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CSSF: The UK deemed equivalent in Luxembourg for the application of third-country regime under MiFIR

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  • Financial services and markets regulation
  • Financial services


On 24 December 2020, the CSSF published a press release (“Press Release”) announcing the publication of CSSF Regulation 20-09 amending CSSF Regulation 20-02 on the equivalence of certain third countries with respect to supervision and authorisation rules for the purpose of providing investment services or performing investment activities and ancillary services by third-country firms (“Regulation 20-09”).


In the absence of an equivalence decision under article 47(1) of Regulation (EU) No 600/2014 (“MIFiR”), a third-country firm, subject to conditions set forth in Circular CSSF 19/716 (as amended by Circular CSSF 20/743), can provide investment services, investment activities or ancillary services in Luxembourg to eligible counterparties and professional clients per se without setting up a branch in Luxembourg ( “third-country regime”).

In order to comply with the third country regime, a third-country firm must be subject to supervision and authorisation rules that are deemed equivalent by the CSSF to those laid down by the Luxembourg Law of 5 April on 1993 on the financial sector, as amended. The purpose of Regulation 20-09 is to recognize the UK supervision and authorisation rules as equivalent and allow UK firms to benefit from the third-country regime in Luxembourg.

Nonetheless, the Press Release pointed out that this decision can be renounced if the CSSF recognizes that the conditions on which it was based are no longer applicable. To that effect, the CSSF will continue to monitor regulatory framework in the UK relating to the supervision and authorisation of firms providing investment services and activities after 31 December 2020.

Entry into force

Regulation 20-09 will enter into force on 1 January 2021. In order to benefit from the third country regime, the UK firms must submit an application file to the CSSF following the procedure provided in sub-section 3 of CSSF Circular 19/716 and fill in the application form provided in Annex II thereto.