Last Updated on June 5, 2025 by Arnaud Collignon
Understanding the Law of 15 June 2004
The Law of 15 June 2004 is a significant piece of legislation in Luxembourg that lays down the framework for the regulation of financial markets and the protection of investors. This law is crucial for ensuring transparency and integrity within the financial sector.
Key Objectives of the Law
- Investor Protection: The law aims to safeguard investors by ensuring that they have access to accurate and comprehensive information.
- Market Integrity: It establishes rules to prevent market abuse and promote fair trading practices.
- Transparency: The law mandates disclosure requirements for financial instruments, enhancing the overall transparency of the market.
Important Provisions
Some of the critical provisions of the law include:
- Regulation of financial service providers to ensure compliance with established standards.
- Requirements for prospectuses to provide detailed information about investment products.
- Establishment of penalties for non-compliance to deter market abuse.
Impact on Financial Markets
The implementation of this law has had a profound impact on the financial landscape in Luxembourg, including:
- Increased confidence among investors due to enhanced protection measures.
- Improved market efficiency as a result of stricter regulations.
- Attraction of foreign investment, bolstered by a robust legal framework.
Conclusion
In summary, the Law of 15 June 2004 serves as a cornerstone for the regulation of financial markets in Luxembourg, promoting a secure and transparent environment for investors. Understanding its provisions is essential for anyone involved in the financial sector.
External Links
- Law of 15 June 2004 – CSSF
- Commission de Surveillance du Secteur Financier (CSSF)
- Government of Luxembourg
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