CSSF on-site inspections – a matter of when, not if
Due to a steady increase of EU-wide coordination between national and supranational regulatory authorities, the CSSF has significantly strengthened its regulatory inspection program in recent years.
As CSSF inspections become increasingly granular and switch from a top-level approach to a targeted, thematic one, preparing for upcoming CSSF inspections has become a core pillar of the regulatory risk management program for Management Companies and AIFMs.
One out of two ManCos does not feel well prepared for an upcoming inspection
Our 2022 KPMG Large-Scale ManCo Survey revealed that 75% of all ManCos participating in our survey had at least one CSSF on-site inspection in the last three years. Paradoxically, while regulatory scrutiny is at an all-time high, only 50% of ManCos that took part in our survey feel well prepared for an upcoming regulatory CSSF inspection.
How we can help
Our expertise at your service: Simulating the form and content of the CSSF inspection experience
KPMG’s Regulatory and Risk Consulting team has a successful track record in supporting our clients in their regulatory preparedness and mock inspection exercises. Our mock inspection service is run by KPMG senior professionals that have previously been part of the CSSF inspection team, are dedicated to the Alternative and Asset Management sector and bring their extensive industry knowledge to the table.
What we offer
Rehearsal opportunity
Benefit from a role play situation in which KPMG senior professionals will simulate the CSSF inspection process
Identify areas of weakness, before the CSSF does
Benefit from our direct feedback on your inspection readiness in order to assess your regulatory risk exposure
Benchmarking your ManCo against your peers
KPMG has conducted mock inspections and regulatory health checks for a number of ManCos and AIFMs, which allows us to benchmark your arrangements against your peer group
Leverage our market intelligence observatory
Leveraging our interactions with our clients and with the Regulator, KPMG is able to share with you the latest insights from the CSSF’s inspection program
A closer glance: detailed features
Access Market Intelligence
Leverage on the identified market pain points and/or heavily scrutinized areas.
High level review of Policies and Procedures
Explore key operational protocols, weaknesses and evidence of adequate formalization of critical processes.
Ensure Regulatory compliance
Criticality assessment, convergence plan and document completeness vs market benchmark.
Modularized approach tailored to your needs
Our mock inspection program is structured across several modules covering the full value chain of activities by a ManCo or AIFM. You can pick the modules that are of interest for you to optimally prepare for a regulatory inspection.
Our mock inspection modules include:
- Governance
- Risk Management
- Delegation Oversight
- Portfolio Management
- Marketing
- AML
- Compliance
- IT
- ESG Control Framework
- Specific thematic topics (e.g. cost & charges, branch oversight, EMIR etc.)
Want to know more?
Contact us
Alan Picone
Head of Consulting Asset Management & Alternatives,
KPMG Luxembourg
Phone: +352 22 51 51 7329
Jean-Christophe Cabilin
Partner, Regulatory & Risk Consulting,
KPMG Luxembourg
Phone: +352 22 51 51 7650