Luxembourg has once again ranked among the top three EU financial centres in 2018, having consolidated and strengthened its role as the go-to hub for financial institutions operating on a cross-border basis in the European market.
Last year, Luxembourg’s regulators granted 80 new licences for banks, management companies, alternative asset managers, insurers and investment firms. This number includes several financial institutions to have publicly announced their decision to relocate some activities because of Brexit.
To date, the Brexit relocation plans of 48 financial institutions involving Luxembourg have been made public. Half of these are asset managers and the other half are a mix of banks, insurers and payment service providers. Meanwhile, a number of firms have chosen to expand their existing Luxembourg operations without these plans having been made public.
An important factor in Luxembourg’s ability to continue to attract new business is its long-term stability, underpinned by its consistent AAA credit rating.
Nicolas Mackel, CEO of Luxembourg for Finance, said:
“Luxembourg’s proposition to the global financial sector is stronger than ever. We are known as a cross border focused centre and this status has only been underscored by Brexit. Our offer is also constantly evolving to meet the future needs of finance, which means continuing to curate a modern, ambitious and outward looking financial centre, that provides clear development plans and practical support. The progress we have made over the last year in sustainable finance, digitalisation, and in deepening relationships with global brands and major economies like China is testament to that approach.”