meta_id 2933688

In a decision dated October 8, 2025, the Commission de Surveillance du Secteur Financier (CSSF) imposed an administrative fine of EUR 223,000 on an investment firm for non-compliance with its professional obligations regarding corporate governance. The CSSF identified breaches across multiple regulatory provisions of the amended Law of 5 April 1993 on the financial sector , including Articles 14(2), 17(1)-(1a), 19(3), 40, and 59. The violations were detected between 2019 and 2024 through on-site inspections conducted between 2022 and 2024, information from 2023 closing documents, and responses to an injunction letter dated 18 February 2020. The CSSF identified cases of non-compliance with professional obligations relating to internal governance arrangements in the following areas: Inadequate central administration arrangements; The firm did not comply with the condition of permanent presence in Luxembourg, as neither members of the authorised management nor the Chief Investment Officer reside permanently in Luxembourg. Excessive outsourcing of portfolio management activities outside Luxembourg. The firm did not comply with the condition of permanent presence in Luxembourg, as neither members of the authorised management nor the Chief Investment Officer reside permanently in Luxembourg. Excessive outsourcing of portfolio management activities outside Luxembourg. Shortcomings in the internal control framework; deficiencies in internal control functions that jeopardise the firm's sound and prudent management. Deficiencies in the internal audit and external audit arrangements; Inadequate fit and proper assessment of the Board of Directors. deficiencies in internal control functions that jeopardise the firm's sound and prudent management. Deficiencies in the internal audit and external audit arrangements; Inadequate fit and proper assessment of the Board of Directors.