Family governance: the next chapter of Luxembourg’s wealth management ecosystem

Wealth management is evolving. As entrepreneurial families face increasingly complex challenges around succession, governance and the next generation, Luxembourg has an opportunity to broaden its value proposition beyond traditional private banking. This was one of the key messages shared by the ABBL during a panel discussion at the LIEFO General Assembly, highlighting how the Association is helping shape a more collaborative ecosystem centred on families as much as on finance.

From managing assets to supporting families

For decades, Luxembourg has built an international reputation for excellence in private banking, cross-border wealth structuring and international financial services.

But the expectations of entrepreneurial families are changing.

Financial performance and asset structuring remain essential, yet families are increasingly seeking support on broader questions: intergenerational succession, governance, entrepreneurship, family cohesion, philanthropy and preparing the next generation of decision-makers.

As Hélène Lange, Head of Business Coordination at the ABBL, explained during the discussion, this represents a profound shift in the way wealth management is approached.

This evolution has also influenced the ABBL’s own work.

While its Private Banking & Wealth Management Cluster has traditionally focused on financial institutions, the Association has progressively broadened its ecosystem to include investment firms, legal advisers, consultants and governance specialists.

More importantly, it has recognised that entrepreneurs and families themselves must become part of the conversation.

Rather than designing solutions for families, the objective is now to develop them with families, ensuring that future initiatives genuinely reflect their long-term needs.

Building a broader ecosystem around family governance

This evolution naturally places family governance at the centre of the discussion.

While Luxembourg already enjoys international recognition for its expertise in wealth management, the opportunity now is to create an ecosystem capable of supporting entrepreneurial families throughout every stage of their journey.

Family governance goes far beyond financial planning.

It encompasses decision-making, succession planning, entrepreneurial continuity, family cohesion, philanthropy and the engagement of future generations.

For the ABBL, this requires close collaboration between banks, investment firms, family offices, lawyers, governance specialists, universities and public authorities.

Developing tomorrow’s skills also forms part of this ambition.

Initiatives such as the ABBL Wealth Management Masterclass, developed together with the University of Luxembourg, reflect the Association’s commitment to preparing professionals for a rapidly evolving wealth management landscape. At the same time, regular dialogue with the Ministry of Finance contributes to broader reflections on strengthening Luxembourg’s attractiveness for entrepreneurial families, both domestic and international.

To further support this ambition, the ABBL has established dedicated Family Governance and NextGen working groups, bringing together experts from across the ecosystem to identify practical initiatives that can reinforce Luxembourg’s position as a leading international centre for wealth management.

Creating value through collaboration

During the discussion, Olivier Gérard, member of the ABBL Private Banking & Wealth Management Cluster, emphasised that private banks remain central partners for entrepreneurial families.

Their expertise in wealth preservation, investment management and succession planning continues to be fundamental.

However, families increasingly expect support that extends beyond financial solutions alone.

Questions relating to governance, family dynamics, entrepreneurship, philanthropy and preparing future generations require expertise from a much broader network of professionals.

Rather than replacing the traditional role of private banks, this multidisciplinary approach strengthens it by combining financial advice with complementary expertise from Single Family Offices, Multi Family Offices, governance specialists, legal advisers, entrepreneurs and philanthropic experts.

This collaborative model allows families to benefit from more holistic and sustainable solutions tailored to their long-term objectives.

From reflection to concrete recommendations

The ABBL’s work on family governance is already moving beyond discussion.

Drawing on extensive consultation with industry experts and entrepreneurial families, the Association has identified five priority areas that structure its ongoing work:

• protecting families, assets and long-term continuity;
• facilitating cross-border mobility and portability;
• integrating investment, entrepreneurship and philanthropy within a coherent strategy;
• strengthening family governance and decision-making frameworks;
• supporting successful intergenerational succession.

The Association has also reviewed Luxembourg’s existing legal and financial toolbox and benchmarked leading international financial centres to identify best practices that could further strengthen the country’s attractiveness.

This work will culminate in a series of recommendations to be presented to the Haut Comité de la Place Financière, covering targeted regulatory improvements, greater use of existing instruments and new initiatives designed to position Luxembourg as a leading jurisdiction for family governance.