Press release regarding mortgage intermediaries

The Commission de Surveillance du Secteur Financier (CSSF) would like to inform the public that the Law of 23 December 2016 on mortgage loan agreements (the “Law”) entered into force at the beginning of January 2017. The Law introduces a new Chapter 6 in the Consumer Code titled “Mortgage loan agreements”, the purpose of which is to regulate mortgage loan agreements and, in particular, it introduces the status of mortgage intermediary into Luxembourg law.

The activity of mortgage intermediaries requires, henceforth, an authorisation from the Minister of Finance after examination of the file by the CSSF.

In order to be authorised, the persons interested must produce evidence of their professional standing and they must have appropriate knowledge and competence in the field of mortgage loan agreements. Moreover, the authorisation is subject to justification of the existence in Luxembourg of the central administration.

The mortgage intermediaries, who already carried out their activities before the entry into force of the Law, must comply with the new requirements by 21 March 2017.

Once they are authorised in Luxembourg, mortgage intermediaries benefit from the European passport and can exercise their activity by establishing branches or by way of free provision of services in all the Member States of the European Union.

The CSSF supervises mortgage intermediaries. The CSSF may penalise persons who do not comply with the provisions of the Law to which they are subject and impose administrative fines of up to EUR 250,000.