A multitude of public key players play a major role in the financial industry. Their role is essential to meet future challenges and ensure that Luxembourg's economy is in good health.
Ministry of Finance
Among the responsibilities of the Ministry of Finance is the national, European and international tax policy, as well as monetary, financial and exchange policy.
The ministry is also competent in treasury and budgetary matters and for financial and insurance legislation.
Luxembourg for Finance (LFF)
Jointly created by the state and key private players in the financial sector in 2008, the mission of Luxembourg for Finance, the agency for the development of the financial sector, is to make the financial sector better known to professional actors, potential investors and the media abroad.
The agency regularly organises finance seminars in the major financial centres around the world. Luxembourg for Finance regularly publishes technical brochures and other documentation on products and services of the Luxembourg financial centre, and is very active in online communication.
High Committee of the Financial Centre
To allow the financial centre to maintain its assets, former Minister of Finance Luc Frieden instated the High Committee for the Financial Centre. Under the chairmanship of the Minister of Finance, the High Committee of the Financial Centre rallies the regulatory authorities (Insurance Commission, Central Bank, Financial Sector Supervisory Commission CSSF), the professional associations (ABBL, ALFI, ACA and support PFS), large law firms and trustees as well as the government.
Designed like a think tank, it is a consultative body which aims to better coordinate all efforts to promote the financial sector. According to Luc Frieden, it is all about 'being well informed, conducting a detailed analysis of the developments that are at work in order to identify the challenges and to launch concrete actions.'
Luxembourg Central Bank (BCL)
The Luxembourg Central Bank (Banque centrale du Luxembourg), was founded on 1 June 1998, at the same time as the European Central Bank (ECB). It succeeds the Luxembourg Monetary Institute founded in 1983 and charged with supervising the financial sector and issuing banknotes.
The Luxembourg Central Bank's prime mission is to contribute to the execution of the missions of the European System of Central Banks (ESCB). It's missions are:
- defining and implementing the European monetary policy;
- conducting exchange transactions;
- holding and managing the official foreign reserves of the member states;
- promoting the good functioning of the payment systems.
The Luxembourg Central Bank also provides services to the government, the financial centre and the entire national economy. It opens accounts, in general only to monetary and financial institutions, but it is not a commercial bank.
The Financial Sector Supervisory Commission (CSSF)
The Financial Sector Supervisory Commission (Commission de surveillance du secteur financier, CSSF) is the competent authority for the prudential supervision of the financial sector.
The CSSF has taken over the tasks previously exercised by the Luxembourg Monetary Institute (IML), which later on became the Luxembourg Central Bank on 1 June 1998. It integrated the responsibilities of the former Stock Exchange Commission (Commissariat aux bourses).
CSSF's prudential supervision of companies of the financial sector aims at:
- promoting a considered and prudent business policy in compliance with the regulatory requirements;
- protecting the financial stability of the supervised companies and of the financial sector as a whole;
- supervising the quality of the organisation and internal control systems;
- strengthening the quality of risk management.
CSSF acts solely in the public interest. It ensures that the laws and regulations concerning the financial sector are enforced and observed and that international agreements and European directives in the fields under its responsibility are implemented.
Commissariat aux Assurances (CAA)
The Insurance Commission (Commissariat aux Assurances, CAA) is the official institution for the supervision of Luxembourg's insurance sector.
Amongs its missions are:
- review of applications for approval of insurance companies, reinsurance companies and insurance intermediaries (agents and brokers);
- prudential supervision of these companies and persons;
- the preparation of draft laws and regulations on the insurance industry;
- coordination of the efforts made by the Luxembourg government to properly expand the activities of the insurance sector in the Grand Duchy of Luxembourg.
Luxembourg Stock Exchange
The Luxembourg Stock Exchange (Bourse de Luxembourg) was founded in 1927 and started its activities in 1929. Since its creation, it has developed an important expertise in the listing and trading of securities from many different regions. For more information, visit the Luxembourg Stock Exchange website www.bourse.lu.