A financial delegation headed by HRH the Crown Prince of Luxembourg accompanied by the Crown Princess and led by HE Pierre Gramegna, Luxembourg Minister of Finance, is currently visiting Brazil. 70 high-level executives from Luxembourg’s international financial centre have joined the official delegation.
The three-day visit from 17th to 19th November includes two financial seminars in São Paulo and Rio de Janeiro for Brazilian bankers, asset managers and financial sector professionals, introducing the Luxembourg financial centre as a leading European hub for international investors and asset managers.
Brazil and Luxembourg have long-standing economic ties. Major Luxembourg companies such as global satellite leader SES, the world’s largest steel producer ArcelorMittal, or the leading airfreight company have strong relations with Brazil, some dating back to the 1920s. Today, Luxembourg is, amongst other activities, also a key location in Europe for the automotive component industry, a prime hub for logistics and a leading ICT centre, providing a first-class infrastructure and networks. The diversification of Luxembourg’s economy is also reflected in its financial services sector.
“The growing international focus of Brazilian investors and entrepreneurs interested in investing in Europe as a stable and mature market has put a greater emphasis on finding transparent and complementary wealth management solutions. As such, Luxembourg has built up a unique long-standing expertise in providing compliant tailor-made solutions to international clients with complex multi-jurisdictional issues who wish to develop and transmit their wealth”, Pierre Gramegna said during his speech at the kick-off seminar in São Paulo.
Further to recent international coverage, Mr. Gramegna highlighted Luxembourg’s strong position in favour of transparency in tax matters. Luxembourg is an active and positive supporter of the BEPS (base erosion and profit shifting) discussion on OECD and EU level, which aims at achieving greater fairness in international tax matters.
Moreover, Luxembourg is fully committed to the automatic exchange of information. As of January 2015, Luxembourg will apply the automatic exchange of information based on the EU savings directive and will count among the early adopters of the OECD Common Reporting Standard for Automatic Exchange of Financial Account Information, starting in 2017.
Emerging economies play an increasingly important role in the global economy. As such, Brazil is a key market for the Luxembourg financial centre.
Luxembourg is the second largest investment fund centre in the world and a prime location for wealth management in the Eurozone. It is home to many foreign financial institutions from around the world, including Brazilian banks and fund promoters wishing to diversify their portfolio and to reach out to investors across the globe through their Luxembourg platform. As of today, 32 Brazilian funds are domiciled in Luxembourg with a total AuM of 1.5bn USD. Three of the major Brazilian banks are present in Luxembourg.
For the Luxembourg Stock Exchange (LuxSE), Europe’s primary centre for international bonds, Latin America has been a major market since the 1960s. More than 40,000 securities in 54 currencies are listed on the LuxSE, amongst them 271 from Brazil. 74 Brazilian issuers such as Petrobras, Vale, Odebrecht, Electrobras and a dozen of major Brazilian banks account for 40% of Latin American securities listed and traded in Luxembourg.