Investment Officer Luxembourg

📢 New CSSF valuation guidelines on the horizon for Luxembourg fund managers Luxembourg’s financial supervisor, the Commission de Surveillance du Secteur Financier (CSSF), has revealed plans to revise its valuation guidelines for investment fund managers, with changes set to be formalised in 2025. In a speech on Wednesday by Jean-François Carpantier, head of the UCI Risk Macro division, at a Luxembourg Valuation Professionals Association (LVPA), eight key areas of enhancement were outlined, aiming to address persistent issues and strengthen transparency and resilience in the face of evolving market conditions. Key updates will include: - Alignment with AIFMD principles - Stricter governance on valuation models - Increased transparency for investors - Stress scenario planning and independence of functions “Robust valuation processes are essential for maintaining the integrity and resilience of Luxembourg’s investment fund ecosystem,” Carpantier told an audience of valuation experts. “This revision will provide clearer guidance to help fund managers enhance their valuation frameworks in the face of evolving market conditions and economic uncertainties.” With #Luxembourg being a global hub for #privatemarkets, these revisions are set to impact over 14,000 #alternativefunds, especially as digitalisation and AI reshape valuation practices. Fund managers are encouraged to review their frameworks in anticipation of these upcoming changes. Full story on Investment Officer Luxembourg: https://lnkd.in/gwYrM-2k #Valuation #CSSF #AIFs #InvestmentFunds #FundManagers #AIFMD #Finance #Digitalisation #AI #Resilience

With the #powerstruggle between #China and the U.S., #geopolitics has made a comeback on the #investor agenda. Reason for us as editors to create a #series on geopolitics and #investing. In seven episodes, we will discuss various geopolitical and market shifts that are changing the investor landscape, from #Europe's challenges to China's rise, #AI impacts and the global #energytransition. https://lnkd.in/e6mmdDj3

Few countries elicit such mixed analyses in the West as #China. This seventh and final part of the #InvestmentOfficer #longread feature series on #geopolitics and #investing focuses on the People's Republic. While geopolitical strategists predict it will surpass the United States as the dominant global power this century, investors see a nation increasingly constrained by state control. As a result, the dynamism of private enterprise is weakening. Arthur Kroeber, China expert and head of research at Gavekal, and ING's Bob Homan spoke to Cees van Lotringen and explained why they have adopted a cautious wait-and-see approach. https://lnkd.in/evSxqFWG

🚨 NAV errors and fund valuation in Luxembourg: New CSSF rules 🚨 Starting January 2025, Luxembourg’s financial watchdog, the Commission de Surveillance du Secteur Financier (CSSF), will introduce its first major update in two decades regarding the valuation of investment funds. While much remains familiar, key changes—like lower limits for money market funds and mandatory #exante checks—are set to enhance oversight and provide clearer guidance. 💡 What You Need to Know: - Fund managers will need to review their processes to meet these new standards. - The CSSF's new Circular 25/856 addresses recurring issues like #NAVerrors and #investmentbreaches, which in 2023 alone led to 49.6 million euro in investor compensation. - Industry insiders share a variety of views on the real impact, with some pointing out increased clarity, while others highlight potential grey areas. 🎙 “The Luxembourg fund industry is growing, and there are many new players. The CSSF circular is very useful for those unfamiliar with the rules,” Emmanuel-Frédéric Henrion, Clifford Chance partner, told #InvestmentOfficer's Mike Gordon. Also with Virginie Boulot at Deloitte and Viviane de Moreau d'Andoy. Get the full breakdown and market insights: https://lnkd.in/e5aEPTK2 Free to read for Investment Officer Luxembourg subscribers. Get your free subscription at https://lnkd.in/ePsb4gZi #Luxembourg #CSSF #InvestmentFunds #NAVerrors #InvestmentValuation #Finance

This week, President Ursula von der Leyen revealed her new slate of Commissioners. Among them, the candidate for Commissioner for Financial Services stands out as a key figure, given the post’s critical role in shaping the regulatory landscape for Europe’s financial sector in the years ahead. However, the nomination of Maria Luis Albuquerque comes with substantial challenges before she can formally take office. Albuquerque, the former Portuguese finance minister known for her austerity measures during the eurozone crisis, brings extensive experience from both the public and private sectors. Yet, her recent role at Morgan Stanley has already sparked controversy, raising questions about potential conflicts of interest and her deep ties to major financial institutions. While some praise Albuquerque's technical expertise, the European Parliament is likely to scrutinize her candidacy closely, particularly at a time when trust in financial regulation is paramount. If confirmed, she would be tasked with spearheading pivotal initiatives, including the long-awaited Capital Markets Union and strengthening anti-money laundering (AML) frameworks—both areas critical to the EU’s financial future. Her path to approval will be closely watched, as the stakes for Europe’s financial governance could not be higher. Read more at https://lnkd.in/eBDdPmzU 🔒 #EUCommission #FinancialRegulation #MariaLuisAlbuquerque #CapitalMarketsUnion #AML #Leadership #Governance

#NAVerrors are a hot topic in #Luxembourg: Luxembourg’s financial regulator Commission de Surveillance du Secteur Financier (CSSF) on Thursday said it has issued a relatively small fine to VISTRA Fund Management S.A. for a class of transgression with huge implications for the industry: #valuations of investment funds, in particular for unlisted alternative investments. With the CSSF having released its first update of its circular on rules for net asset valuations, or NAV, in 20 years, with lawyers and fund managers discussing its impact, the 23,000 euro fine the regulator issued to Vistra is more interesting than such small fines tend to be. The CSSF announcement can be seen as a prelude to more discussions in Luxembourg during the coming weeks and months, ahead of the new regulatory regime that will enter into force in January 2025. The topic also is on the agenda next week of events hosted by ALFI - Association of the Luxembourg Fund Industry and the Luxembourg Valuation Professionals Association (LVPA). Vistra Group, in an email to Investment Officer from its Hong Kong offices, said the fine only applied to its Luxembourg subsidiary VFM as AIFM, and not to Vistra (Luxembourg) Sarl, which is responsible for computing net asset values. It also underlined that the fine "relates to the independence of the valuation function from the investment advisor or delegated portfolio manager, not to NAV computation errors.” https://lnkd.in/etgVhefb

🇫🇮 Quintet goes Finland 🇫🇮 Quintet Private Bank has launch a Luxembourg-based Finnish desk by building a new team that it hired from competitor UBP - Union Bancaire Privéeée in the Grand Duchy. The move also reconnects a former Danske Bank team. The new team, consisting of five seasoned Finnish professionals resident in Luxembourg with over a century of combined experience, will focus on serving high net worth individuals and families from #Finland and the wider Nordic region. Finland is home to more than 100,000 millionaires. #InvestmentOfficer heard from Mads Midtgaard. With Tero Gabrielsson, Ole Jensby and others. https://lnkd.in/e9VXWWd6

🚗 It's European Mobility Week and a striking statistic has emerged: 75% of all commutes in #Luxembourg are still made by car, according to Eurostat. Despite efforts to promote public transport and ecological alternatives, cars remain the dominant choice, in particular for the hundreds of thousands cross-border workers in the Grand Duchy. This week's column by Gregory Kennedy explores this issue through the lens of two cross-border workers: https://lnkd.in/erCT8pQN Gregory highlights the pressures faced by those commuting daily from neighbouring countries, including longer traffic jams, social alienation, and an erosion of their quality of life. These struggles echo Luxembourg's ongoing challenge to shift mobility patterns. 🌍🚴♂️ #Freetoread As Luxembourg’s roads become increasingly congested, what changes would you like to see to make public transport or greener alternatives more viable options for your daily commute? #EuropeanMobilityWeek #Sustainability #Luxembourg #PublicTransport #Commuting #InvestmentLife

It appears a new era has dawned in Europe's financial sector, where banks are on the prowl for asset managers in the insurance sector, thanks to a cost-saving flexible interpretation of the recently updated bank capital requirements. French banks are making significant strides that could reshape the European #assetmanagement landscape by leveraging what is known as the #DanishCompromise, which allows flexible treatment of acquisitions of insurance-related financial services firms under the near-final #Basel3 bank capital requirements. The acquisition of AXA Investment Managers by BNP Paribas thus heralds a new era under #BaselIII regulations, says Mediobanca’s bank analyst Andrea Filtri. “The once-forbidden dream is now reality, opening new horizons for mergers and acquisitions,” he told #InvestmentOfficer's Max Severijns. “We are witnessing a revolutionary period in European banking. The full impact of these changes will unfold over the coming years, potentially setting new standards for how banks operate within regulatory frameworks.” For Dutch banks like ING and ABN AMRO Bank N.V. the #DanishCompromise could rekindle interest in the insurance businesses they sold post Great Financial Crisis, like a.s.r. and Nationale-Nederlanden. However, the magnitude of such transactions would face substantial political and regulatory hurdles that might impede progress. Full story at Investment Officer Luxembourg: https://lnkd.in/edvdXf_f

We're pulling together this week's top #InvestmentOfficer articles in this latest edition of the Asset Owner News Brief, a Linkedin newsletter available via Investment Officer Luxembourg. With elucidating and actionable insights from, among others, Irina Stoliarova LL.M, Marjorie Andre, Laurent Denize, Gregory Peters, Ronald Temple, Christian Scherrmann, Mara Dobrescu, CFA, Peter van der Welle, Laurens Swinkels Tom Bailey, Martijn Rozemuller, and Christopher Mellor. This week's topics, among others: #SFDR, #transitionfunds, #competitiveness #Draghi #Eltifs, #BondMarket #USbonds #Tax #nondom #UK #passiveinvesting #activeinvesting #firsthalfearnings #defence #defense #ETFs #AssetManagement #AssetServices #FundManagement #AssetOwners #PrivateBanking #Luxembourg #familyoffices Mike Gordon Justin Doornekamp Max Severijns Geert Dekker Lenneke Arts Raymond Frenken Emmanuel Vanbrussel Josephine (Jip) Schoon