BREXIT - Why Are British Funds And Companies Reallocating To Luxembourg ?

Recently, the whole world has witnessed a historic change. BREXIT is about to bring a new set up of the financial world. It's impact is spreading globally, but it will have a particular impact on one of the EU funding countries, Luxembourg.

In fact, the referendum on membership of the United Kingdom to the European Union held on 23rd of June, commonly called BREXIT, the short form for "the British exit", has led to a rather disappointing result for the European Union (EU), given that the British majority voted for the exit. Following this event, the analysts mainly focused on the disadvantages that Brexit has caused, but they neglected the numerous opportunities that were created for Luxembourg. Practically, one of the consequence of this referendum is the loss of the European passport for the UK funds and companies, which undoubtedly leads to a reallocation of the City business sector.

Essentially, it is a chance for Luxembourg to host financial activities, as well as to allow the reallocation of various English funds and companies. The High Committee of the financial market (informal department), consisting of representatives of the Ministries of Finance and the most important Luxembourg companies, has already considered this scenario and announced that Luxembourg was able to ensure the reception of the various activities.

In the context of the Luxembourg banking sector, which already includes 143 institutions, it is preparing for the arrival of new banks, in particular for those that are not part of the Community area, but whose headquarters were in London. The targeted banks are mainly institutions from America, Australia, Canada, Switzerland, China or Turkey.

However, it must be emphasised that the banking lobby prioritises the establishment in Luxembourg of specialised funds in wealth management and investment funds and companies.

Thus, to better understand the process that concerns the reallocation of English funds and companies, it must firstly be mentioned the benefits of an eventual reallocation to Luxembourg and, secondly, a detailed analysis of the mechanisms and steps to take.

1. Why choose Luxembourg?

   Luxembourg has a strong appeal on the world stage of investment funds and companies since the country meets the growing concerns of investors and has demonstrated significant financial stability in recent years. Thus, Luxembourg is the perfect destination for investors for the reasons already mentioned, but also because it has an...