UK-EU MoU could end mutual lack of trust, rebuild bridges
A Memorandum of Understanding on financial services agreed between the EU and the UK, published on 19 May, could elevate the tone of the discussions and lead to a more productive relationship. “It’s a very encouraging confirmation that the relations between the EU and the UK are warming up,” said Nicolas Mackel, the CEO of Luxembourg for Finance, the public-private Luxembourg agency for the development of the financial sector.
Concerns arise over short-term vision of Anglo-Saxon managers
European investors, mostly hailing from the Netherlands, find themselves increasingly exasperated as several Anglo-Saxon asset managers prioritise financial returns over the critical energy transition within oil and gas companies. This growing trend became starkly evident during recent shareholder meetings held by energy giants BP in late April and Shell in late May.
Confidence in Luxembourg’s crypto sector undimmed
A year of negative crypto-asset industry headlines has left interest in the asset class undiminished, according to a survey of 127 industry practitioners released on Thursday. Respondents agreed crypto assets will be important for the future of Luxembourg’s asset management industry. Local crypto actors attribute crypto-asset failures elsewhere to poor governance and due diligence failures but, all the same, are happy to see increased regulatory activity in this area.
‘Institutional portfolios can do with more venture capital’
Institutional investment portfolios in Europe could do with more venture capital, especially when it comes to making green impact investments, the Netherlands’ technology investment envoy Constantijn van Oranje-Nassau said in an IO Talks podcast interview. Van Oranje, who leads Amsterdam-based Techleap, a Dutch government sponsored tech investment initiative, spoke about the global business climate for technology investments, the effects of rising interest rates on tech investments, dilemmas around artificial intelligence, and the new Nato Investment Fund, which is being structured via Luxembourg.
Anti-ESG policy seen as reason to underweight the US
While those European investors still in doubt about the importance of ESG are becoming increasingly bogged down in a rearguard action, U.S. states are increasingly passing anti-ESG laws. “If this becomes federal policy, I would underweight the U.S. in the portfolio,” said Gaya Herrington, a sustainability researcher and advisor to the Club of Rome.
‘Value for money’ replaces full kickback ban in EU retail plan
Fund firms face the prospect of EU rules setting standards of “value for money” for their investment products under the Retail Investment Strategy due to be unveiled on 24 May. This could include disincentives, for example, to charging active management fees for an investment that underperforms an index fund. For all the discussion of a ban on inducements for investment advice, the commission has decided to propose a more limited inducement ban on execution-only investments.
City of London aims for fresh ties with Luxembourg
The top representative of the City of London Corporation on Tuesday began a two-day visit to Luxembourg that includes meetings with Luxembourg for Finance, financial regulator CSSF, the finance ministry and representatives of the grand duchy’s banking sector.
EU Court of Auditors notes ECB failings in bank supervision
The European Court of Auditors, the EU’s top body designed to improve financial management in the European Union, has criticised the European Central Bank for failing to properly supervise the 110 largest financial institutions in the Eurozone.
EC’s clearing autonomy move raises hackles
A recent European Commission proposal to oblige EU-based eligible counterparties to hold an active account at an EU central counterparty clearing house has raised temperatures in some quarters in Luxembourg.
Wrangling over US debt ceiling may soon be over
The US debt ceiling seems to be an endless source of political wrangling, with parties blaming each other and threatening economic chaos. One would almost forget that debt repayment is not up for debate. Not even in the US.
“President Biden is driving America towards its first-ever default, and no one but him will be blamed,” shouts a television ad from the Republican advocacy organisation American Action Network.