Raymond Frenken

Artificial intelligence (AI) is reshaping the financial landscape with promises of efficiency, innovation, and superior decision-making capabilities. However, as the European Securities and Markets Authority (Esma) warned this week, the integration of AI in investment services comes with significant risks. Like a double-edged sword, AI’s greatest strengths can become its most dangerous liabilities if not handled with care.

ING Luxembourg has decided to eject thousands of mass retail clients in the grand duchy as part of a strategic transformation in which it plans to boost its focus on more profitable private banking services.

The European Securities and Markets Authority (Esma) unveiled a new initiative this week aimed at making investment opportunities more accessible across the EU. At the heart of this plan is a new “basic and simple” EU investment product label, intended to simplify and streamline choices for retail investors.

A plan that could provide cross-border investors in the European Union with annual gains worth more than eight billion euro has moved a step closer to becoming reality in 2030.

Even though growth is falling short of high expectations, the European market for Long-Term Investment Funds (Eltifs) is poised for significant expansion, with Berlin-based research and ratings firm Scope projecting a potential tripling in volume to 30-35 billion euro by 2026 from 13.6 billion euro in 2023.

LGIM has launched its first Luxembourg-domiciled fund, aimed at international institutional investors, to expand its private markets strategy. It’s called ‘Staff’, or short term alternative finance fund. LGIM’s head of private credit Nick Bamber spoke to Investment Officer.

The UK’s new Overseas Fund Regime (OFR) plans to integrate strict sustainability reporting for foreign investment funds by 2025, enhancing market access while maintaining a competitive investment landscape post-Brexit.

Ireland has marked a significant milestone by registering its first three European Long-Term Investment Funds (Eltifs) under the revamped European framework, the Dublin-based national financial supervisor has told Investment Officer Luxembourg.

One hundred years following the establishment of the inaugural open-ended equity fund, modern actively managed mutual funds appear to grapple with an ambiguous future.

Less than a week before announcing the sale of its asset management services arm, Luxembourg’s troubled investment firm Fuchs & Associés Finance - still in liquidation - was fined €785,000 by the Grand Duchy’s financial supervisor CSSF under laws on the fight against money laundering and terrorist financing.