Today, Private Banking represents one of the leading activities of the Luxembourg financial centre. Financial sector professionals, including banks and wealth managers, dedicate a large part of their efforts to developing and delivering individually tailored services.
Hence, numerous institutions and wealth managers have gained extensive expertise in the field of private banking, reflected in their comprehension of customer needs, quick response time, personal attention and discretion.
The Luxembourg private banking centre of excellence recognition is a result of several factors:
- Due to their international expertise and high profile, Luxembourg entities are considered key contributor to the group’s global clients value proposition;
- The Luxembourg financial centre offers a complete range of services to both private and institutional investors;
- Thanks to the flexibility, quality of service and experience gained in the investment fund industry in Luxembourg, some private bankers have developed transaction hubs in Luxembourg for servicing other group entities located in Europe, Middle East and elsewhere;
- As a result of innovation and the flexibility of the legal framework, Luxembourg private bankers have developed recognised vehicles providing the group with flexible, tailor-made and efficient solutions in wealth engineering.
Luxembourg entities are also considered strong contributors to the group’s net profits, encouraging headquarters’ support. The Luxembourg average Return on Assets (RoA) is 70 to 80 basis points, which is on average 10% to 15% above headquarters’ RoA.
For wealthier customers, many banking institutions offer a global wealth structuring service which encompasses all the client’s assets (such as investments, life assurance and real estate) and includes optimised tax and heritage planning.
Luxembourg law lays down very strict rules regarding customer privacy. These laws apply to all employees of credit establishments and forbid the transmission of any information relating to a customer account, except in certain cases expressly defined by the law.