Stock exchange takes stake in fintech firm to boost bond listing business, & other business-critical industry news

Check out this week’s (Dec. 9, 2019) Luxembourg Funds Intelligence Briefing from VitalBriefing. Don’t miss out on the latest critical news and developments impacting the funds industry.

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Luxembourg Funds Intelligence Briefing
9th December 2019

The Luxembourg Stock Exchange has taken a small minority stake in UK financial technology company Origin, which offers digital execution of bond transactions and automation of the flow of related securities documentation. The exchange hopes the tie-up will help boost its bond listing business by replacing manual processes and simplifying the bond issuance process.

— Simon Gray, Editor in Chief


Asset Management
Luxembourg fund assets up slightly in October

The assets under management of Luxembourg-domiciled investment funds rose by 0.17% in October to €4,577bn, according to the CSSF. Net inflows equivalent to 0.34% of assets were offset by a 0.17% decline in the market value of assets already held by funds. Over the previous 12 months, assets under management were up by 8.81%.

Best source:

Luxembourg Chronicle


Fund Services
Crestbridge receives Luxembourg fund administration licence

Luxembourg financial regulator CSSF has granted Crestbridge a fund administration licence, adding to its existing management company and European Venture Capital licences in the grand duchy. The firm established a Luxembourg ManCo in 2011 and in 2014 was one of the first providers to establish an AIFM. Crestbridge, which provides fiduciary, administrative, accounting and compliance services to corporations, wealth funds, asset managers, investor groups and ultra-high net worth families, also has offices in Jersey, London, Bahrain, New York and the Cayman Islands.

Best source:

Verdict
See also:

Asset Servicing Times
See also:

International Investment


Regulation
Klik&Pay customers complain at lack of information months after payment platform suspension

Customers of payment services platform Klik&Pay, whose activities were suspended by the CSSF in July, say their inability to access their funds is causing hardship and in some cases driving small businesses toward bankruptcy, but they have received no information about when they might see their money. The regulator announced that it took action against Klik&Pay’s operator, CYBERservices Europe, on the grounds that the company breached the provisions of Luxembourg’s payment services legislation regarding customer protection requirements, by failing to keeping customer funds in a segregated account with a different financial institution. CSSF CEO Claude Marx insists the regulator’s duty is to monitor providers and take action in the public interests if the law is not respected.

Best source:

Tageblatt

(in German)

Irish central bank to review property funds in scrutiny of shadow banking system

Gabriel Makhlouf, governor of the Central Bank of Ireland, has ordered an in-depth review of funds investing in Irish real estate as part of a review of the country’s shadow banking providers. The central bank estimates that funds hold 35% of Ireland’s commercial property assets. Shadow banking providers improve liquidity and risk-sharing, Makhlouf says, but they also open up new channels for transferring risk.

Best source:

Irish Times


Technology
Luxembourg Stock Exchange acquires 10% stake in UK fintech firm Origin

The Luxembourg Stock Exchange has acquired a 10% stake in UK financial technology company Origin, launched two years ago, for an undisclosed amount. The London-based company offers digital execution of bond transactions and automation of the flow of related securities documentation. A total of 22 investment banks and 85 issuers currently use Origin’s platform, and debt instruments worth $20bn have been originated on the platform so far this year.

Best source:

Luxembourg Times

(subscription required)
See also:

Wort

(in German)

Technology organisations to establish blockchain research hub

Five technology groups and research organisations, Infrachain, LëtzBlock, the Luxembourg House of Financial Technology, the Luxembourg Institute of Science and Technology and the University of Luxembourg’s Interdisciplinary Centre for Security, Reliability and Trust, have joined forces to establish a hub for blockchain and distributed ledger technology research, development and innovation. The partners will focus on three priorities: R&D relating to finance, health, industry, mobility and logistics; establishing a blockchain competence community including training; and R&D on blockchain governance standards.

Best source:

Luxembourg Chronicle

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