Deloitte Luxembourg in the 1970s

In the 1970s, Fiduciaire Générale de Luxembourg (FGL) consolidated its professional identity against a backdrop of economic uncertainty and regulatory change.

The decade saw the onset of a profound steel crisis, triggered by the oil shock and structural overcapacity, which unsettled Luxembourg’s long-established industrial model and accelerated economic adjustment.

Against this shifting landscape, FGL focused on strengthening its core disciplines, particularly audit and assurance.

The expansion of audit

A key catalyst was the Law of 6 May 1974, which introduced employee representation in private-sector companies through works councils. For larger enterprises, the legislation required the appointment of an independent external auditor to complement statutory auditors.

Within this new framework, FGL partners and senior professionals were entrusted with a series of prominent mandates. Georges Kioes was appointed independent external auditor for Arbed, MMR-A, Banque Générale du Luxembourg and Monsanto. René Schmitter took on the role at Krediebank Luxembourgeoise, while Edy Schmit would later be appointed to Banque Internationale à Luxembourg.

These appointments reflected the growing recognition of FGL’s technical expertise and professional standing.

Strengthening professional structures

In April 1974, the firm’s nine partners took a further step towards professionalisation with the creation of Société Générale de Révision, established as a société civile. Its purpose was to provide public accounting, audit, tax, business and financial advisory services, excluding all trading activities.

By granting equity participation to qualified experts-comptables previously employed by FGL, the partners ensured that these professionals operated as independent practitioners in legal form, reinforcing ethical safeguards while supporting internal career development. Although later rendered obsolete by the 1999 legislation on the profession of public accounting, the structure was retained to preserve its name and legacy.

The broader economic context remained challenging. Rising energy costs and weakening demand accelerated the contraction of Luxembourg’s steel industry, prompting government intervention through the Law of 26 July 1975 and the creation of the tripartite Comité de Conjoncture to manage the adjustment and limit job losses.

Against this uncertain backdrop, FGL celebrated its 25th anniversary. The firm had grown to a staff of 102, underlining its resilience and continued development. That same year, Edy Schmit was admitted to the partnership, further strengthening the firm’s leadership team.

Joining an international network

Anticipating the growing complexity of professional services, the partners established Compagnie Fiduciaire in 1977 as a separate structure to accommodate potential conflicts of interest between expanding audit and accounting activities.

This period of organisational reflection and preparation also set the stage for a decisive step towards international integration. Following a 12-month trial period beginning in June 1977, FGL agreed in early 1978 to become the Luxembourg member firm of Touche Ross International, then one of the Big Eight accounting networks.

Although another international firm had also expressed interest, the partners concluded that Touche Ross’s federal structure and collaborative philosophy offered the best fit with FGL’s long-term objectives. With its admission, Luxembourg became the 79th country represented within the Touche Ross International network.

The decade closed with a period of transition. In 1979, Ernest Lecuit, a partner since 1963, passed away after a long illness, marking the loss of a key figure in the firm’s development. That same year, Jean Hamilius returned to FGL to assume leadership of the investment fund department, signalling continuity and renewed momentum as the firm prepared to enter a new decade.