Luxembourg Investment Firm License

Portfolio Management

Licensed investment firms in Luxembourg can manage client portfolios on a discretionary basis, making investment decisions on behalf of retail and institutional clients in line with agreed mandates and CSSF standards.

Investment Advisory Services

Authorized firms can provide personalized investment recommendations to clients based on their financial situation, risk profile, and investment objectives in full compliance with MiFID II conduct of business rules.

Order Reception and Execution

Licensed firms can receive, transmit, and execute client orders for a wide range of financial instruments across regulated markets and other execution venues in accordance with best execution requirements.

Underwriting and Placement Services

Luxembourg investment firms can provide underwriting and placement services for financial instruments, supporting issuers in raising capital through public offerings or private placements.

CSSF Authorization

All investment firms must obtain prior authorization from the CSSF before commencing operations, demonstrating that the firm meets all required capital, governance, and operational standards set out under Luxembourg and EU financial services legislation.

Minimum Capital Requirements

Applicants must maintain the minimum capital thresholds set by the CSSF, depending on the scope of investment services offered, ensuring the firm has sufficient financial resources to meet its obligations to clients and regulators.

Fit and Proper Standards

All directors and key personnel must demonstrate relevant professional qualifications, adequate experience, and a clean financial and criminal background that satisfies the CSSF's strict fit and proper standards for licensed investment firms.

Compliance and Risk Management Framework

A fully documented compliance program covering AML, CFT, risk management, and MiFID II conduct of business obligations must be established and operational before the CSSF grants authorization to the investment firm.