LuxCMA – Luxembourg Capital Markets Association
Our latest paper “CLOs: A New Dawn for Luxembourg” is now accessible to all our followers! Our Securitisation Working Group touches some interesting points regarding the amendment of the Luxembourg Securitisation Law and illustrates how its modernization is ushering in a new dawn for Luxembourg in CLOs securitisation.
Cross-border investment and simplified taxation are a priority for the EU. Despite the measures taken to remove tax barriers to cross-border investment, obstacles remain in the EU. This initiative aims to introduce a common EU-wide system for withholding tax on dividend or interest payments. It will include a system for tax authorities to exchange information and cooperate with each other.
After more than two years since the pandemic, #LuxCMA had the pleasure to welcome its Members in-person during the LuxCMA Annual General Meeting last Tuesday. Next to the election of our new Board, this meeting was also an opportunity to take stock of the 3 years that have passed since the foundation of the association and what a 3 years it has been! In 2019, 34 players in the local capital markets industry came together to establish LuxCMA. Today, we have now passed the 50 members-mark. A strong indication that not only we are moving forward, but we are headed in the right direction!
The establishment of an European Single Access Point (ESAP) by 2024 is a flagship action of the Capital Markets Union (CMU) Action Plan adopted by the European Commission in September 2020. Aiming to provide an EU wide access to company information, the proposed regulation could have a positive impact on local capital markets. However, a number of significant shortcomings need to be addressed in order for this objective to be obtained.
Distributed Ledger Technologies (#dlt ) will be a major development in the digital transformation and have a significant impact on the financial sector in the decade to come. Our LuxCMA Infrastructure Working Group has the pleasure to release today their latest paper illustrating how DLT can be leveraged by the entire value chain to support the issuance, transfer and servicing of a debt instrument in the capital markets.
Our Best Practice Guidance Notes – Accounting for Non-Performing Loans ("NPL") is now accessible to all our LuxCMA followers. The paper has been published by our LuxCMA Best Practice Working Group - Accounting & Reporting and touches some interesting points regarding the accounting policy and the different treatments which apply to these receivables. The publication will drive you, amongst others, into the notions of collections, interest expenses and impairment on NPL.
How to improve the access to capital markets by companies in the EU and on the functioning of primary and secondary markets in the EU? This is the question that LuxCMA answered through the online targeted consultation conducted by the European Commission open until 25 February 2022.
UPDATE OF THE 26/05/20 PAPER l According to the December infringement package published by the European Commission, the latter sent a reasoned opinion to Luxembourg asking it to correctly transpose the interest limitation rule of the Anti-Tax Avoidance Directive (Article 4 of the Council Directive (EU) 2016/1164). Under current Luxembourg law, securitisation companies covered by Regulation (EU) 2017/2042 of 12 December 2017 (EU Securitisation Regulation) are excluded from the scope of the interest limitation rules. The reasoned opinion follows a formal notice sent to Luxembourg on 14 May 2020.
Our Best Practice Guidance Note - Introduction on receivables is accessible to all #LuxCMA followers. The paper has been published by LuxCMA Best Practice Working Group - Management & Corporate Governance and touches some interesting points regarding the securitisation of receivables and the relevant common reporting. The note is a good tool to navigate the structure of one of the most common type of underlying asset in securitisation transactions and includes the general common scheme of set-up, indications about the servicer and its role, the trustee, the common reporting such as the servicer report and the investors report.
Since the enactment of the Securitisation Law, Luxembourg has proven to be one of the prime locations for securitisation transactions in Europe and has become a hub for the setup of securitisation structures. For the purpose of exchanging views regarding the Luxembourg securitisation business, LuxCMA has set-up a specific task force dealing only with securitisation questions. The first output of this group is the "EU Securitisation Regulation Position Paper". It analyses certain recurrent questions raised in the context of the Securitisation Regulation and shares the views of the task force on these topics.