Draft Law 7774 amends the law of 16 July 2019 implementing the EuVECA, EuSEF, MMF, ELTIF and STS securitization regulations in Luxembourg law (the “2016 Law”) in order to implement, on the one hand Regulation (EU) 2019/1238 on a pan-European Personal Pension Product ("PEPP") (hereinafter, "Regulation (EU) 2019/1238"), and on the other hand Regulation (EU) 2019/2088 on sustainability‐related disclosures in the financial services sector (hereinafter, "Regulation (EU) 2019/2088") and Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (hereinafter, "Regulation (EU) 2020/852").
Regulation (EU) 2019/1238 aims to establish a more harmonized European market for individual retirement savings products through a new European retirement savings product, called "PEPP". The PEPP is a regulated, non-compulsory individual supplementary pension product that is characterized by high portability within the European Union.
Regulation (EU) 2019/2088 establishes harmonized rules for financial market participants and financial advisors on transparency with respect to the integration of sustainability risks and the consideration of negative sustainability impacts in their processes, and provides rules on the provision of sustainability information with respect to financial products.
Regulation (EU) 2020/852 sets out criteria for determining whether an economic activity is environmentally sustainable, for the purpose of establishing the environmental sustainability of an investment.
New chapters have been inserted into the 2016 Law in order to set out the attribution of powers between the CSSF and the CAA (Commissariat aux Assurances) and to set out the administrative sanctions for each of the above mentioned regulations.