LUXEMBOURG Law and Practice Contributed by: Andreas Heinzmann, Valerio Scollo and Angela Permunian, GSK Stockmann
9.2 Contractual Terms to Assure Performance and Accuracy
tractual information to customers. Consumer and data protection requirements must also be taken into consideration, as applicable to the specific underwriting processes. 8.2 Treatment of Different Types of Insurance The main types of insurance in Luxembourg are life insurance and non-life-insurance, which are governed by separate legal provisions as out - lined in the Law of 7 December 2015 on the insurance sector, as amended. Life insurance contracts under the Luxembourg legal frame - work provide an important part of Luxembourg’s wealth management offering. In addition, the Consumer Code applies to insurance contracts concluded with consumers, unless specific pro - visions of the Law of 27 July 1997 on the insur - ance contract, as amended, state otherwise. 9. Regtech 9.1 Regulation of Regtech Providers Regtech providers are not directly regulated in Luxembourg. However, they might fall within the scope of the existing financial services regulation depending on their activities. If regtech compa - nies provide services for regulated financial ser - vice entities, they may need to be licensed as a support Professional of the Financial Sector (PFS) in accordance with the Financial Sector Law. Relevant support PFS licences that may be required for regtech providers include authori - sation to act as client communication agent, administrative agent, primary IT systems opera - tor or secondary IT systems and communication networks operator. Regtech entities providing merely technical solutions would not typically be subject to these licence requirements.
There are no specific contractual terms dictated by regulation that financial service firms would need to impose on regtech service providers. In addition to terms following general indus - try practice, if the service provided falls under the scope of outsourcing, specific contractual requirements apply (see 2.8 Outsourcing of Regulated Functions ). 10. Blockchain 10.1 Use of Blockchain in the Financial Services Industry Blockchain-based products and solutions are increasingly used by traditional players of the financial services industry in Luxembourg. For example, the European Investment Bank has continued to develop the digitalisation of capital markets by issuing digital bonds on private and public blockchains. Two out of the total three digital bonds issued so far are governed by Luxembourg law. The euro-denominated digital bonds issued in late 2022 also involved the Cen- tral Bank of Luxembourg, which, together with the Central Bank of France, provided a digital representation of euro central bank money in the form of tokens. Furthermore, in 2024, the CSSF authorised the launch of the first tokenised UCITS fund in its kind in Luxembourg by using a blockchain-enabled transfer agency platform. In addition, since January 2022, the Luxembourg Stock Exchange admits security tokens to be registered onto the Securities Official List (SOL), which marks an important step towards making DLT securities mainstream and enhancing vis - ibility. Due to the current regulatory framework applicable in the EU, security tokens cannot be admitted to trading on a regulated market or
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