Legislation reform and arrival of Chinese banks spell good news for Luxembourg

Signs including a new unregulated fund product, reform of company law and the moves of eight Chinese banks to Luxembourg suggest a bright future for Luxembourg, says Ogier practice partner Francois Pfister.

The Reserved Alternative Investment Fund (RAIF) model, which cuts duplication of compliance obligations by targeting regulation at managers and not underlying funds, has seen significant interest, and has been followed by other jurisdictions.
 
At the same time, Brexit and company law reform are also attracting interest to the EU state, and within the last month, an eighth Chinese bank has signalled its plans to move to Luxembourg, continuing a trend that has been developing over the last few years.
 
Pfister (pictured) says: "There has been speculation that the process around Brexit will push more entities to Luxembourg and Dublin as an alternative to the UK, and we have certainly seen an increased level of activity.
 
"Besides that, the RAIF and company law reforms have offered new opportunities for fresh approaches to structuring, and the presence of an increasing number of Asian – and particularly Chinese – institutions demonstrates that this interest is leading to tangible activity."
 
In 2016 alone, Ogier has been named the Offshore Law Firm of the Year by Chambers Europe, Hedgeweek Global Awards and the Alpha Awards, following up on similar awards from The Lawyer and STEP the previous year.
 
The firm has also won awards for Best Rebranding Campaign, High Yield Deal of the Year and Caribbean Law Firm of the Year during the last 12 months.

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