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ARTICLE · 18 JUNE 2026

Luxembourg Securitisation Law Proposed Amendments

The Luxembourg government has filed a bill of law proposing targeted amendments to the country's securitisation framework, building on 2022 reforms to address evolving market practices. The proposed changes focus on expanding financing methods, strengthening insolvency protections, enabling compartment-to-compartment investments, broadening security package flexibility, refining active management rules, and clarifying statutory subordination provisions for securitisation vehicles.

LuxembourgFinance and Banking

Background

On 8 June 2026, the Luxembourg government approved and authorised the filing with the Chambre des Députés of the bill of law No. 8761 amending the amended law of 22 March 2004 on securitisation (the Securitisation Law) (the Bill of Law). The government decision also requested the opinion of the Conseil d’État. The explanatory statement presents the initiative as a set of targeted amendments designed to further modernise the Luxembourg securitisation framework, enhance competitiveness and provide greater legal certainty whilst preserving investor protection.

The Bill of Law builds on Luxembourg’s recent securitisation reforms and, in several areas, revisits provisions that were already amended in 2022 in order to reflect how market practice has evolved since then. As described in the explanatory materials, the proposed changes focus in particular on financing methods, collective proceedings, active management of securitised risk portfolios, compartment-to-compartment

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