Following the entry into force of the law of December 21, 2012 on family office activities, the CSSF has informed individuals and entities in Luxembourg already carrying out family office activities that henceforth only a member of one of the regulated professions listed in Article 2 of the law is authorised to carry out the such activities and make use of this title.
Persons established in Luxembourg at the time of entry into force of the legislation, which was published in the Memorial on December 28, and already carrying out family office activities without belonging to one of the designated regulated professions have until June 30, 2013 to achieve compliance.
They should if necessary submit an application to the CSSF for authorisation as a family office under Article 28-6 of the law of April 5, 1993 on the financial sector.
The legislation defines family office activity as providing professional advice or services to individuals, families or private wealth management structures they own, have founded or of which they are beneficiaries. The law does not apply to services provided to or on behalf of a single individual or family, nor to functions such as company directors, foundation board member, the trustee or protector of a trust, fiduciary or attorney-in-fact.
Apart from credit institutions and the newly-created family office category of financial sector professional, individuals and entities authorised as investment advisers, private portfolio managers, corporate domiciliation agents and management service companies, as well as lawyers, accountants, auditors and notaries, may carry out family office activities without further authorisation.
Authorisation as a family office PFS is granted only to legal entities, subject to a minimum share capital of ?50,000 and relating for instance to its central administration, ownership structure and the professional standing and experience of its managers. They are subject to professional confidentiality, transparency of fees and anti-money laundering and financing of terrorism obligations.
Olivier Sciales is a partner at the Luxembourg law firm Chevalier & Sciales.
For any query, please contact:
Chevalier & Sciales
Route de Thionville 51
Tel: +352 26 25 90 30
Fax: +352 26 25 83 88
Mobile: +352 621 531 146