Professionals of the Financial Sector (PSF) in Luxembourg - Overview and outlook of a resilient sector | Brochure
This 2013 issue, which also features interviews and articles on current trends and matters, provides an overview of PSF. It confirms the industry’s importance in the Luxembourg economy and illustrates the various existing categories and their developments.
This year, for the first time since they were established, the number of PSF decreased, although the drop did not affect all PSF statuses. The number of licences held is stable.
Yet the situation is far from alarming - the PSF industry is still going strong and activity has increased over the past year. Balance sheets post an overall rise of 9%, with profits up by 3%. Between licences earned and withdrawn, company establishments, mergers and liquidations, the PSF sector remains dynamic. Hence the title of this brochure: ‘Overview and outlook of a resilient sector’. Resilience indeed reflects the ability of PSF to adapt to a changing environment and to get back on track to growth after tackling the crisis head-on.
This year has also been one of abundant regulatory changes, impacting each PSF category. Circular 12/552 redefines the principle of governance and risk management for investment firms. For the very first time, support PSF were required to implement Circular 12/544, which defines the ‘risk-based approach’ concept and aims at improving the quality of service providers supporting the Luxembourg financial sector. The diligence expected of the registered company auditor in respect of the application of this circular is still to be defined.
The creation of new statuses confirms the lawmaker’s interest in this sector whose horizons are broadening. First, Article 26-1: ‘Professional custodians of assets other than financial instruments’ allows PSF to be custodians of AIFM funds and thus creates a new source of revenue for the industry. Second, the Family Office status aims at establishing a specific label. We can also mention the progress made in the creation of another status under the law on electronic archives which will be a new driver of growth for support PSF.
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