Covid-19: Flexibility Regarding Reporting For Banks And Financial Service Providers – 19.10.2020 – Coronavirus (COVID-19)


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Covid-19: Flexibility Regarding Reporting For Banks And Financial Service Providers – 19.10.2020


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In its Communiqué of 23 March 2020 on the
subject of regulatory reporting in the context of the COVID-19
crisis the CSSF asks supervised entities to perform their
regulatory reporting when it is due but also offers some
leniency.

The CSSF indicates that if for operational reasons supervised
entities experience difficulties in preparing or validating their
CSSF reporting due to staff not being available, for example
because they work remotely without having full access to all
systems, they should contact it through their usual channels as
soon as possible and ahead of reporting deadlines. The CSSF also
says that during the COVID-19 crisis it will not apply a strict
enforcement policy with regard to reporting if delays are duly
justified. It also specifies that the leeway it applies will be
closely coordinated with national authorities, the ESAs as well as
the European Central Bank.

In addition, the CSSF’s FAQ provides guidance on reporting flexibility
granted to banks and other financial service providers. In
principle, submission on time of regulatory reports is encouraged
but upon reasoned request, the CSSF can grant exceptions to filing
deadlines. The FAQ should be referred to for details on which
reporting obligations are affected for various players, including
banks, payment institutions/electronic money institutions,
investments firms, support Persons of the Financial Sector
(“PFS“), and specialised PFS.

In a Communiqué of 27 March 2020, the CSSF
describes a temporary measure providing flexibility applying to
certain reporting deadlines in the Law of 11 January 2008 on
transparency requirements for issuers (the
Transparency Law“), by granting issuers
an extra two months to make the necessary publications of periodic
information. The temporary measure applies to issuers for which
Luxembourg is the home Member State pursuant to the Transparency
Law for reporting periods ending on 31 December 2019 or after that
date but before 1 April 2020. However, the CSSF expects issuers to
take all necessary and reasonable measures in order to publish
periodic information within, or as near as possible to, the
deadlines set by the Transparency Law and that they inform markets
and the CSSF of anticipated reporting delays. The CSSF also reminds
issuers and holders of securities to comply with ongoing disclosure
requirements in the Transparency Law (such as regarding major
holdings or managers’ transactions) and in Regulation (EU) No
596/2014 on market abuse (“MAR“),
notably regarding inside information. Finally, the CSSF also asks
issuers to refer to the European Securities and Markets Authority
(ESMA)’s Statement of 27 March 2020 on actions to
mitigate the impact of COVID-19 on the EU financial markets
regarding publication deadlines in the context of the Transparency
Directive.

In a Communiqué of 9 April 2020, the CSSF
draws attention to the European Securities and Markets Authority
(ESMA)’s Statement of 26 March 2020, aimed particularly
at credit institutions, regarding the postponement of the reporting
obligations related to securities financing transactions under
Regulation (EU) 2015/23651 (SFTR) and under Regulation (EU) No
600/2014 (MIFIR). The CSSF indicates that it will not prioritise
its supervisory actions towards counterparties, entities
responsible for reporting and investment firms in respect of their
reporting obligations pursuant to SFTR or MiFIR, regarding (i) SFTs
concluded between 13 April 2020 and 13 July 2020, and (ii) SFTs
subject to backloading under SFTR. However, it expects relevant
entities to be sufficiently prepared ahead of the next phase of the
reporting regime, i.e. 13 July 2020, in order to start reporting as
of this date.

  • Extension of deadlines for disclosing financial
    statements and other reporting in the financial
    sector

On 7 May 2020, the Luxembourg Parliament adopted a law extending
the deadlines for publishing annual accounts and related reports
mentioned in certain specific laws of the financial sector during
the state of emergency declared in the context of the COVID-19
crisis, as discussed in our Newsflash on this topic.

This law has to be read in conjunction with the Law of 22 May
2020, which is of a general nature and concerns deadlines for
convening annual general meetings and for filing and publishing
annual accounts, consolidated accounts as well as related reports
for all Luxembourg companies. You can read more on this general law
and the interaction between the two laws here.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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