Asset Servicing

Despite the looming EU deadline on ESG reporting, around a third of boards of UCITS funds and nearly half for alternative funds report had not reviewed the implications of the sustainable finance disclosure regulation (SFDR).

The London-based foreign exchange specialist Monex has opened an office in Luxembourg to serve its EU-based clients after the Brexit transition period ends on 31 December.

The presence in Luxembourg will enable Monex to continue to provide foreign exchange and international payment services to customers based in Europe without any disruptions, said Monex Europe CEO Nick Edgeley.

The creation of a single European electronic payments market is possible, but may be five to ten years away. This was a broad conclusion of the Focus On Payments discussion organised by Luxembourg for Finance on 10 September. What barriers need to be overcome?

The investment industry’s high expectations of robo advice and the use of blockchain technology have not yet been met. For now, robo advisers have failed to make a decisive breakthrough, according to research by the CFA Institute among more than 250 of its member organisations.

A substantial majority of these appear yet not to use big data analysis, machine learning or artificial intelligence in risk management, compliance or the investment process.

Fund distribution platform Allfunds recently launched a separate B2B platform for mandate solutions in Luxembourg. The new service aims to become the leading B2B sub-advisory platform in Europe and bring fiduciary knowledge to the wholesale sector. 

State Street Luxembourg seems to have ridden out the first wave of the coronavirus crisis. Yet what of the return to work and a potential secondary shock? We asked Eduardo Gramuglia Pallavicino, State Street Luxembourg’s country head.

‘It all worked quite well. The regulators were quite pragmatic, simplifying some of the processes and allowing workload to be balanced across locations,’ Mr Gramuglia Pallavicino said confidently. ‘These changes were necessary, as in March transaction volumes were double the norm.’

Annual general meetings moving online is an example of how the coronavirus could change the way businesses function. The Institut Luxembourgeois des Administrateurs (ILA), the country’s director’s association, saw a 20% increase in participation after moving their AGM online.

Investment data and research provider Morningstar is acquiring full ownership of Sustainalytics, the ESG ratings agency. Morningstar already owned a 40%-stake in the company.

Stéphane Corsaletti is the new Chief Investment Officer of fund distribution platform Allfunds. The Frenchman will lead Allfunds’ recently formed digital investment solutions platform from its Luxembourg office.

Corsaletti will be part of the executive committee, reporting directly to CEO Juan Alcaraz. Launched in 2000, Allfunds is one of the world’s largest fund distributors. It offers clients access to a universe of over 125,000 funds through Allfunds Connect.

Airbnb will move the processing of all EU payments from the UK to Luxembourg as of 2020 because of Brexit.

The home rental platform opened a subsidiary in Luxembourg at the end of last year and was granted a payment institution license in the country last month.