Jad Nader is a counsel in our banking & finance practice. He assists clients on all kinds of financial and regulatory matters including capital markets, securitization, financial products, international credit structures, funds structures, AIFM license requirements, Emir, MiFiD and listing regulations. Jad focuses in particular on sophisticated international financial techniques, where he advises and acts for major international financial institutions and private equity houses.
Jad practiced for several years at major law firms in Luxembourg, Paris and Beirut and has extensive knowledge of the banking industry drawn from his legal practice and his experience within a major European bank in Luxembourg. He was also involved in academic work, where he taught guarantees, mortgages, security interests, property and fiduciary rights, as well as privacy and IT law at the Robert Schuman University.
Jad graduated from the St. Joseph University in Beirut and holds Master degrees in both French and Lebanese Law. He also completed postgraduate degrees in Private International Law (DEA) and in IT Law (DESS) and holds a Ph.D. (Doctorat en droit privé) on the taking of security over financial assets from the Robert Schuman University of Strasbourg.
Jad published various articles on several topics such as: Islamic Finance, The taking of security over financial collateral, Restructuring and Insolvency Law, Cross-Border Lending and participates in the Corporate Law Tools Project of UN Secretary-General on Business and Human Rights.
Jad is fluent in English, French and Arabic.
By way of the Law of 20 July 2018, Luxembourg has finally implemented the EU Payment Services Directive (PSD 2). As the PSD 2 is a full harmonisation directive, most of Luxembourg's PSD 2 provisions are identical to the legal framework implemented across the European Union. Nonetheless, EU member states were given scope to decide on certain topics and the Grand Duchy seized the opportunity to define its own rules.
EU Regulation 655/2014, which established a European Account Preservation Order (EAPO) procedure, aims to facilitate the collection of claims in civil and commercial matters by introducing a uniform EU procedure for identifying and freezing funds held in a debtor's bank accounts in another member state. This increased transparency is a particularly new development for Luxembourg, which recently introduced a straightforward EAPO enforcement procedure that is in line with its existing enforcement measures.
The Luxembourg financial sector regulator (CSSF) recently published a number of circulars in order to streamline its regulation of IT outsourcing in the financial sector and introduce specific rules for the use of cloud services. In doing so, the CSSF has defined the conditions under which financial service providers may outsource activities without infringing the regulatory principles of central administration and sound governance.
EU Regulation 655/2014 recently became fully applicable, making it possible for creditors in Luxembourg to obtain a preservation order for the bank accounts of a debtor situated in another EU member state and vice versa. The regulation introduces a certain degree of transparency at the EU level with regard to debtors' assets, which is greater than that provided under existing Luxembourg law.
There is no specific legal framework regulating virtual currencies in Luxembourg. However, the authorities are fully aware that some tailoring is needed in order to adapt the financial regulatory framework to reflect the challenges of new technologies, especially with regard to virtual currencies. The financial supervisory body, the CSSF, has issued useful guidance in this regard.
Persons exercising key functions in credit institutions are now subject to specific approval by the Luxembourg financial regulator, the Commission de Surveillance du Secteur Financier (CSSF). The CSSF recently published guidelines on the new prudential approval procedure, which applies to directors, authorised managers and persons in charge of internal control functions.
The Single Supervisory Mechanism (SSM) recently became fully operative. Pursuant to the SSM, the European Central Bank becomes the central prudential supervisor of financial institutions in the eurozone (including approximately 6,000 banks), with the possibility to extend the scope of its activity to cover EU member states outside the eurozone which choose to join the SSM.
The proliferation of bitcoin users goes hand in hand with the emergence of operators providing bitcoin-related services – enabling, for instance, the exchange of bitcoins for conventional official currencies. In the absence of EU legislation to curb the risks of bitcoin use, the Luxembourg financial regulator has clarified the way in which it intends to deal with bitcoin-related service operators.
The new Markets in Financial Instruments (MiFID) Act, which transposes the Markets in Financial Instruments Directive and implements the EU Markets in Financial Instruments Regulation, was recently voted into law. Most issues relating to markets in financial instruments are covered by the first part of the act, while the provision of investment services will continue to be governed by the Financial Sector Act, as amended by the second part of the MiFID Act.
The EU Capital Requirements Directive has been transposed into Luxembourg law. The implementing act also amended the laws governing the financial sector, the CSSF (the Luxembourg financial sector regulator) and alternative investment fund managers. Among other things, key definitions have been introduced to pave the way for implementation of the EU supervisory framework for credit institutions and investment firms.
Persons exercising key functions in investment firms are now subject to specific approval by the Luxembourg financial regulator, the Commission de Surveillance du Secteur Financier (CSSF). The CSSF recently published guidelines on the new prudential approval procedure, which applies to directors, authorised managers and persons in charge of internal control functions.
The Bearer Shares Immobilisation Law – which aims to improve the transparency of company ownership and to provide enhanced weapons in the fight against money laundering and financing of terrorism – has now entered into force. Companies that are subject to the law need to appoint a depositary by the deadline or risk facing a substantial fine, as well as having the shares in question cancelled.
After three shareholders representing 99.24% of the share capital of listed company Utopia SA announced their intention to exercise their right of squeeze-out, the remaining minority shareholders commenced judicial proceedings in a bid to block the squeeze-out. The case may open the way for minority shareholders in listed companies to oppose squeeze-outs more frequently.