In a press release, CSSF reiterated that, if the UK exits the EU without ratifying a withdrawal agreement, it would become a “third country” in relation to providing services to EU entities. CSSF emphasised that providing regulated services in Luxembourg without proper authorisation was illegal and therefore subject to sanctions.
UK asset managers and other financial services firms that wanted to continue their business and conclude new contracts in Luxembourg following an abrupt UK departure from the EU should apply for authorisation with the regulator as soon as possible, it said.
Authorisation could take up to 12 months to be granted, CSSF said, so any asset managers without such permissions would have to cease all business as of the date of a hard Brexit. The UK is currently scheduled to leave the EU on 31 October 2019.
The Luxembourg regulator also confirmed it would be offering a transitional regime, which it has set at 12 months. [...]