Investment Officer Luxembourg

EU’s controversial financial market trading rules overhaul sparks dissatisfaction among stakeholders, following fractious trilogue negotiations. The agreement claims to enhance global competitiveness and simplify investing through improved market data access.

Pierre Gramegna, former Luxembourg finance minister and managing director of the European Stability Mechanism, on Tuesday called for bolder steps towards creating better integrated financial markets in Europe. Reviving the EU’s ambition for creating a true Capital Markets Union is essential, he said, if Europe wants to broaden access to finance for businesses and achieve its sustainability ambitions.

The European Central Bank (ECB) may not openly acknowledge it, but behind the scenes, goodwill is slipping away. Goodwill represents the intangible, invisible value of a company. When applied to a central bank, it refers to the willingness to make unpopular decisions in the short term, such as raising interest rates when inflation skyrockets. Since 2021, the ECB has squandered much of its goodwill, but during June, it has managed to regain a fraction of it.

ShareAction, a UK-based international charity advocating for responsible investment, on Monday launched a new definition of “responsible investment” with the aim of raising standards across the financial sector while combating greenwashing and misleading claims.

Global managed assets decreased by four percent to $255 trillion in 2022, marking the first decline in fifteen years, according to the new Global Wealth report by Boston Consulting Group (BCG). However, global savings increased by over 6 percent during the same period.

Luxembourg’s financial sector has faced a wave of tax avoidance legislation in recent years. But the impact of the earlier measures is likely to pale in comparison to the EU’s latest – the third Anti-Tax Avoidance Directive, known as the “Unshell directive”. Luxembourg tax specialists are anxious about its potential impact on the widespread use of shell companies, often known as ‘special purpose vehicles’, in Luxembourg company structures. 

The association representing Luxembourg’s banking industry has claimed success in its lobbying effort to persuade the EU to amend the rules governing the prudential requirements and the supervision of third-country branches to its satisfaction. The association said Thursday that a series of subsequent amendments preserve the attractiveness of the EU as a financial centre towards the rest of the world.

Private investors do not know what rising interest rates do to their investments. Despite this, they said they achieved solid returns even when blood ran through the streets.