The outlook and future of a persistent sector in turbulent times


2020 - The outlook and future of a persistent sector in turbulent times

Professionals of the Financial Sector (PSF) in Luxembourg

Each year, the Luxembourg financial center reasserts its leading role in the global financial sector. The country’s reputation among clients coming to Luxembourg for its quality services is built on the expertise and know-how of its Professionals of the Financial Sector (PSF).

The PSF industry in Luxembourg numbered 270 entities at the end of September 2020, compared to 278 at year-end 2019. In terms of jobs, the sector has employed more than 15,000 people over the past few years, representing 16,000 in August 2020. The PSF market continues to display definite robustness, despite a slight decrease in the number of entities and employees in recent years.

Competitiveness is inherent in all markets. In a regulatory and technological environment that is constantly evolving, or even revolting, it is important that PSF focus on their core business and adapt to tomorrow’s needs and changes. We are observing an ongoing remodeling of some organizations’ licenses, reflecting a better understanding of licensing requirements regarding the services provided and, in some areas, a quest for synergy that results in a concentration of players and a new range of service offerings.

In 2020, PSF, no different from any other financial market actor, experienced turbulence from the unexpected COVID-19 pandemic. However, as of today, PSF has shown amazing resilience, having successfully implemented measures recommended by the CSSF as well as showing limited reduction of their results by the end of 2020. This resilience is expected to be a strong basis for future growth.

Through our detailed analysis of the PSF market, we hereby present the key trends and changes in this industry in an everchanging environment.

Integrating the latest PSF figures with detailed commentary, our report analyzes changes in the PSF market and demonstrates its dynamic nature. It features interviews with key people from the financial center and articles on topical issues, written by industry-dedicated professionals. The report provides an overview of PSF and illustrates the existing types and developments. It confirms the industry’s importance in the Luxembourg economy.

Considering the large range of significant regulatory and tax developments that have occurred in recent years, players in the industry have had to (and continue to) keep up to date and make necessary adjustments to comply with new requirements. And, in some areas, they have had to reimagine their service offerings and business delivery models.

We kindly thank Christophe Gaul, Mukesh Prayagsing, Manuel Ghidini, Patrick Useldinger and Michaël Zianveni for their valuable contributions to this brochure. Their complementary experience in this industry has provided us with an enlightened opinion of the latest PSF news and the sector’s prospects. We hope you will enjoy reading our publication.

We hope you will enjoy reading our publication.

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