification & KYC

The industry is experiencing more and more regulations being enforced and applied as Luxembourg’s existing AML and CTF regulations are constantly being strengthened and updated to fight Money Laundering and to counter the Financing of Terrorism (AML/CTF).

With these ever-evolving regulations, it can be difficult for individuals working within the Capital Market space to apply laws and regulations to their day to day practice. This is often because these laws and regulations can be issued without taking into account the intricacies of Capital Markets structures.

In this group, concerns related to AML, KYC and compliance, amongst others, are being analysed and discussed from the point of view of the Capital Markets. Our members are experts in the field and work to issue guidance, practical solutions and good market standards to help market participants stay up to date and navigate the evolving environment whilst remaining in compliance with laws and regulations.