LUXEMBOURG Law and Practice Contributed by: Andreas Heinzmann, Valerio Scollo and Angela Permunian, GSK Stockmann
3.2 Legacy Players’ Implementation of Solutions Introduced by Robo-Advisers In some cases, legacy players are implement - ing solutions introduced by robo-advisers. The Luxembourg bank, Banque et Caisse d’Epargne de l’Etat (BCEE), was the first retail bank in Luxembourg to launch a robo-adviser service called SpeedInvest in 2017, which helps allocate investments into certain funds. Since then, other banks have also introduced investment services based on automated tools, such as Investify, Bir - dee and KeyPrivate. 3.3 Issues Relating to Best Execution of Customer Trades In accordance with the rules on best execution, the Financial Sector Law requires robo-advisers and traditional advisers to take sufficient steps when executing orders to obtain the best pos - sible result for their clients. This includes price, costs, speed, likelihood of execution and set - tlement, size, nature or any other consideration relevant to the execution of the order. However, if the customer has given specific instructions, the order must be executed in accordance with such instructions.
sation from the CSSF, provided that the services shall be provided: • solely at the initiative of a Luxembourg client; • without any marketing activities; and • not to circumvent the legislation of any mem - ber state. In addition, reverse solicitation is specifically tar - geted at professional investors and should not be considered a method for placing investments or offerings. 3. Robo-Advisers 3.1 Requirement for Different Business Models While there are no regulatory requirements in Luxembourg tailored specifically for services provided by robo-advisers, providing digital or automated services is, however, subject to the same regulatory requirements as non-automat - ed financial advisers. Depending on the busi - ness model of the robo-adviser, specific licences will be required in accordance with the Financial Sector Law, which implements the relevant pro - visions of MiFID II into national law. For example, if automated technology is used to provide personal recommendations to a cli - ent in respect of transactions relating to finan - cial instruments, such service provider will need to be authorised by the CSSF as an investment adviser. Additionally, the Blockchain IV Law introduced the “control agent” which is respon - sible for managing and verifying dematerialised securities and providing a secure alternative management. Overall, this development can enhance direct distribution models, including robo-advisers.
4. Online Lenders 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities
With regard to regulation on online lenders, the main difference relates to whether the borrower is a consumer or not. Luxembourg legislation on lending in a professional or commercial context does not in principle separate different catego - ries of legal entities based on, eg, the size of the business or the sector in which the borrower operates.
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