Luxembourg: Securitisation

This country-specific Q&A provides an overview of Securitisation laws and regulations applicable in Luxembourg.

  1. How active is the securitisation market in your jurisdiction? What types of securitisations are typical?

  2. What assets can be securitised (and are there assets which are prohibited from being securitised)?

  3. What legislation governs securitisation in your jurisdiction? What transactions fall within the scope of this legislation?

  4. Give a brief overview of the typical legal structures used in your jurisdiction for securitisations and key parties involved.

  5. Which body is responsible for regulating securitisation in your jurisdiction?

  6. Are there regulatory or other limitations on the nature of entities that may participate in a securitisation (either on the sell side or the buy side)?

  7. Does your jurisdiction have a concept of “simple, transparent and comparable” securitisations, following the BCBS recommendations?

  8. Does your jurisdiction distinguish between private and public securitisations?

  9. Are there registration, authorisation or other filing requirements in relation to securitisations in your jurisdiction (either in relation to participants or transactions themselves)?

  10. What are the disclosure requirements for public securitisations?

  11. Does your jurisdiction require securitising entities to retain risk? How is this done?

  12. Do investors have regulatory obligations to conduct due diligence before investing?

  13. What penalties are securitisation participants subject to for breaching regulatory obligations?

  14. Are there regulatory or practical restrictions on the nature of securitisation SPVs?

  15. How are securitisation SPVs made bankruptcy remote?

  16. What are the key forms of credit support in your jurisdiction?

  17. How may the transfer of assets be effected, in particular to achieve a ‘true sale’? Must the obligors be notified?

  18. In what circumstances might the transfer of assets be challenged by a court in your jurisdiction?

  19. Are there data protection or confidentiality measures protecting obligors in a securitisation?

  20. Is the conduct of credit rating agencies regulated?

  21. Are there taxation considerations in your jurisdiction for originators, securitisation SPVs and investors?

  22. To what extent does the legal and regulatory framework for securitisations in your jurisdiction allow for global or cross-border transactions?

  23. To what extent has the securitisation market in your jurisdiction transitioned from IBORs to near risk-free interest rates?

  24. How could the legal and regulatory framework for securitisations be improved in your jurisdiction?