Professionals of the Financial Sector (PSF) in Luxembourg
2018 - Outlook and future of an evolving sector
The Luxembourg financial centre reasserts its leading role in the global financial sector each year. The country's reputation for its quality services among clients coming to Luxembourg is built on the expertise and know-how of its Professionals of the Financial Sector.
The Professionals of the Financial Sector industry (PSF) in Luxembourg numbered 289 entities at year-end 2017, compared to 304 a year earlier. In terms of jobs, the sector has employed more than 15,000 people over the past years and this number almost reached 16,000 at the end of 2017. The PSF market displays definite robustness, with an increase in employment, despite the slight decrease in the number of entities in recent years.
Competitiveness is inherent in all markets. In a regulatory and technological environment that is constantly evolving, not to say undergoing revolution, it is important that companies focus on their core business and adapt to the needs and changes of tomorrow. We are seeing an ongoing adjustment of some organisations' licences, reflecting a better understanding of licensing requirements according to the services provided and, in some areas, a quest for synergy resulting particularly in a concentration of players. Through our detailed analysis of the PSF market, we present the key trends and changes in this industry in an ever-changing environment.
Integrating the latest PSF figures plus explanations, our report analyses changes in PSF and demonstrates their dynamic nature. It is enhanced with interviews with key people in the financial centre and articles on topical issues, written by industry-dedicated professionals.
The report provides an overview of PSF and illustrates the existing types and their developments. It confirms the industry's importance in the Luxembourg economy. There have been many new regulatory developments in 2017 and 2018, with MiFID II coming into force in January 2018, the application of the General Data Protection Regulation since the end of May 2018, and changes in IT outsourcing with the reform of Article 41 of the Law on the Financial Sector concerning professional secrecy. Players in the industry have had to (and continue to) familiarise themselves with all these topics, and make the necessary adjustments to comply with the new requirements.