France’s rhetoric
It comes as British prime minister Theresa May announced last week that she will trigger Article 50 on 29 March, which officially launches the two-year process of Britain leaving the EU.
The French prime minister, Manual Valls, vowed last summer to make its tax regime for British expatriates the most favourable in Europe as Paris looks to lure talent away from London’s financial services industry following last month’s Brexit vote.
However, Thomas Seale, chief executive officer of European Fund Administration (EFA), said Luxembourg will not be “too aggressive” as it already has close links with the UK’s investment industry.
Despite Brexit jitters, Alfi reported in February that assets under management in Luxembourg-domiciled funds grew by 7% to €3.74trn last year, of which 17% were held by UK-based firms.
“Our approach is a good one, we’re not being too aggressive and that’s a better approach as our industry is very complementary with that of the UK.
“We are seeing some movement, notably UK-based asset management companies that are reliant on EU passporting but now realise that they might need a footprint in the EU. So Luxembourg is probably getting some interest along those lines,” he told IA.
Seale added that in light of May’s announcement last week “asset management companies are hoping for the best but preparing for the worst”.
