Luxembourg reaping the benefits of 'Brexodus'

Luxembourg's financial sector including banks, insurers, investors and asset managers grows as Brexit leads to UK based firms setting up new offices and relocating to the European Union.

Luxembourg skyline
Brexit relocations have become a major driver behind the expansion of Luxembourg's financial services sector over the past year, a new report has revealed.

Brexit is leading to growth in Luxembourg's financial services sector

The public-private agency Luxembourg for Finance said that, during 2018, 80 new licenses were granted to banks, asset management companies, insurers and investment firms, with 47 of the companies publicly announcing they were relocating some of their activities because of the impending departure of the UK from the European Union.Half of these firms represented asset managers with the remainder being a mixture of banks, insurers and payment service providers. Luxembourg for Finance offered no estimate on how many jobs would be moving from London to the grand duchy.

Luxembourg provides cross-border opportunities to modern financial sector

Nicolas Mackel, chief executive of Luxembourg for Finance, said, "Luxembourg's proposition to the global financial sector is stronger than ever. We are known as a cross-border focused centre and this status has only been underscored by Brexit."Our offer is also constantly evolving to meet the future needs of finance, which means continuing to curate a modern, ambitious and outward looking financial centre, that provides clear development plans and practical support."The progress we have made over the last year in sustainable finance, digitalisation, and in deepening relationships with global brands and major economies like China is testament to that approach."

Asset management and private equity firms relocate to Luxembourg following Brexit

Asset managers and private equity firms including Fidelity, M&G, Aberdeen Standard Life, Columbia Threadneedle and Wells Fargo have moved to Luxembourg or reinforced their presence there, in the wake of Brexit, the agency said.International Investment reported on its website, "An important factor in Luxembourg's ability to continue to attract new business is its long-term stability, underpinned by its consistent AAA credit rating."Luxembourg's continued attractiveness as an EU hub for international financial institutions was highlighted by the arrival of Bank of Singapore and Banco Santander Brasil in 2018."Currently 136 banks from 28 countries rely on Luxembourg as their European or international centre for a variety of competencies, including corporate finance, wealth management, custody and other fund services."

Sony is latest company to relocate HQ from the UK to the Netherlands and the EU

In a separate development, Sony has announced that, to avoid Brexit disruption, it is going to move its European headquarters from the UK to the Netherlands. The Japanese company said relocating its HQ would help avoid any customs issues after Brexit, although Sony said it would not be moving any its personnel or operations from the UK.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Global Mobility Toolkit download factsheets resource centreAccess hundreds of global services and suppliers in our Online DirectoryClick to get to the Relocate Global Online DirectorySubscribe to Relocate Extra, our monthly newsletter, to get all of the international assignments and global mobility news.