The Luxembourg district court has ordered the dissolution and judicial liquidation of the investment firm Fuchs & Associés Finance S.A. The firm’s separately run management company, Fuchs Asset Management, said its operations would continue uninterrupted and it would proceed with a buyout plan. The court decision was on Tuesday 18 July 2023 by Luxembourg’s financial sector regulator, the Luxembourg Financial Sector Supervisory Commission (CSSF).
The court has appointed Alain Rukavina, an attorney at law, as the liquidator, while Maria Faria Alves, the vice president of the Tribunal d’arrondissement de et à Luxembourg (Luxembourg district court), has been designated as the official receiver.
The deadline for the submission of claims by eligible parties is 19 January 2024.
In a , the CSSF has disclosed that the judicial liquidation triggers the activation of the Luxembourg , known as SIIL.
The SIIL operates to reimburse claims arising from Fuchs & Associés Finance’s incapacity to repay money owed or return financial instruments to eligible clients held on their behalf in connection with investment business. The scheme provides compensation of up to €20,000.
Eligible clients who have been unable to retrieve their financial instruments or establish claims related to investment business through the institution’s accounting records or duly certified by the liquidator are urged to contact the SIIL via email at [email protected] or by postal mail.
The SIIL will provide the necessary documents outlining the conditions and procedures for potential compensation.
Clients are granted a ten-year window from 18 July 2023 to submit their claims.
The CSSF further clarified that, as a result of a decision made on 7 July 2023, Fuchs & Associés Finance’s authorisation has been withdrawn, effective as of 15 July 2023.
The CSSF took this measure due to serious breaches of essential legal and regulatory requirements, specifically concerning the capital base, prudential ratios and the management body (board of directors and authorised management) of Fuchs & Associés Finance.
The regulator emphasised that these breaches gravely compromised the legal obligations pertaining to sound and prudent management.
The decision to withdraw the authorisation remains subject to potential administrative appeals.
When phoned by Delano, Fuchs & Associés Finance declined to comment. Its website was not functioning when accessed on Wednesday morning.
The group’s separately run management company, Fuchs Asset Management, in a press release that “the license withdrawal of Fuchs & Associés Finance S.A.... has no impact on its daily operations” and it would continue with existing buyout plans.
The business stated on 18 July: “Fuchs Asset Management’s ongoing buyout process, in conjunction with external partners, continues to move forward steadily. This initiative is integral in establishing its long-term success and the continuity of its services. The buyout process is progressing according to plan and Fuchs Asset Management will maintain its efforts to ensure a successful conclusion as soon as possible. In this context, Fuchs Asset Management reaffirms its commitment to maintaining stability, continuity, and uninterrupted service for our clients.”