In a post-recession climate still awaiting economic recovery, Financial Services Professionals (Professionnels du Secteur Financier – PSF) stand out as an essential and solid pillar of Luxembourg’s industry, according to Deloitte Luxembourg’s latest annual PSF report. The report is the fourth of its kind and was officially presented at the Deloitte PSF conference at Mudam on Tuesday 11 November. 
“We have been observing the PSF industry from its very beginning, and supported the industry through our analysis and expertise in the field. The PSF sector has continuously managed to rise to the challenges it faces and offers a great range of opportunities in the Luxembourg market. This makes it a consistent and steady employer and an important economic player” says Stéphane Césari, audit partner and PSF industry services leader at Deloitte Luxembourg.

The two-volume whitepaper analyses the current changes, trends and challenges faced by the PSF industry in Luxembourg. The brochure entitled “Overview and outlook of a lively sector” offers a holistic and clear picture of the PSF market and the PSF licences. This new edition comprises studies of the latest PSF figures and features interviews with key people in the marketplace as well as articles on topical issues. The other brochure, entitled “Professionals of the Financial Sector (PSF) in Luxembourg - At the heart of regulatory and tax environments”, addresses the essential aspects of the legal and regulatory framework applicable to PSF, and serves as a practical and complete tool for all PSF professionals.

Family Offices entering the market
At the end of 2013, the number of PSF entities reflected the relative stability of each of the three categories of PSF; Investment firms, Specialised PSF and Support PSF. This general trend is confirmed in 2014, even though the three types of PSF evolve in different directions. While new specialised PSFs are established each year, the number of investment firms and support PSF have slightly decreased.
Overall, the PSF sector has been quite stable since 2011, contrasting greatly with the noteworthy changes recorded between 2004 and 2011, when the number of PSF almost doubled.

The report concludes that the PSF industry continues to develop. This is evidenced by the positive development of the two new PSF licences: Family Offices, adopted by almost 200 PSFs, and special depositaries.

Regulatory challenges
The key highlights of this year’s study were presented and discussed at Deloitte’s PSF conference at Mudam on Tuesday, with a special focus on the new challenges related to the significant shift in the OECD paradigm, prompting PSF players to review their business model.
“We believe that these changes represent opportunities. The PSF sector in Luxembourg has always been highly dynamic and able to adapt to a new regulatory framework while staying competitive and develop new service offerings,” concludes Raphaël Charlier, audit partner and co-leader of the PSF industry services at Deloitte Luxembourg.

The PSF conference gathered around 120 financial services professionals and presented the views of various stakeholders, represented by Tom Théobald, Deputy CEO of Luxembourg For Finance, Vincent J. Derudder, Chairman of the Nucleus Group, Eric Magrini, CEO of Corporate & Private Client solutions of Capita Asset Services and Bernard Moreau, Director of the Association of Support PSF and CEO of Labgroup.

Complete versions of the whitepapers are available in English and French on the Deloitte Luxembourg website at: www.deloitte.com/lu/industries/psf.