"The impact of Brexit propelled a surge in traffic to our site."
In the wake of Brexit, major financial services firms have made significant shifts in their business operations, with many choosing to relocate from London to European cities like Luxembourg. This move has been driven by the city's internationally oriented financial centre, robust regulation, and compatibility with various legal systems around the world.
Luxembourg's allure as a financial hub is evident in the number of licenses issued by its supervisory authority. According to reports, around 70 licenses have been granted, primarily in the fund sector. This emphasis on the fund industry is not surprising, considering Luxembourg's leading position in Europe when it comes to investment fund assets.
At the end of the third quarter of 2020, Luxembourg held the largest share of investment fund assets within Europe, accounting for 9% of the global total. This position is further bolstered by the country's specialization in asset management and its comprehensive ecosystem for asset managers and fund administrators.
Europe as a whole held 32.6% of global investment fund assets at the same time, with the USA leading the pack at 48.2%. However, Luxembourg's position as the second most important home to investment funds globally is a testament to its growing influence in the financial sector.
Countries like China, Australia, Japan, Canada, Brazil, South Korea, India, and South Africa trail far behind Europe in terms of investment fund assets. This trend suggests that Luxembourg's financial sector is not only competitive within Europe but also on a global scale.
The regulation in Luxembourg is crucial not only for fund companies but also for individuals who frequently travel abroad for work and need to manage their pension provisions across jurisdictions. The country's regulatory framework is designed to provide stability and compatibility with various legal systems, making it an attractive destination for businesses and individuals alike.
Our fund platform, Moventum-Office, is a testament to Luxembourg's appeal. It is used by financial and asset managers whose clients are based in various locations, not just in their home country. This demonstrates the global reach and appeal of Luxembourg's financial sector.
While Frankfurt has attracted mainly pure banks, and Amsterdam has drawn many trading businesses, Luxembourg continues to carve out its niche as a leading financial center in Europe and the world. Ireland follows Luxembourg with 5.9% of global investment fund assets within Europe, with Germany holding 4.6%. France, meanwhile, holds 3.8% of the European share.
In conclusion, the shift of financial services firms towards Luxembourg following Brexit has been a significant development in the European financial landscape. The city's strong regulatory framework, specialization in asset management, and international orientation have made it a hub of choice for many businesses and individuals seeking a stable and compatible financial environment.
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