Luxembourg for Finance, the development agency for financial services in the Grand Duchy, has outlined its ambitions for the next five years, focusing on sustainable finance, innovation and its cross-border expertise.
According to its ‘ambitions’ paper, which sets out a five-year vision for the development of a sustainable financial industry, the plan centres around six main components, including leading on sustainability; pushing innovation; responsible governance and nurturing the human dimension.
It also plans to further expand its role as a cross-border centre of excellence and EU hub, underlined by more than 60 financial firms strengthening their existing activities, or setting up a new EU hub in Luxembourg, in the wake of Brexit.
In addition, the five-year plan suggests the Grand Dutchy will have an increased role in the wealth management and alternative funds space with new services to be offered in these areas.
The report stated: “Over the years, Luxembourg has become the go-to hub for financial institutions operating on a cross- border basis in the European market. Strengthening its role as a centre of excellence for international finance by creating value through multi-jurisdictional expertise and cross-border strategies is another objective for 2025.
“This expertise will also be vital in expanding Luxembourg’s role in wealth management and alternative investments, notably by further developing Luxembourg’s offer in terms of family office and multi- family office service as well as seizing onshoring trends in alternative investments to increase its status as a European hub in the sector.
Having already successfully positioned itself as a leading centre in green finance, Luxembourg now intends to be known as a hub for impact investing.
Projections published in the Luxembourg for Finance report suggest that the sustainable finance sector will be worth $3 trillion (£2.3 trillion) by 2025.
The five-year plan adds that the country will continue its innovation efforts to create a new environment, products and services while retaining a stable environment and its AAA rating.