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The premiere family office to be founded under a new Luxembourg law has opened its doors. Arche Family Office is the first firm authorized under the Grand Duchy’s December 2012 family office act, the company said on Wednesday.

Family offices--which manage financial and administrative matters for wealthy families, and help their clients select legal and tax advisors--have long existed in Luxembourg and other financial centres.

Previously there had been no specific professional licensing requirement. However last year’s legislation brought the family office function under the control of financial regulator CSSF. The government hopes official sanctioning will help make Luxembourg more competitive in the sector.

In 2012 the Grand Duchy had about ten percent marketshare in the segment, according to estimates from consulting firm Deloitte. Ruth Bültmann, a partner at the firm in Luxembourg, told Delano last year that Luxembourg’s track record in private banking and investment management can combine to create a new family office hub. Plus, in her view, all the things that made the Grand Duchy interesting to earlier investors--such as location, language, stability and agility--are just as much of a draw for wealthier clients.

Deloitte created a dedicated family office practice in December 2011.

“The family office activity is establishing itself as an essential link with the private banking sector in Luxembourg,” Frédéric Otto, the firm’s president (photo), said in a statement.

He and his co-founders, Rudy Paulet and Didier Bensadoun, are all former executives of Banque Privée Edmond de Rothschild Europe in Luxembourg.

“The family office sector, from now on regulated” will allow for the specialty to grow in Luxembourg, as it offers clients “perfectly independent advice that avoids all conflicts of interest,” Otto said.