Canada    FinTech Guide    Chapter 14    Luxembourg


14. RegTech
Luxembourg  Luxembourg

The use of technology to address regulatory challenges has been around for decades. Nevertheless, like FinTech, RegTech appears to be a new industry.

Regtech has become an important area of focus for Luxembourg’s financial centre.



Legal Affairs


Commercial, craft and industrial activities, as well as some liberal professions, are subject to a business permit (autorisation d'établissement or autorisation de commerce).

This permit is granted to businesses (the professional operating under his/her own name or the company) within a 3-month deadline, which may be extended by another month under some conditions, if:

  1. the person responsible for the operation or management of the business satisfies the required legal conditions of qualification and professional integrity for the activity concerned;
  2. and the business has a fixed physical establishment in Luxembourg (no so- called 'letterbox companies').

Costs : around EUR 2,000



Economic Conditions


Service providers such as investment funds are subject to many obligations, mainly concerning the filing with the CSSF of information required by law in a specific format and through specific channels. Fintechs is an essential partner for all these service providers.

27 Regtechs divided according to their own expertises in regulatory reporting, risk management, identify management and control and compliance.

Three Luxembourg Regtechs are recognized worldwide (November 2018) in the list of the 100 most innovative regtechs in the world according to the Regtech Analyst Institute:

  • EMU (the "tripadvisor" of the investment fund industry)
  • ALGOREG specializes in customer registration procedures for regulated financial institutions with a video-based solution
  • Governance.com, specialized in the governance of investment funds


Contributing Authors

Felten & Associes

Bernard Felten
Luxembourg

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 August 2019