Luxembourg is long established among the world’s leaders in the twin sectors of fund administration and private banking. It is the world’s second largest centre of investment funds through its pre-eminent role in the European market and as service provider in Asia, the Middle East and South America. It is the largest centre of private banking in the Eurozone.
Its expertise also extends to life insurance and reinsurance, as well as to “captives”. Luxembourg also has developed a favourable environment for private and corporate philanthropy thanks to a competitive tax framework, and the advice and structuring services offered by the banking sector, and the Fondation de Luxembourg.
Decades of experience in the field, a multicultural and multilingual workforce, flexible and sophisticated investment vehicles, a stable political, social and economic environment, and firm but sensitively applied regulations have combined to create a unique and fertile landscape for the financial sector. Laws, drawn up in consultation with the industry, offer solid investor protection and robust action against money laundering.
Thanks to these factors, the country is a centre for corporate finance and the headquarters of many multinational groups. The stock exchange plays an important niche role, specialising in the listing of bonds, with more than 3,500 issuers from 100+ countries. Currently, Islamic finance is under development. And Luxembourg is home to the leading international clearing and settlement house Clearstream.