Wealth & Asset Management

Final reports on ESMA’s guidelines and RTS: what are the upcoming liquidity management requirements under the new UCITS/AIFMD Framework?

In the context of the transition to the new UCITS/AIFM Directive, ESMA published on 16 April 2025, the final reports on its Guidelines and RTS on liquidity management tools under the AIFMD and UCITS Directive. The RTS was submitted to the Commission, which has 3-4 months to adopt it. Once published in the Official Journal, it is expected to apply on the 20th day following the publication . The Guidelines, in turn, are expected to apply for new funds from the same day as the RTS, meanwhile existing funds will be granted 12 additional months to comply with the new rules.

How intra-generational transfers disrupt inter-generational strategies

Get detailed insights into the shape of global wealth transfers intra-generationally, and into the views and plans of Baby Boomer inheritors.

How wealth managers can leverage complexity for competitive advantage

Client sentiment is shifting. Learn how wealth managers can respond with targeted improvements in financial and non-financial services.

How investment fund managers can seamlessly align digital resilience with delegation oversight 

On 9 April 2025, the CSSF published Circulars 25/881, 25/882, and 25/883, accompanied by a clarifying communiqué. These developments have drawn considerable attention across Luxembourg’s financial sector for their impact on information and communication technology (ICT) risk management, DORA implementation, and third-party oversight. Collectively, they represent a substantial step toward regulatory coherence and stronger digital resilience.

Why US Asset Managers should turn to Luxembourg

Luxembourg presents strong opportunities for US asset managers, but the regulatory and operational landscape differs from the US. To succeed, US managers must adapt to local requirements, work with trusted advisors, and choose compatible service providers. Understanding these nuances is key to achieving success in the European market.

Fund naming guidelines on ESG: last sprint in the 21 May deadline - are you ready?

A fund's name plays a key role in sharing important information with investors and acts as a vital marketing tool shaping and influencing investment decisions. In recent years, there has been a significant rise in funds that promote environmental and social characteristics, reflecting growing investor interest. By the end of 2024, funds promoting ESG characteristics (Article 8) and those with a sustainable investment objective (Article 9) accounted for EUR 6.1 trillion in assets, representing 60% of the total market share . This growing trend has raised concerns about the potential for misleading sustainability claims and the risk of greenwashing, especially when funds’ names refer to green or socially sustainable without meeting adequate standards.

Where will active ETFs go next?

ETF growth is spurred by new launches, attracting more capital and asset inflows. In 2024, 510 active ETFs were launched – around 80% of all ETF launches – and three firms each launched over 30 active ETFs. Competition is clearly fierce, and ETFs are being driven to innovate.

Know Your Assets: the last update of the CSSF as a wake-up call to all sectors

Know Your Assets (KYA) is a critical process that involves identifying, assessing and managing money-laundering and terrorist financing (ML/TF) risks posed by the investments, to which professionals of the financial sector, in scope of the law of 12 November 2004 on the fight against money laundering and terrorist financing, as well as professionals of the insurance sector, are exposed. The KYA practice is essential not only for compliance with regulatory requirements but also for effective ML/TF risk management.

Rise of active ETFs: hype, hurdles and road ahead

Actively managed ETFs differ from traditional passive ETFs by involving an investment manager who actively makes decisions to deviate from an index or benchmark. These ETFs aim to outperform through strategic security selection and sector allocation, and – while they also come with their own challenges – offer flexibility to adjust allocations based on research and market conditions.

Retailization of Alternatives - focus on semi-liquid products 

Retailization refers to the process of making alternative investments – such as private equity, venture capital, real estate, infrastructure and hedge funds – more accessible to retail investors or non-professional individuals.

The active ETF window: Luxembourg’s golden opportunity

For years, exchange-traded funds (ETFs) have been synonymous with passive investment strategies, tracking indices with low fees and broad market exposure. However, as financial markets become more volatile and investors seek more agile strategies, actively managed ETFs are gaining traction. While still a small portion of the European ETF market – just over 2% – this segment is experiencing significant growth.

Mergers and acquisitions (M&A): Keys to a clean integration

The success of a transaction does not only rely on financial criteria. It also depends on the acquirer's ability to effectively integrate the target into its operations while maximizing synergies and considering essential human dimensions.

Timber and carbon funds: the pivotal role of Luxembourg in the asset class

Over the past few years, the demand for sustainable investment solutions has grown significantly, driven by increasing awareness of climate change and environmental concerns. As investors seek to align financial returns with sustainability objectives, timber and carbon funds have emerged as alternative asset classes offering both diversification benefits and measurable environmental impact.

Revving up for FASTER

The EU Directive on Faster and Safer Relief of Excess Withholding Taxes (FASTER) has been officially adopted by the Council of the European Union. This Directive aims to make withholding tax procedures safer and more efficient for cross-border investors, national tax authorities, and financial intermediaries.

Could the EU Retail Investment Strategy contribute to a more competitive Europe?

European Union's RIS (Retail Investment Strategy) aims to reshape Europe's financial landscape, addressing the historical gap in market engagement between European retail investors and their global counterparts.

Growing enthusiasm propels digital assets into the mainstream

A joint survey by EY-Parthenon practice and Coinbase reveals rising investor enthusiasm and adoption of digital assets, driven by regulatory clarity and innovation.

Transformation: A matter of survival for alternative asset managers

Over the past few years, the alternative asset management industry has undergone profound changes driven by consolidation and increasing fee pressure from global institutional Limited Partners (LPs). These trends are reshaping the competitive landscape and forcing private equity firms notably to rethink their strategies. How can alternative asset managers adapt to these challenges and remain relevant in a rapidly evolving market?

Structured finance and securitization: Catalysts for more inclusive finance via microfinance

Microfinance plays a critical role in advancing financial inclusion, providing essential credit access to unbanked populations worldwide. How can Luxembourg’s favorable position as a leading jurisdiction for securitization and structured finance address the growing demand for microfinance services?

Top 10 resolutions for wealth and asset management success in 2025 

Our global outlook highlights 10 resolutions that wealth and asset managers should take to drive growth in 2025.

CSSF CIRCULAR 24/856: Tolerance threshold analysis and corrective actions – what is the impact on ppen-ended vs. closed-ended UCIs? 

On 28 March 2024, the CSSF issued Circular 24/856 (the “Circular”) to establish a new regulatory framework for investor protection concerning NAV calculation errors and non-compliance with investment rules at the UCI level. Effective from 1 January 2025, this Circular replaces the previous CSSF Circular 02/77.