CSSF - Commission de surveillance du secteur financier

06/15/2021 | Press release | Distributed by Public on 06/15/2021 08:05

Adaptation of the FAQ on the statuses of PFS with respect to the PFS status relating to the granting of loans to the public (Article 28-4 of the Law of 5 April 1993 on the[...]

Article 28-4 of the LFS is aimed at professionals whose activity consists in granting, for their own account, loans to the public. Given the increasing number of requests to take a stance regarding the interpretation of the notion of 'public' and the question of when the CSSF considers that a lending activity is directed towards the public, the CSSF updated the FAQ (Part II, Question 52) in order to provide clarification and legal certainty.

In the absence of a legal definition of the term 'public' in the LFS, the CSSF considers that a lending activity is not directed towards the public where:

  • loans are granted to a limited circle of previously determined persons; or
  • the nominal value of a loan amounts to EUR 3,000,000 at least (or the equivalent amount in another currency) and the loans are granted exclusively to professionals such as defined in Article L. 010-1. 2) of the Consumer Code.

In all other cases, the CSSF will carry out an assessment on a case-by-case basis.

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