Deloitte Luxembourg in the 1960s

As Luxembourg moved beyond the post-war rebuilding years, the 1960s brought with them a more confident sense of direction. The foundations laid in the previous decades — steady professionalisation, cautious international engagement, and deepening technical expertise — were ready to support bolder steps. The country’s growing appeal to foreign investors and the early stirrings of a collective investment sector created both opportunities and pressures for local advisory firms.

For Gerbes, Kioes & Cie and Hamilius & Schmitter, this period would prove transformative. As Luxembourg opened its doors to foreign businesses, aided by targeted legislation and promotional efforts abroad, the four founders found themselves advising a new wave of international clients. They provided not only accounting and administrative support, but also increasingly complex tax and financial advisory services, services that, by the end of the decade, would demand a new kind of organisational structure.

Early growth and emerging tensions

By 1962 both firms had earned a reputation for dynamism. That same year saw the first listing of an investment fund from France’s Finance Union, on the Luxembourg Stock Exchange. Although collective investment was still in its infancy and not yet governed by dedicated regulation, Gerbes, Kioes & Cie and Hamilius & Schmitter began laying the groundwork for what would soon become a core business line.

At the time, the firms’ roles were distinct: Hamilius & Schmitter handled non-recurring assignments, while Gerbes, Kioes & Cie focused primarily on ongoing client relationships. Their recruitment efforts reflected their ambition, large, visually bold advertisements in local newspapers, announcing opportunities for experienced professionals.

A cohesive identity takes shape

In 1963, the two firms expanded their leadership, bringing in Jean Jemming and Ernest Lecuit as partners. The strategic outlook broadened, with the launch of an office across the border in Arlon, Belgium, in association with Louvain classmate Jacques Planchard, future governor of the Belgian province of Luxembourg. The cross-border practice, while modest in scale, reflected a growing international orientation.

By 1968, the firm counted seven partners — the four founders, Jemming, Lecuit, and the newly appointed Armand Haas. With this growth, it became increasingly clear that operating as two separate firms under distinct trading names was no longer efficient. As their service offerings grew to include public accounting, tax, and organisational consulting, internal questions mounted: How should assignments be coordinated? How could a consistent identity be presented to clients? What would happen in the event of a partner’s departure?

The solution came in April 1968, when the partners agreed to merge the two firms into a single structure: Fiduciaire Générale de Luxembourg (FGL). The new entity consolidated their diverse services under one cohesive name and operational model.

As set out in the firm’s updated corporate objects, FGL would provide a broad suite of services, from public accounting and tax advice to business consultancy, organisational planning, and financial administration; the word “audit” was absent included under the broader umbrella of accountancy.

New name, broader mission

The newly formed FGL wasted no time in making its presence known. In a circular to clients, the firm outlined its expanded capabilities: business and financial planning, personnel management, systems design, secretarial support, portfolio administration, and international tax consulting, including fiscal representation and double taxation advice.

Crucially, 1968 also marked the launch of a specialised fund accounting department, building on the firm’s earlier role as registrar and transfer agent for foreign funds. The move was timely: a new legislative extension of the holding company regime now applied to advisory companies serving investment funds, a catalyst for growth across the sector. At the time, Luxembourg was home to roughly 40 registered funds with assets under management totalling 57.4 billion Luxembourgish Francs (about €1.36 billion).

Within months, the fund services department, led by Lecuit, had grown to a team of 20. To support the increasing volume and complexity of calculations, including the computation of net asset value (NAVs) critical to investment funds, the firm acquired two Ascota accounting machines from East Germany, limited to basic arithmetic, but invaluable, nonetheless.

Caption: The offices at 13, Boulevard de la Foire, in the late 1960s
 

Toward automation and structure

In 1969, FGL took another leap forward with the acquisition of a second-hand IBM 360/20 mainframe, making it one of the first local firms to invest in computerised accounting. The system automated interest accruals — a particular pain point for certain Euro banks — and opened the door to new banking clients such as Deposit and Finance Bank, to which the firm had previously provided incorporation and start-up support.

Internally, 1969 also saw the introduction of a groundbreaking practice: timesheets. These time sheets were colour-coded, with each colour representing a different billing rate. All staff were required to record the time spent on each client assignment in detail. Timesheets were collected daily, sorted, and fed into client ledgers, an innovation in firm management at the time.,

By the end of the 1960s, FGL had successfully transformed itself, from two like-minded but distinct practices, into a unified, forward-thinking advisory firm. With deepening specialisation, expanding international reach, and early investments in automation and structured processes, the firm was well positioned to meet the increasingly complex needs of its clients.