More than five dozen financial outfits have decided to set up post-Brexit hubs in Luxembourg.
According to a retrospective of 2019 by Luxembourg for Finance, a state-backed promotion agency, released this week:
“While some 60 financial companies have publicly announced the relocation of activities to Luxembourg due to Brexit, the actual number is over 70, including those that have not yet publicly announced their relocation decision.”
That included moves within the insurance sector. LFF stated:
“Driven by the ongoing relocations of insurance firms in the context of Brexit, in the first three quarters of 2019 Luxembourg’s non-life insurance sector experienced a growth in premiums of over 200%, and overall insurance sector growth of around 50%.”
All told, “Luxembourg’s two financial services regulators have issued 119 new licences in 2019.”
Here are some of the other numbers highlighted by Luxembourg for Finance. In the sustainable finance space:
“A third of all green bond listings worldwide were listed on the Luxembourg Green Exchange (LGX) in 2019, adding €72 billion in new listings.”
“The number of investment products labelled by the Luxembourg Finance Labelling Agency (LuxFLAG) grew by 78% last year, reaching 183 labelled investment products across 7 jurisdictions, representing €72.5 billion in assets under management. These labelled products are managed out of 14 countries, underpinned by the importance of highlighting a fund’s ESG credentials internationally.”
In the payments sector:
“In total, 12 payment and 9 e-money institutions have now chosen Luxembourg as their hub to serve the EU market,” including Airbnb, which received authorisation “to process all EU payments in Luxembourg” late last year.
In the investment fund industry:
“Assets under management (AuM) in Luxembourg domiciled funds now total €4.7 trillion ($5.2 trillion), strengthening Luxembourg’s position as the top fund centre in Europe and second globally to the US. Over 500 fund promoters have set up around 3,800 funds in Luxembourg, which are being sold in 73 jurisdictions around the world, making Luxembourg funds the most widely accepted investment vehicle. 98 of the 100 largest European asset managers have Luxembourg-based funds.”
“2019 saw a 10% growth in new investment firm licences granted”.