A European “passport” permits the provision of services on a cross-border basis, with or without the establishment of a physical branch location in other member states of the European Union.

In Luxembourg, credit institutions, payment institutions and electronic money institutions, and PFS belonging to the category of investment firms within the meaning of MIFID II, can be passported. Specialized and support PFS as mentioned above cannot benefit from the passport within the EU single market. Passporting means that in accordance with the required notification procedure of the CSSF, relevant financial service providers can exercise in other EEA member states the specific investment services and ancillary services that are covered by their authorization in Luxembourg.

However, ancillary services only benefit from a European passport if they are provided together with an investment service and/or investment activity. As a general principle, a European passport is only available to firms having their head office established in Luxembourg or another EU jurisdiction and will not be available to branches of Third-Country Firms.

Alternative investment fund managers fully authorized by the CSSF also benefit from a European passport to manage or market alternative investment funds in the European Union.