Secteur

Negotiators from the European Council and European Parliament have reached a provisional agreement on new rules aimed at enhancing European capital markets and bolstering investor protection within the EU. The deal, reached during the early hours on Thursday, includes consensus on leverage limits and passporting rules for Loan Originating Funds (LOFs), marking a significant milestone in the regulatory landscape.

Cyprus has emerged as the primary location for firms offering cross-border investment services to retail clients in the European Union and European Economic Area, accounting for 23 percent of the total firms providing passported services. Luxembourg and Germany followed closely, representing 16 percent and 13 percent of all firms, respectively, according to an analysis conducted by European Securities and Markets Authority (Esma) and national competent authorities (NCAs).

The 60-seat Luxembourg parliament has finalised its adoption of a major upgrade of five investment laws, making its popular international framework for investment funds even more attractive for new types of funds coming into the market, in particular Eltifs. The industry has widely welcomed the changes, with one ManCo CEO describing them as “an evolution rather than a revolution.”

Nicolas Mackel, the CEO of the Luxembourg for Finance development agency Luxembourg for Finance and considered as the de facto ambassador of Luxembourg’s financial sector, speaks to Investment Officer’s Raymond Frenken in this IO Talks podcast.

Luxembourg’s parliament, with 55 votes in favour and only two against, has embraced a highly anticipated law that revamps its legislative arsenal for investment funds. Several fund categories, including European Long Term Investment Funds (Eltifs) and money market funds, are to be exempted from the registration tax imposed on Luxembourg-domiciled funds.

Catalysé par les nombreux bouleversements sociaux, technologiques et économiques actuels, le mouvement de consolidation amorcé parmi les gérants d’actifs va s’intensifier au cours des quatre prochaines années, exerçant une « pression existentielle » sur le secteur. Un acteur sur six aura disparu d’ici 2027.

The European Fund and Asset Management Association (Efama) has declared that the European investment fund sector is not capable of undermining financial stability to the extent that it results in systemic risks.

Jean-Marc Goy, recently appointed as chairperson of Alfi, the Association of the Luxembourg Fund Industry, speaks to Investment Officer’s Raymond Frenken about his priorities for the association and about Luxembourg’s role as a leading European and global centre for investment funds.

« Ce partenariat nous offre un nouvel éventail d’options d’investissement. Nous avons également accès à la technologie et aux données de BlackRock. La taille de notre partenaire nous permet de réduire les coûts pour nos clients », explique Ludivine Pilate, CEO de Puilaetco.

With a clear vision in mind, Jean-Marc Goy, chairperson at the Association of the Luxembourg Fund Industry, Alfi, is determined to foster the growth of the Grand Duchy’s asset management sector by encouraging effective collaborations with diverse stakeholders, including regulators. “The common goal is to strike the right balance between investor protection, and not putting in the way of the industry too many hurdles and obstacles that would stifle innovation”, Goy said in an IO Talks podcast interview.