The Securitisation Law differentiates between authorised and non-authorised entities. Authorised securitisation vehicles are authorised and supervised by the Commission de Surveillance du Secteur Financier in Luxembourg (“CSSF”), which is responsible for ensuring that they comply with the Securitisation Law and fulfil their obligations.
Authorisation by CSSF entails approval of (i) the articles of incorporation or management regulations of the securitisation vehicle, (ii) the management and (iii) the shareholders.
The directors or managers of a securitisation vehicle or a management company of a securitisation fund must be of good repute and have adequate experience and means required to perform their duties whereby the shareholders must comply with the Luxembourg anti-money laundering laws.
Supervision by CSSF is directed to capture all circumstances which could potentially influence the security of investors which is why CSSF has been vested with wide investigative powers. Common means of supervision are specific legal reporting requirements.
One significant difference between authorised and non-authorised securitisation vehicles is the requirement to appoint a custodian bank applicable to authorised ones. Authorised securitisation vehicles must entrust the custody of their liquid assets and securities to a financial institution incorporated under the laws of Luxembourg or a branch of a foreign regulated financial institution. Another difference would be the authorised securitisation vehicles must appoint a statutory auditor.
Further, securitisation vehicles with issuances above a certain threshold must file quarterly reports for statistical reasons with the Luxembourg Central Bank.
eppf is an authorised securitisation vehicle, which listing with CSSF can be found at the following link: