|US||/5||$50||Click for a special offerWebsite|
The public institution that supervises the financial sector in Luxembourg is the Commission de Surveillance du Secteur Financier (CSSF).
Under its jurisdiction fall all market participants, including credit institutions, investment advisers, brokers in financial instruments, commission agents, private portfolio managers, professionals acting for their own account, market makers, underwriters of financial instruments, distributors of units/shares in UCIs, financial intermediation firms, investment firms operating a Multilateral Trading Facility (MTF) in Luxembourg, investment firms operating an Organised Trading Facility (OTF) in Luxembourg, management companies, alternative investment fund managers, undertakings for collective investment, pension funds, authorised securitisation undertakings, fiduciary-representatives having dealings with a securitisation undertaking, regulated markets as well as their operators, multilateral trading facilities, payment institutions and electronic money institutions.
As an EU country the CSSF regulations regarding the retail forex market in Luxembourg are in line with the European Securities and Markets Authority (ESMA) rules, which oblige all forex and CFD brokers to provide a negative balance protection to their customers, to maintain at least 730 000 EUR in operational capital, to file regular reports, to allow external audits, to keep all clients’ funds in a segregated, trust account, to offer leverage no higher than 30:1 and to participate in an investor compensation fund, guaranteeing up to 20 000 EUR of the invested capital.
CSSF cooperates closely with the Banque Centrale du Luxembourg, the European supervisory authorities, including ESMA and other supervisory authorities and resolution authorities in the European Union and globally.
The CSSF replaced the former Commissariat aux Bourses and of the Institut Monétaire Luxembourg is (IML), which on 1 June 1998, became the central bank – Banque centrale du Luxembourg (BCL).
Credit cards are the most popular payment method in Luxembourg. Other payment methods include e-wallets like Skrill, Neteller and PayPal. Luxembourg is part of the Single Euro Payments Area (SEPA).