Four questions to UK economic secretary John Glen,  pictured at the British Residence in Luxembourg on 3 March 2022 Photo: Maison Moderne

Four questions to UK economic secretary John Glen,  pictured at the British Residence in Luxembourg on 3 March 2022 Photo: Maison Moderne

UK economic secretary John Glen believes both the UK and Luxembourg can develop open and global financial hubs. In a whistle-stop visit to Luxembourg to meet new finance minister Yuriko Backes, he takes ten minutes to talk to Delano about how the UK and Luxembourg can cooperate.

Josephine Shillito: Why are you here today?

John Glen: To meet my counterpart [Luxembourg finance minister Yuriko Backes] but also the Luxembourg regulator [CSSF], the Association of the Luxembourg Fund Industry [ALFI], the stock exchange and a range of financial services. We in the UK believe that the UK and Luxembourg have strong synergies in portfolio delegation and fund management, we have a lot to learn from Luxembourg in how it places green finance at the centre of the finance sector and we want to deepen our relationships with global financial hubs in general.

The UK wants to become a world leader in sustainable finance. How does Luxembourg fit in?

We are developing the sustainable finance agenda in the UK, including a transition to net zero by 2050. In many ways Luxembourg is ahead of the UK, particularly in its green bonds and the Luxembourg Green Exchange [the Luxembourg platform dedicated to green securities] so we have a lot to learn from our friends in Luxembourg.

You have spoken before about slashing red tape in the UK insurance sector. We’re interested, as insurance is central to Luxembourg’s financial industry…

I wouldn’t say slashing red tape, but the UK and the EU always had a very different take on the Solvency II requirements – so I would say we’re fitting Solvency II regulations to a different marketplace. We already have an excellent dialogue with the CSSF and expect that to continue.

How will the UK and Luxembourg continue their cooperation in these changing times?

Luxembourg is a sophisticated jurisdiction, so is London. Two areas on which we want to maintain norms is on risk management and fund management. The key area is that the minister understands that funds based in Luxembourg are managed elsewhere. Luxembourg sees this as a global norm and so do we.  

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