Luxembourg PSF License in 2026: Investment, Specialised and Support
A 2026 deep dive into the Luxembourg Professionals of the Financial Sector (PSF) licence: three categories (investment firm, specialised, support), capital EUR 50k-EUR 730k, CSSF authorisation, substance, and when a PSF is the right structure.
The Luxembourg PSF concept
A Professional of the Financial Sector (PFS or PSF) licence is the cross-cutting authorisation issued by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) under the Law of 5 April 1993 on the financial sector. PSFs are not banks, PIs or EMIs; they are regulated financial professionals whose activities range from investment advice to fund administration, portfolio management, wealth management, IT support services for the financial sector and corporate-domiciliation services.
All natural or legal persons carrying out a professional activity in the Luxembourg financial sector need a CSSF authorisation. The PSF framework is split into three main categories:
Investment firm
MiFID investment activities: investment advice, order reception and transmission, execution, placement, portfolio management, market making, operation of an MTF, underwriting, distribution of UCIs, financial intermediation.
Specialised PSF
Non-MiFID financial activities: family offices, wealth managers for non-financial instruments, domiciliation agents, corporate service providers, registrar agents, debt-recovery professionals, administrative agents.
Support PSF
IT-related services for financial institutions: primary IT system operator, secondary IT system operator, communication infrastructure operator, client-communication agent, data centre operator, dematerialisation operator.
Luxembourg is the EU's largest fund-services and private-banking hub. PSFs are the connective tissue that makes the ecosystem work. Of the 350+ PSFs licensed in 2026, most are specialised or support PSFs; investment-firm PSFs cluster around MiFID-style brokers, fund distributors and wealth managers.
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Request demoCapital requirements by category
| Category | Minimum capital | Notes |
|---|---|---|
| Investment firm (MiFID) | EUR 75,000 to EUR 750,000 | Depending on MiFID services: Class 3 (advisory/reception only) EUR 75k; Class 2 (execution and portfolio management) EUR 150k; Class 1 (market making, proprietary trading) EUR 750k. Identical to Cyprus CIF scale. |
| Specialised PSF | EUR 50,000 to EUR 730,000 | Depends on activity: registrar agents and family officers EUR 50k; corporate-domiciliation and professionals of the financial sector of the insurance industry EUR 125k; investment advisors EUR 125k; MTF/OTF operators higher. Going up to EUR 730k for specific niches. |
| Support PSF | EUR 50,000 to EUR 125,000 | IT service providers: EUR 50k baseline; primary IT systems operator EUR 125k; dematerialisation and conservation operator higher-tier. |
Capital must be paid up in cash in a Luxembourg credit institution in the PSF's name. Ongoing own funds follow the relevant EU framework (IFR for MiFID investment firms, Luxembourg own-funds rules for specialised and support PSFs).
Authorisation process
- Pre-application meeting. CSSF expects a pre-application discussion of business model, category, capital plan, substance and governance.
- Incorporation. Luxembourg SA, Sarl or SCA, with paid-up capital in a Luxembourg bank account.
- File preparation. Articles of association, business plan, governance framework, organisational chart, internal policies (AML, risk, outsourcing, ICT, conflicts, complaints), fit-and-proper files.
- Application submission. Filed to the Minister of Finance via the CSSF. Filing fee varies by category: typically EUR 10,000 to EUR 30,000.
- CSSF assessment. Typical 6 to 9 months for straightforward files, up to 12 months for complex structures or multi-category applications.
- Ministerial decision. Issued on CSSF recommendation. Authorisation published in the Official Journal.
Substance: the Luxembourg bar
CSSF substance expectations are among the highest in the EU.
- Local executive management. Day-to-day management must be entrusted to at least two natural persons with professional standing, closely equal powers and residence in Luxembourg or the Grande Region (Belgium, France, Germany border zone). Remote-only management is rejected.
- Board. Collective suitability on banking, finance, risk, compliance and technology; local Luxembourg presence expected for a majority of directors.
- Real office. Physical premises in Luxembourg, CSSF site visits, local payroll.
- Three lines of defence. Local compliance, risk and internal audit; outsourcing allowed but with full CSSF oversight.
- Remuneration. Investment-firm PSFs apply IFR/IFD remuneration rules; specialised and support PSFs apply proportionate local standards.
When a PSF is (and is not) the right structure
Picking the PSF category or rejecting the route entirely is the first architectural decision.
- Yes PSF investment firm. If you offer MiFID investment services to Luxembourg or EU clients without deposit-taking, a PSF investment firm is cleaner than an EU full bank and cheaper than a UCITS ManCo.
- Yes specialised PSF. Family offices, domiciliation, wealth management for specific asset types, registrar and administrative agents for funds.
- Yes support PSF. Fintech and SaaS firms that provide IT services to Luxembourg banks, funds or PSFs. A support PSF licence is often required by Luxembourg clients for outsourced IT services.
- No, pick AIFM or UCITS ManCo. If you manage alternative or UCITS funds, pick the fund-manager licence instead.
- No, pick EMI or PI. If you provide payment services or issue e-money, pick the Luxembourg EMI or PI licence instead.
- No, pick MiCA CASP. For crypto services, MiCA is the right licence; most Luxembourg CASPs are granted directly by CSSF under MiCA, not as PSFs.
Ship a Luxembourg-regulated financial product with Crassula
Crassula integrates with Luxembourg banks and fund-administration providers to deliver the operational core: client onboarding, portfolio management, KYC and AML, reporting, DORA-aligned ICT, client reporting and CSSF-ready audit trails. We are comfortable with investment-firm, specialised PSF and support PSF use cases.
FAQ
A Professional of the Financial Sector, a CSSF-authorised financial professional that is not a bank, PI or EMI. Three categories: investment firm (MiFID), specialised PSF and support PSF.
Investment firm PSFs EUR 75k to EUR 750k depending on MiFID services. Specialised PSFs EUR 50k to EUR 730k depending on activity. Support PSFs EUR 50k to EUR 125k depending on IT service tier.
6 to 9 months for a straightforward file; up to 12 months for complex or multi-category applications. Pre-application discussion with CSSF is effectively mandatory.
Day-to-day management must be entrusted to at least two natural persons resident in Luxembourg or the Grande Region, with real office, local payroll, and local three-lines-of-defence. Nominee structures are refused.
No. For crypto-asset service providers, MiCA is the correct licence. CSSF authorises CASPs directly under MiCA. A PSF is still relevant for traditional-finance firms that want a Luxembourg home.
Crassula provides the operational core - onboarding, client management, portfolio, reporting and DORA-aligned ICT - for investment-firm, specialised and support PSFs.
