Diego Ofano

Digital & Virtual Assets

Tokenized Funds: Could the Transfer Agent role be reduced?

Luxembourg’s new CSSF FAQ shows that the main limit to a fully tokenized fund may no longer be technology, but regulation.

6 October 2026 / By Diego Ofano

Funds

Luxembourg Funds & AML - September 2026 Monthly Brief

September did not bring major changes to the Luxembourg fund framework, but several developments deserve attention from AIFMs, Conducting Officers, Compliance Officers and other fund professionals. The main topics were the notification of redemption suspensions, new rules on sustainability claims, Luxembourg’s first risk assessment on financial sanctions, and new cyber security alerts.

30 September 2026 / By Diego Ofano

Funds

Private Credit stress and Luxembourg funds: what should be done now

The private credit market is starting to show signs of stress and Luxembourg is more exposed than it might seem at first sight. Surely, the problem does not start in Luxembourg. The loans are not made to companies in Luxembourg, and many of the investment managers are not based there either. In reality, the economic risk sits elsewhere.

21 April 2026 / By Diego Ofano

Digital & Virtual Assets

Crypto exposure without a Crypto license: when indirect exposure becomes full exposure

A Luxembourg AIF can be fully exposed to crypto-assets. The AIFM, managing the fund, does NOT need to obtain a crypto-specific license. Not because of a compliance lack, but because of how the framework is currently designed. When approaching Crypto exposure in investment funds, the CSSF has drawn a clear line between direct and indirect exposure. In practice, that line might be more theoretical than real.

7 April 2026 / By Diego Ofano

Digital & Virtual Assets

Crypto and UCITS: what has really changed? Very little

On February 4th 2026, the CSSF has published a new FAQ related to the exposure of Crypto-Assets in the UCITS funds. This change in orientation of the CSSF has been taken with enthusiasm by many players. The message that many understood was very simple: crypto on the UCITS funds is now allowed. From now on, UCITS investors will be exposed to crypto-assets. The reality is far from it.

1 April 2026 / By Diego Ofano

Regulation

UCITS VI: why It matters and why the fund industry needs It

18 November 2025 / By Diego Ofano

Regulation

ESMA and the future of EU supervision: Why Europe should build on the CSSF model, not replace it

The European Commission is preparing a proposal to expand central supervision over Europe’s key financial markets, including stock exchanges, clearing houses, and crypto exchanges. The initiative, expected to form part of December’s “Markets Integration Package,” aims to reinforce Europe’s competitiveness and reduce fragmentation across its capital markets. Europe’s markets are often described as fragmented, with many national regulators and hundreds of trading and post-trading entities. A single EU supervisor, similar to the U.S. Securities and Exchange Commission (SEC), seems the solution to bring more uniformity and global weight.

3 November 2025 / By Diego Ofano

Regulation

The ESMA view on CASPs: Substance, control, and oversight

The European Union has made it clear: crypto is now part of the regulated financial system. With MiCA finally in place, crypto-asset service providers, CASPs, have to meet the same kind of expectations that apply to any other financial firms. The ESMA goal is simple: make authorization consistent across the European Union. ESMA wants all regulators to apply the same standards, whether a company applies in Paris, Madrid, or Vilnius. A firm that wants a license will need people, systems, and real decision-making power inside the EU.

8 October 2025 / By Diego Ofano

AML & Financial Crime

Implementing an AML/CFT Due Diligence framework for Virtual Assets investments

In the past decade, virtual assets have grown from a $10 billion niche market to a trillion-dollar industry, reshaping global finance, with Luxembourg emerging as a key hub for their adoption and regulation. As of mid-2024, the Commission de Surveillance du Secteur Financier reported a 30% increase in the number of registered Virtual Asset Service Providers compared to the previous year, highlighting the growing institutional and alternative investment fund interest in digital assets

18 March 2025 / By Diego Ofano

Digital & Virtual Assets

Tokenization in the Fund Industry: why it is the future but not yet the present, and a possible solution

Tokenization of shares has the potential to bring significant innovation to Luxembourg's financial services sector and surely worldwide, offering opportunities to improve processes and operational efficiency in the Investment fund Sector. But today, is tokenization truly beneficial for an investment funds in Luxembourg? The answer is most probably NO - at least not within the current regulatory framework.

17 December 2024 / By Diego Ofano

Regulation

How Luxembourg can compete with Ireland for the UCITS market leadership - A comparative review

Luxembourg has long played a leading role in the European asset management industry, particularly in liquid assets, with the UCITS framework solidifying its reputation for regulatory excellence. Recently, however, Ireland has become the main European attractive destination for liquid asset flows, pushing Luxembourg to expand its expertise in alternative investments such as private equity, infrastructure, and real estate.

12 November 2024 / By Diego Ofano

AML & Financial Crime

The decline of Suspicious Activity Reports in Italy’s gambling sector: A growing AML concern

22 October 2024 / By Diego Ofano

Regulation

DORA Explained: ICT Third-Party Risk Management Strategy (Part 3)

16 October 2024 / By Diego Ofano

Regulation

DORA explained: Role of Compliance Officers in Managing ICT Third-Party Risks (Part 2)

13 August 2024 / By Diego Ofano

Digital & Virtual Assets

ESMA's Opinion on Broker Models Under MiCA: Impact for Crypto-Asset Service Providers

1 August 2024 / By Diego Ofano

Regulation

DORA explained: Principles of Proportionality and Due Diligence process (Part 1)

30 July 2024 / By Diego Ofano

AML & Financial Crime

6th AML/CTF Directive: Challenges and Implications for European Football Clubs

The recent introduction of the AML 6 Directive by the European Union marks a significant step towards combating money laundering and terrorist financing within various industries, including professional football. Football clubs fall under the scope of the AML 6 Directive, which mandates that all clubs must comply with stringent AML regulations unless exempted based on specific risk assessments and financial thresholds. This article analyses the current situation and future developments, examining how the application of the AML 6 Directive affects football clubs of varying sizes and the the implications for financial integrity in the sport.

22 July 2024 / By Diego Ofano

Governance

Third-Party ManCos: Oversight and Independency in Fund Management and future scenarios

In the fund sector, the use of third-party ManCos is increasing, a trend expected to continue in the coming years. Over the past three years, the escalation of costs, regulatory fees, and stringent substance requirements have made more asset managers consider leaving the ManCo business and relying on third-party ManCos. This article examines why relying on third-party ManCos can be a benefit for leader asset managers and fund sector itself, by improving investor protection, introducing an additional layer of oversight and minimize potential conflicts of interest.

25 March 2024 / By Diego Ofano

Digital & Virtual Assets

Between Innovation and Protection: CSSF's Approach to Digital Asset Investments

The Luxembourg Commission de Surveillance du Secteur Financier (CSSF) has released an update on the FAQ Virtual Assets – Undertakings for collective investment in relation to the UCIs investing directly or indirectly in virtual assets and has once again demonstrated its commitment to maintain a balanced and progressive regulatory environment. With its latest guidelines, the CSSF has drawn a clear line between the investment capabilities of Undertakings for Collective Investment in Transferable Securities (UCITS) and Alternative Investment Funds.

7 March 2024 / By Diego Ofano

AML & Financial Crime

Choosing the right AML/KYC Software: Key Considerations and Factors to assess before the adoption of a tool

AML/KYC software tools represent today a pillar of the elements in the fight against financial crimes and the adoption of sophisticated AML/KYC technologies has become indispensable, both for larger and smaller financial institution. This article analyses the aspects to consider when consider the adoption of a AML/KYC software tool, whether to buy or to acquire the rights of use.

29 February 2024 / By Diego Ofano

Funds

Responsable du respect des obligations (RR): considerations on the current framework, weaknesses and potential future changes

Is the role of the Responsable du respect des obligations (RR) truly effective in its day-to-day execution within the existing framework? Should the RR function be assigned to a sole individual or collectively to the Board members? This article analyzes the current structure of the Board on Investment Funds in Luxembourg, understanding how the RR function is currently managed, where the board individually or collectively holds the function of RR, identifies its inherent weaknesses, and explores potential future developments.

7 February 2024 / By Diego Ofano

Regulation

DORA Act: Implications for Luxembourg's Investment Fund Managers on delegation to third-parties

This article analyses the future impact of this regulatory development for Alternative Investment Fund Managers (AIFMs) in Luxembourg and the necessary controls and challenges for AIFMS and compliance officers are likely to face. This regulation requires AIFMs to evaluate and manage the digital operational risks associated with their activities and those of their service providers and delegates.

30 January 2024 / By Diego Ofano

AML & Financial Crime

Dual-Use Items on Investment Funds: What are they? Why are they important and why should you, as MLRO/RC, handle them with care?

In an era where geopolitical tensions are at a peak, with events like the ongoing war in Ukraine, the persistent Israel-Palestine conflict, which has escalated dramatically since the beginning of the October, investment funds with exposure to dual-use items are under the microscope by facing an increasingly scrutinized by national authorities.

4 January 2024 / By Diego Ofano

AML & Financial Crime

The European Anti-Money Laundering Authority (AMLA): Why has it been established and impact on national financial supervisory authorities

"Where will the AMLA office be?" This question has created a lot of interest and discussion about the new European Anti-Money Laundering Authority, while some have speculated it might be in a city like Dublin, others suggested a financial hub such as Frankfurt. Finally, Frankfurt has been chosen to host the EU’s new anti-money laundering authority. However, apart from the excitement about its location, a more fundamental question arises: What exactly is AMLA? Why has it been established? And which is the potential impact on national financial supervisory authorities?

2 January 2024 / By Diego Ofano

Technology

The EU AI Act: Implications for Luxembourg's Investment Fund Managers

The EU's Artificial Intelligence Act, focusing on harmonized rules for AI, might present significant changes for the financial sector operating in European Union. This article analyzes the potential future impact of this regulatory development for Alternative Investment Fund Managers (AIFMs) in Luxembourg and the necessary controls and

28 December 2023 / By Diego Ofano