Laws and Regulations

The European Union is preparing its next wave of financial sector reforms, and 2025 could mark a turning point.

ESG factors are playing an increasingly diminished role in the investment decisions of institutional parties. For the vast majority, short-term performance takes precedence over the long-term benefits of sustainable investing.

Although no progress has been made this year towards a European Capital Markets Union, William De Vijlder, former Chief Economist at BNP Paribas, remains cautiously optimistic about building a stronger financial Europe. According to him, four groundbreaking reports from the past year point the way forward.

Donald Trump’s re-election has derailed the proposed stricter Basel III regulations for banks, threatening their implementation for both U.S. and European institutions.

The regulatory divide for crypto investors between the US and Europe is set to widen further.

Luxembourg financial regulator the CSSF has started identifying pilot projects to explore artificial intelligence applications based on a new Luxembourg-based cloud computing platform incorporating Google services. The move is seen in part as a way to cope with a long-standing difficulty in recruiting sufficient qualified staff.

International law firms Herbert Smith Freehills and Simpson Thacher & Bartlett have announced plans to establish offices in Luxembourg, aiming to strengthen their presence in the private capital sector.

The chair of the European Securities and Markets Authority (Esma), Verena Ross, still believes that a ‘basic and simple’ investment product could help convince more European savers to start investing.

Efama chief Tanguy van de Werve highlights the urgent need for tax harmonisation to overcome fragmentation and create a competitive, unified European market.

Luxembourg should take a page from Ireland’s playbook and deepen its relationship with the United States. The European Union is gradually eroding the regulatory flexibility and pragmatism that once enabled Luxembourg to attract international investors and dominate the fund industry.