Luxembourg Funds Intelligence Briefing (25/01/2021)

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Government says financial sector teleworking framework must wait, and other business-critical fund industry news.

Luxembourg Funds Intelligence Briefing
25th January 2021

Luxembourg’s finance ministry says the financial services industry will have to wait for a new framework on teleworking in the sector, saying consultation with stakeholders is still ongoing. A provisional agreement was reached between employers and trade unions last year, which would tackle issues such as formalising procedures for employee-client contacts. A critical element for the government and the CSSF is how to reconcile increased flexibility on remote working, especially for cross-border commuters working in the industry, with substance requirements for Luxembourg companies if work is not being carried out within the country.

— Simon Gray, Editor in Chief

Sustainable Finance
IQ-EQ launches simplified ESG compliance tool

Fund, corporate and investor service provider IQ-EQ has launched the IQ-EQ Compass, which is designed to simplify compliance with environmental, social responsibility and governance standards and transparent ESG reporting. The tool incorporates various reporting frameworks, including metrics backed by the UN Principles for Responsible Investment network and the World Economic Forum.

Best source: InFinance
See also: Institutional Asset Manager

Asset Management
Daniel Capocci to head Luxembourg-based FIA Asset Management

FIA Asset Management, a subsidiary of Luxembourg’s Farad Group that provides discretionary management to institutional and family office clients, has appointed Daniel Capocci as CEO, subject to regulatory approval. A former director at Architas Belgium and Deloitte Luxembourg, Capocci most recently has been responsible for operations and risk management for the Luxembourg-domiciled funds of NBG AM, the asset management subsidiary of the National Bank of Greece, since 2019.

Best source: Boursorama (in French)

Fund Services
Foresight Group obtains AIFM licence in Luxembourg

UK infrastructure and private equity investment manager Foresight Group has obtained an alternative investment fund manager licence in Luxembourg, which it says will strengthen its presence in continental Europe and ensure continuity of its activities in the wake of Brexit. The group’s office in the grand duchy will be headed by Adela Baho and Jasper Jansen, who have joined Foresight as directors and conducting officers. Foresight, which has a total of £6.8bn in assets under management, currently runs two Luxembourg-domiciled funds, the €75m Foresight Italian Green Bond Fund and the €430m Foresight Energy Infrastructure Partners.

Best source: Luxembourg Chronicle

CORRECTED: Fund services group Carne targets top three ranking among Luxembourg management companies

Ireland-based fund services group Carne says a €100m investment from London-based private equity Vitruvian Partners can help it achieve its goal of becoming one of the top three management company service providers in Luxembourg over the coming year. Carne, which has operated in the grand duchy since 2006, employs around 50 people at its offices in Luxembourg City’s Cloche d’Or district. The group serves 550 clients worldwide and oversees $3trn in assets. The investment, announced last week, is subject to regulatory approval.

Best source: Paperjam (in French)

Universal-Investment fined by CSSF for AML breaches

The CSSF has fined German-owned fund management group Universal-Investment-Luxembourg a total of €45,000, comprising €21,200 for breaches of anti-money laundering rules and €23,800 for failure to comply with investor protection risk management requirements. A subsidiary of Frankfurt-based Universal-Investment, the firm serves a mainly German-speaking client base. It says neither its funds nor investors were disadvantaged by the regulatory breaches, nor were its day-to-day operations affected.

Best source: Luxembourg Times (subscription required)

Financial sector teleworking framework still being discussed with stakeholders: Finance Ministry

Luxembourg has yet to introduce a detailed governance framework for domestic and cross-border teleworking in the financial sector, despite a provisional agreement among employers and unions last June that was debated in parliament in September. The proposed legislation would formalise procedures for employee-client contacts, and address issues regarding the impact of teleworking on business substance rules. However, neither the Finance Ministry nor the CSSF is currently ready to comment publicly on the state of advancement of the project, saying discussions with stakeholders are still ongoing.

Best source: Wort (in French)

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