Ethics and governance in the European Financial centers

At the invitation of ABBL Chairman, Mr Jean Meyer, the members of the ABBL (Luxembourg Bankers’Association) had an opportunity to hear further details given by Luc Frieden, Treasury Minister, during a reception, about his proposal for a future agency for the development of the Luxembourg financial centre.
The aim of this agency is to make the advantages of Luxembourg better known abroad, primarily to its immediate neighbours, but also in Asia, Eastern Europe and the United States. A sum of several million euros drawn fromthe exceptional revenue accruing from the Arcelor-Mittal merger, will be placed at the disposal of this joint venture between the Finance Ministry and private players in the financial sector.
The Minister said that this“substantial” investment was necessary to ensure professional promotion of thefinancial centre. The messages and activities will be developed in coordination between these different players. By taking a majority share holding interest in the agency, the government wishes to give clear evidence of its commitment to the promotion of the country. The agency’s main aim is the promotion of the financial centre. However, the Minister also wants the general attractiveness of Luxembourg as a place to do business to be presented beyond its frontiers. The ABBL Chairman, Jean Meyer, said that the Association supported this idea. It was important to make the fact that Luxembourg is not only a financial centre, but also has an “economic hinterland”, more widely known abroad. The Minister expressed his willingness to meet representatives of the financial centre in the near future to discuss the arrangements for setting up the agency.In his address, the Minister also commented on the latest situation regarding the “1929 holding companies”.He confirmed the fact that a new structure known for the time being as a “Family Asset Management Company” (SOGEPAF) to replace that of the “1929 holding companies” will be submitted to Parliament in a few weeks time. Other subjects, such as the transposition into domestic law of the European MIFID directive,and the need for the banks to adjust to these new constraints were raised. MIFID will have a significant impact on the organisation of the banks and on their systems. The Minister went on to stress the importance of opening the Luxembourg employment market to highly qualified experts of non-EU nationality.

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