Managing Risks in Financial Services News

• Flash News: Sound Liquidity Risk Management

  On May 28, 2009, the CSSF issued a new Circular (09/403) related to the management of liquidity risk. At the end of April, the BCL already issued its own regulation on liquidity supervision. The new CSSF requirements for liquidity Risk Management are integrated into the Internal Capital Adequacy Assessment Process (ICAAP) and therefore the ICAAP Circular (07/301) is amended.
  The CSSF Circular 93/104 regarding the definition of a liquidity ratio to be observed by credit institutions is not modified and still applicable. The only change caused by the amendment is that banks do not need to deduct assets given as a guarantee to central banks anymore. Nevertheless, the CSSF is preparing new quantitative rules which will replace the current table B 1.5 during second semester 2009.

  June 2009
  
  
• Press Article: Liquidité : solitaires, mais solidaires, CSSF et BCL prennent leurs responsabilités

  Gian Marco Magrini, Associé, et Thierry López, Directeur, PricewaterhouseCoopers Luxembourg

  Mai 2009
  
  
• Press Article: Le paradigme de la « finance durable » appelé à s'imposer au Grand-Duché

  Gian Marco Magrini, Associé et Banking Advisory Leader et Thierry López, Directeur et Risk Management Advisory Services Leader, PricewaterhouseCoopers Luxembourg

  Mai 2009
  
  
• Press Article: Le premier Risk Manager, c'est le CEO

  Interview avec Thierry López, Leader en Risk Management Advisory Services chez PwC Luxembourg.
  Propos recueillis par Laurent Cortvrindt.

  Avril 2009
  
  
• Press Article: Risk Management for UCITS funds: a long and slow but irreversible process

  The Committee of European Securities Regulators (CESR) has recently (August 2008) released its Consultation Paper on Risk Management Principles for UCITS funds. Although it is true that the European legislation in that field is rather limited, Luxembourg has had its own legislation in place since August 2007: the 07/308 CSSF Circular provides rules of conduct to be adopted by UCITS funds with respect to the use of a method for financial risk management, as well as the use of derivative financial instruments. But what kind of risks are the UCITS funds facing? Do the current regulatory requirements capture all risks? Are there different approaches between the CSSF and the CESR? Let’s try to elaborate some answers.

  Winter 2008
  
  
• Press Article: La liquidité des marchés ne coule jamais de source...

  Désespoir et euphorie alternent au gré des annonces, tantôt de faillites, tantôt de plans de sauvetage. Quand et comment arriverons-nous à trancher le nœud gordien de l’illiquidité des marchés ? Tentative de réponse.

  Septembre 2008
  
  
• Flash News: New Circular on Risk Management for UCITS using financial derivative instruments

  After publication of the implementing Directive 2007/16/EC on eligible assets for UCITS, the Luxembourg regulatory environment applicable to UCITS funds is still evolving. In the middle of the summer, while most of us were starting holidays, the CSSF issued a Circular 07/308 dated August 2, 2007, on "Guidelines for undertakings for collective investment in transferable securities relating to the use of a financial risk management method and the use of financial derivative instruments".

  August 2007