Discover Benelux |  Business |  Luxembourg for Finance

LUXEMBOURG:

An international financial centre in the heart of Europe The Luxembourg financial centre is known as a centre of excellence far beyond the borders of the Benelux countries. Due to its specialisation in the distribution of cross-border financial services, Luxembourg managed to create a sustainable and diversified international financial centre. TEXT: LUXEMBOURG FOR FINANCE |  MAIN PHOTO: LFF

From  its  origins  as  a  Eurobond  centre  in the 1960s, the country subsequently developed  as  a  private  banking  centre  and then, since the 1980s, as a leading domicile  for  investment  funds.  Moreover,  the Luxembourg  Stock  Exchange  is  globally recognised for its capacity to innovate and its  efficiency,  and  is  the  listing  place  of choice in Europe for international bonds.

the financial centre with a comprehensive toolbox of compliant investment vehicles to meet their clients’ needs. This legal framework, combined with Luxembourg’s openness  to  the  world  and  strategic  location, has  attracted  international  banks,  insurance  companies,  investment  fund  promoters and specialist service providers.

Over the past decades, many new activities were  developed  to  further  diversify  the  financial sector. Due to its innovative spirit, Luxembourg has always been open to new trends and today counts amongst the top financial centres worldwide when it comes to activities such as the international Renminbi (Chinese yuan) business, Islamic finance or e-payment services, amongst others. 

Luxembourg  reduces  cross-border  complexity and is the ideal platform to access the  different  national  markets  in  Europe. The financial centre has specialised in serving  international  clients  with  businesses and  investments  in  several  jurisdictions. Professionals in Luxembourg have the advantage of being multi-lingual, multicultural and familiar with international business, tax and regulatory environments.

The  success  of  the  financial  centre  is founded on the social and political stability of the Grand Duchy and on a modern legal and regulatory framework that is continuously updated, providing professionals in

Luxembourg’s  commitment  to  a  sustainable financial economy, not only on a national, but also on a European and international level, is reflected in the government’s strong commitment to transparency in fis-

78 |  Issue 12 |  December 2014

cal matters. Luxembourg is an active and positive player in the discussions at OCDE and  EU  level,  which  aim  at  achieving greater fairness in international tax matters. Photo: Luxembourg ONT

Today the Luxembourg financial centre is: Number 1 financial centre in the Eurozone, ahead of Frankfurt, and number 15 in the world (GFCI index – September 2014). The second largest investment fund centre in the world. The premier wealth management centre for international clients in the Eurozone. The premier centre for cross-border distribution of life assurance in the EU. The largest domicile for Islamic funds in Europe. The third largest global centre for international Renminbi activities.