Luxembourg

Gregory Kennedy reflects on cross-border commuting in Luxembourg, where once attractive border towns now face eroding quality of life.

JP Morgan and State Street have reinforced their dominance in Luxembourg’s fund industry, according to the latest Monterey Insights Luxembourg Fund Report 2024.

Banque Havilland, once a discreet player in the European private banking sector, is now caught in a severe regulatory storm. This case has also reignited old tensions related to the 2009 sale of Icelandic bank Kaupthing’s Luxembourg unit to the Rowland family, the financiers behind Banque Havilland.

Cellar Investment Partners is introducing a new investment fund that focuses on the wine market. The fund was registered in Luxembourg last month.

Daisy Mae faces a complex journey launching a railway investment fund in Luxembourg amidst regulatory challenges and tight deadlines.

This week’s overview of transfers, appointments, promotions and other career news includes updates from Scope, EuroCTP, i-Hub and LOD.

This week’s overview of transfers includes updates from LPEA, Generali, the University of Luxembourg, Esma, Euroclear, La Française and DLA Piper.

Luxembourg’s financial sector has felt targeted by the European Commission’s tax policy. Three subsequent anti-tax avoidance directives - known as Atad 1, 2 and 3 – each added more reporting requirements or forced adjustments to tax structures. In July the Commission referred Luxembourg to the Court of Justice of the European Union over how it extended an exemption from interest deductibility limits to EU securitisation entities in implementing the first Atad directive. But Luxembourg feels it has a strong case and seems happy to settle it in court.

Luxembourg is hoping its long, friendly relationship with China can help keep the superpower on a path towards more investment-friendliness instead of sable-rattling with the US. Levels of investment in China by Luxembourg-domiciled investment funds dipped during that country’s difficult Covid times. Some institutional investors are staying away due to darkening US-China relations. Hopes for a resurgence depend on peace.

It was when the Netherlands, Belgium and Luxembourg signed the customs union that a geographical area at the heart of Europe was defined. The aim was to promote economic integration and cooperation between the three member states. 

Since then, Benelux has been one of the most successful regional integration models, both in terms of economic growth and political stability. This success is also rooted in the creation of a solid legal framework that provides a stable and transparent business environment.