ABBL

PwC Luxembourg has released a new publication on Asset management in Luxembourg called “Asset management: Luxembourg, your location of choice”. The document was presented at the alfi Global Distribution Conference on Tuesday 27 September. It analyses the regulation, supervision, taxation and distribution of funds in Luxembourg. It also examines the flexibility of these investment funds within the Grand Duchy which could benefit from the positive effects of the upcoming regulations.

Why Luxembourg?

Luxembourg’s position as a key domicile for internationally distributed funds began in 1988 when the first UCITS Directive was implemented into local law. So far, Luxembourg has enjoyed significant and consistent growth in both assets and fund numbers with a notable surge since the turn of the century reflecting the increasing attractiveness of Luxembourg as a hub for global fund products in both mainstream and alternative asset classes.

“Today, the Asset management world is in the middle of a regulatory storm which challenges the ‘old way’ of production and selling of products”, states Didier Prime, PwC Luxembourg Asset management Leader. “Luxembourg is naturally at the forefront of these changes. It is therefore essential that every market player is committed to maintaining the long term leadership of Luxembourg.”

As the leading service provider in the Luxembourg Asset management industry, PwC Luxembourg is involved in this way by providing its clients and market players with appropriated publications information and services. The brand new publication “Asset management: Luxembourg, your location of choice” has been designed in that spirit.
First of all, the publication presents Luxembourg’s success factors: a combination of the depth and breadth of the supporting infrastructure – service providers and professionals, systems and technology geared towards supporting the diverse and complex vehicles we see in the funds industry today. The stable and business-friendly regulatory and tax environment which effectively supports international fund providers is also a key component of these results.
In addition to this context, this 40 page-publication provides the right information to set-up or develop its business from different perspectives:
 

•     The regulation and supervision of funds,
•     The product and operational flexibility in Luxembourg,
•     Taxation of investment funds,
•     Distribution of investment funds,
•     Listing funds on the Luxembourg Stock exchange.

The global centre of choice

Thanks to the close working relationship between the government and the fund industry, Luxembourg has developed a deep track record of the market tools. This has strengthened the country’s position as the most attractive international fund centre.

A particular situation which allows Luxembourg to consider the regulatory changes as potential benefits rather than threats.

“Despite this complex time for institutions and service providers, for supervisory authorities and investors - at PwC we are confident that the expertise of the fund community in Luxembourg, together with an innovative business-minded environment and the long standing tradition of being a safe fund centre will allow the Grand Duchy to weather the regulatory storm as it did, mostly with the financial crisis”, said Mr Prime.

(Source: PwC Luxembourg)
 

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Asset management: Luxembourg, your location of choice