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Luxembourg to bolster funds industry
19 December 2013
New Luxembourg coalition government releases programme to enhance the sector
The new Luxembourg coalition government has revealed its
commitment to bolstering the competiveness of the country's
The government wants to make improvements to legal and
regulatory frameworks in financial services.
Marc Saluzzi, chairman of the Association of the Luxembourg
Fund Industry (Alfi), said: "The new government clearly
appreciates the importance of the financial services sector to
the Luxembourg economy and is committed to ensure that it
remains a centre of excellence in financial services, fully
compliant to international standards."
The government said it will not increase subscription tax
and will look at the fiscal regime of investment funds in order
to improve the competitiveness of Luxembourg-based funds.
The government plans to lead promotional efforts to attract
leading private equity funds to Luxembourg and will adopt
measures to attract more front-office functions to Luxembourg,
including the reform of the carried interest taxation
The government also refuses to introduce a financial
transaction tax at EU level.