On 14 April, the Commission de surveillance du secteur financier (CSSF) imposed a fine of €108,900 on the credit institution Natixis Wealth Management Luxembourg pursuant to the provisions of Article 51(2) of the amended law of 12 July 2013 on alternative investment fund managers (“AIFM law”).

The CSSF posted a notice of the fine on its website on 27 May.

“This administrative fine is the result of an on-site inspection carried out by the CSSF in 2020 during which severe infringements to the provisions applicable to the depositary function of the AIFM Law were found,” the CSSF said. “The deficiencies relate to the safekeeping obligations of other assets, the oversight duties, the cash flow monitoring, as well as the sound and prudent management of the depositary activities.”

A spokesperson said that the firm took note of the sanction and specified that “as part of its 2021-2024 medium-term plan, Natixis Wealth Management has decided to end this non-strategic depository activity, which has been managed in wind-up mode since September 2021”.

This fine is not a first for Natixis Wealth Management Luxembourg. The institution was fined €1.85m by the European Central Bank in December 2019 for “non-compliance with reporting obligations regarding limits and large exposures in 2016 and 2017”.

In recent months, the CSSF has imposed penalties on other big names in the financial centre such as €3.755m against Spuerkess €3.755m for failure to calculate risks and €1.32m against Banque de Luxembourg for “weakness” in compliance with anti-money laundering legislation.

This story was first published in French on . It has been translated and edited for Delano.