Luxembourg Market Pulse: Regulatory updates

Insights in this edition

CSSF Feedback Report - Valuation of Less Liquid or Illiquid Funds

Illiquid assets are under the microscope as the CSSF sharpens its expectations on valuation governance, methodologies and controls. Fund managers are now expected to evidence not only robust frameworks, but their ongoing effectiveness across the fund lifecycle. Are your valuation frameworks robust enough to withstand the CSSF’s growing scrutiny? 

Why operational resilience is the new supervisory standard

Regulators are moving beyond policy frameworks to test how operating models perform in practice, from liquidity tools to governance and stress readiness. Operational resilience is becoming the defining benchmark. How resilient is your operating model when tested under real world pressure and supervisory scrutiny?

ELTIF’s moment

ELTIF 2.0 is driving a new phase for private market access, but its success depends on how well managers balance illiquid assets with semi liquid features. Execution, governance and liquidity design will define outcomes. Is ELTIF merely a regulatory evolution, or a more strategic lever than it appears? 

ESMA CSA on Compliance and Internal Audit Functions Key Take

ESMA’s latest supervisory action confirms that compliance frameworks are broadly in place, yet often fall short in practice. Weaknesses in resourcing, independence and real world involvement highlight a persistent governance gap. Can your control functions move beyond formal compliance and stand up to ESMA’s test of effectiveness? 

How tax incentives are accelerating digital transformation in fund management

Luxembourg’s tax incentives are reshaping the economics of digital transformation, turning strategic ambitions into financially supported initiatives. From automation to AI, firms can rethink operating models with tangible fiscal benefits. With funding now available, is digital transformation still a strategic choice or an imperative for fund managers?

Private credit’s liquidity reckoning

Private credit has thrived as a funding engine, but rising market stress is testing its liquidity promises, particularly in semi liquid structures. Redemption pressures and valuation challenges are bringing structural tensions to the surface. Can these evolving fund models continue to deliver when investors need liquidity the most? 

Rethinking risk governance

In a landscape shaped by volatility and geopolitical uncertainty, risk management is no longer about measurement alone. Supervisors now expect evidence that risk frameworks inform real decisions and actions. Can your governance framework demonstrate tangible impact when markets turn and assumptions are challenged?