Luxembourg lures financial services companies in response to Brexit vote

MORE THAN 20 top-ranked international institutions chose Luxembourg to set up all or part of their activities as a result of Britain’s decision to leave the European Union, the country’s financial development agency has revealed.

During 2017, five banks, more than a dozen global asset managers and 10 global insurance companies announced plans to move to the duchy or bulk up existing operations, Luxembourg For Finance said in a statement.

Among the companies to do so were AIG, Blackstone, Britannia, Citibank, Hiscox, JP Morgan and Northern Trust, it said.

Luxembourg is one of the European Union’s smallest countries in terms of area and population, but is a major financial centre, especially for investment funds.

Luxembourg for Finance said its asset management sector grew in 2017 by 11.18 per cent to €4.16 trillion (£3.68 trillion).

A total of 139 financial institutions from 28 countries are based in Luxembourg, it added, with a focus on investment management, private banking, and the business and trade finance sectors.

“Luxembourg is expecting further announcements from businesses over the coming months, whether in the insurance, fund management, banking or fintech sectors,” it said.

In December, the Government laid out plans to protect the UK’s asset management industry postBrexit from rival European centres, by attracting overseas firms to locate in the UK and opening financial and economic dialogue with more non-EU countries.