our vision · 2019. 8. 13. · standard setters and represent the interests of the associations’...
TRANSCRIPT
The Luxembourg Banking and Investment Funds associations are committed to financial stability, the financing of the economy and citizens’ savings as well as a sustainable future for the planet and its inhabitants.
A robust financial sector for a safe future
Luxembourg banks are very well capitalized. Providing safety and financing for their
clients in Luxembourg and across the EU is part of their DNA. In addition they are
important liquidity providers for the rest of their respective banking groups in other
Member States. In order to preserve the diversity of the European banking landscape
and thereby financial stability, the ABBL supports more proportionality in legislation
applying to small and medium sized banks.
The Luxembourg financial centre is making Europe more competitive, as one of the
global leaders in cross-border distribution of funds and EU headquarters of major banks
from across the world. Luxembourg is committed to promoting European integration
and the EU’s product brands. ALFI is therefore calling for more stability in European
legislation in order to preserve well-recognised brands such as UCITS and AIFMs, and
innovation in order to develop new brands.
A pioneer in sustainable finance
Awareness of environmental, social and governance issues is increasing in the minds
of citizens and policymakers alike. ABBL and ALFI are significantly contributing to
global efforts via the innovative products and services of their respective members.
ALFI has been at the forefront of actively promoting and pioneering sustainable
finance opportunities for asset managers since 2006. ‘Responsible Investing’
including sustainable finance has been ever since a growing pillar of the Luxembourg
investment fund industry. 32% of European Responsible Investing Fund market
2019 are domiciled in Luxembourg (KPMG, European Responsible Investing Fund
market 2019).
LuxFLAG has been an early leader in guaranteeing transparency and ‘truth in labelling’.
After rigorous evaluations the agency has granted 136 labels as of July 2019.
The ABBL endoresed the UNEP FI principles for responsible banking in 2019.
Furthermore since 2018 Luxembourg legislation has been providing renewable covered
bonds standards. The first products are in the making. It is also worth highlighting that
the Luxembourg stock exchange, has created the first green bond exchange in Europe
and over 250 green bonds are listed on its markets as of July 2019.
Helping citizens and companies to prepare for the future
The Luxembourg fund industry is helping citizens access investment opportunities and
savings products which help them to save for their projects and pension. ALFI is therefore
committed to fostering the new European pension products such as the PEPP.
Luxembourg banks and investment funds are supporting European businesses to
grow through bank-based and market based financing.
ABBL and ALFI are committed to promoting strong investor protection standards and
dedicate time and resources to financial education. Selected initiatives include the
ABBL’s money week and ALFI’s “Understanding investment” website.
OUR VISIONThe ABBL and ALFI joint EU Representatives Office in Brussels represents both associations towards the European Union. The office was set up in 2006. Both associations have joined the Transparency Register in the year of its creation in 2008.
Antoine and Aurélie, together with the respective ABBL and ALFI teams, interact with policymakers and standard setters and represent the interests of the associations’ members in Brussels.
Contact Details:
ABBL and ALFI EU Representative Office
Avenue de Cortenbergh 168
1000 Brussels
Belgium
Antoine KremerHead of ABBL and ALFI EU Representative Office
+32 47 03 01 415 [email protected]
Aurélie Cassou Senior Advisor in European Affairs
+32 49 51 66 [email protected]
Established in 1939, the Luxembourg Bankers’ Association (ABBL) is the oldest
and largest professional association in the financial sector, representing the
majority of financial institutions as well as regulated financial intermediaries and
other professionals established in Luxembourg, including lawyers, consultants and
auditors working in or for the financial sector. The Luxembourg financial centre
represents 135 banks worldwide, including the seven largest Chinese banks.
The Association of the Luxembourg Fund Industry (ALFI) represents the face and
voice of the Luxembourg asset management and investment fund community.
Created in 1988, the Association today represents over 1,500 Luxembourg
domiciled investment funds, asset management companies and a wide range of
business that serve the sector. These include depositary banks, fund administrators,
transfer agents, distributors, legal firms, consultants, tax advisory firms, auditors
and accountants, specialised IT and communication companies.
For more information, please follow us on :www.abbl.lu I www.alfi.lu
Members of:
Follow us on
Transparency Register : ABBL 3505006282-58 ALFI 6182372280-83
EU REPRESENTATIVE OFFICE IN BRUSSELS
With origins in corporate finance, retail banking and financial markets in the XIXth and XXth century, the Luxembourg financial centre has diversified and grown into a world class finance hub. It ranks among the top three in the European Union.
The main pillars of the Luxembourg financial centre are asset management, various banking activities, insurance and re-insurance, capital markets, sustainable finance, FinTech and Renminbi business.
Focusing on banking respectively fund and asset management, the main activities of ABBL’s and ALFI’s members are:
Retail bankingLuxembourg retail banks offer their clients products and services such as deposit and savings accounts, mortgage and consumer credits as well as payment solutions and investment services.
Corporate banking, capital markets and cash management In Luxembourg, banks and other financial market intermediaries play a essential role in the international corporate and wholesale markets. The Grand Duchy is a prime location for eurobonds and international loans. Financing of all types is available, including a.o. acquisition finance, project finance and green loans.
Private banking and wealth managementLuxembourg’s private banking and wealth management industry is uniquely specialized in cross-border services. It offers a full range of supporting services, including investment advice, asset management, family offices, wealth planning, real estate management, inheritance planning and philanthropy.
Depositary bankingLuxembourg is a world class depositary banking centre that goes hand in hand with its leading position as an investment fund centre. Luxembourg depositary banks are specialized in offering the fund industry a full range of services from custody of assets to risk management and distribution.
Luxembourg gives retail as well as institutional investors access to investment opportunities via its ranges of UCITS as well as alternative investment funds. A leading investment fund domicile, the world’s prime asset managers have chosen the country as main hub for cross-border distribution of their international fund ranges.
Undertakings for Collective Investment in Transferable Securities (UCITS) UCITS are European investment funds that fulfil the high-quality criteria of the directive of the same name. Recognizing the potential of the UCITS directive, Luxembourg was in 1988 the first Member State to transpose it into national law. It has since become the continent’s leader in investment funds and is worldwide only second to the US in assets under management. UCITS funds provide investors with the safeguards of a
retail-oriented regulatory framework. This makes the product not only attractive to retail but also institutional investors, chief among which pension funds. The success of this framework has been such that Luxembourg UCITS are currently distributed in over 70 countries across the world including Europe, Asia, Latin America and the Middle East.
Alternative Investment Funds (AIFs)AIFs are considered funds that are not UCITS. Their managers and partially the funds are regulated by the European Union’s Alternative Investment Funds Managers Directive (AIFMD). Luxembourg has since its conception considered the directive an opportunity to create a worldwide brand akin to UCITS. Since then Luxembourg has become a leading centre in particular for real estate funds as well as for private equity and venture capital funds.
ASSET MANAGEMENT
BANKING
Luxembourg is the leading centre for global fund distribution. The graph illustrates the market share of Luxembourg domiciled investment funds among foreign funds sold in different markets around the world.
Luxembourg is Europe’s leading investment fund domicile with 4,350 billions euros in asset under management.
WHO WE ARE BANKING STATISTICS ASSET MANAGEMENT STATISTICS
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Chile: 57%
Peru: 40%
Singapore: 68%
Hong-Kong: 81%
Japan: 59%Korea: 88%France : 58%
Germany : 56%Switzerland : 61%
Poland : 92%Denmark : 54%
Finland : 58%
Norway : 60%Sweden : 57%
Bahrain: 77%
EUROPE REST OF THE WORLD
24 GERMANY
15 FRANCE
08 ITALY
08 UK
07 SWEDEN
06 LUXEMBOURG
04 BELGIUM
03 NETHERLANDS
03 SPAIN
02 ANDORRA
02 PORTUGAL
02 NORWAY
02 IRELAND
01 LATVIA
01 DENMARK
01 LIECHSTENSTEIN
01 GREECE
01 CYPRUS
01 JERSEY
The Luxembourg banking sector includes 139 banks of which 91 are headquartered in Europe and 48 in the rest of the world.
13 CHINA
11 SWITZERLAND
06 JAPAN
05 USA
04 BRAZIL
03 QATAR
02 ISRAEL
02 RUSSIA
01 CANADA
4891
Sour
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CSSF
, 201
8
— Number of banks per country of origin —
— International market share of Luxembourg —
— UCITS and AIFs assets — Top European domiciles —
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8
In Luxembourg, banks are highly capitalized and over the last years, the average solvency as well as liquidity ratio are above the required minimum european average.
— Solvency and liquidity ratios evolution (in %) —
2014 2015 2016 20182017
19,6%20,7%
24,8% 25,9% 25,2%
0
10
20
30
40
SOLVENCY
LIQUIDITY COVERAGE RATIO
2015 2016 20182017
500.0000 1.000.000 1.500.000 2.000.000 3.000.000 4.000.0002.500.000 3.500.000 4.500.000
150
250
200
157%
230% 236%
194%
as well as
LUXEMBOURG - 4,350,449
IRELAND
GERMANY
FRANCE
UNITED KINGDOM
NETHERLANDS
SWITZERLAND
SWEDEN
ITALY
SPAIN
OTHERS