Can CSSF impose penalties or sanctions for non-compliance?
Yes, the Commission de Surveillance du Secteur Financier (CSSF) has the authority to impose penalties or sanctions for non-compliance with the regulations. The type and severity of the penalties or sanctions imposed will depend on the nature and severity of the non-compliance. Some examples of penalties or sanctions that may be imposed by the CSSF include:
Fines: The CSSF may impose fines on financial institutions or professionals that are found to be in non-compliance with the regulations. The amount of the fine will depend on the nature and severity of the non-compliance.
Revocation of licenses: The CSSF may revoke the licenses of financial institutions or professionals that are found to be in non-compliance with the regulations. This means that the institution or professional will no longer be able to operate in the financial sector in Luxembourg.
Suspensions: The CSSF may suspend the operations of a financial institution or professional for a period of time if they are found to be in non-compliance with the regulations.
Public censure: The CSSF may publicly censure a financial institution or professional that is found to be in non-compliance with the regulations. This may include issuing a press release or issuing a statement on the CSSF's website.
Restrictions on activities: The CSSF may impose restrictions on the activities of a financial institution or professional if they are found to be in non-compliance with the regulations. This may include, for example, restrictions on the types of products or services that the institution or professional can offer.
It's worth noting that penalties and sanctions will vary depending on the nature of the non-compliance and the CSSF will consider the gravity of the infringement, the potential impact on the integrity of the financial markets, the degree of fault or negligence and any previous infringements before imposing sanctions.