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ARTICLE · 22 JUNE 2021

Private Debt Funds: CSSF Clarifies Concept Of Lending To The "Public"

Arendt & Medernach
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In it the CSSF clarified its interpretation of the concept of lending to the "public", an information relevant for the non-bank lending industry and, in particular, for private debt funds with a loan origination activity.

LuxembourgFinance and Banking
Claude Niedner
Claude Niedner
Nicolas Bouveret
Nicolas Bouveret
Claudia Hoffmann
Claudia Hoffmann
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ON 15 JUNE 2021, THE CSSF PUBLISHED AN UPDATED VERSION OF ITS Q&A ON THE SCOPE OF PERMITTED ACTIVITIES FOR PROFESSIONALS OF THE FINANCIAL SECTOR.

In it the CSSF clarified its interpretation of the concept of lending to the "public", an information relevant for the non-bank lending industry and, in particular, for private debt funds with a loan origination activity.

Background

In general terms, the granting of loans to the public on a professional basis is a regulated activity which is subject to authorisation by the CSSF under Article 28-4 of the law of 5 April 1993 on the financial sector. However, the law does not provide a legal definition of the term "public" for this purpose.

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