Infrastructures foster fund industry innovation

Luxembourg’s wise strategy to create financial infrastructures and cost mutualization has been key to the country’s competitiveness and success in cross-border fund distribution. In the age of digital transformation, this strategy strengthens its leading position.

As the world’s leading centre for cross-border fund distribution, Luxembourg boasts a unique and highly competitive platform for investment funds.

Integral to its success is a large group of companies that serve the country’s fund industry. These include fund administrators, distributors, law firms, transfer agents, depositary banks, auditors and accountants, as well as consultants and advisors.

In this list we should also include the role that specialised IT and communication firms have played. In particular, one significant but often overlooked factor in the growth and success of this ecosystem is the infrastructure that has grown over many years and which generates economies of scale for the benefit of all actors, especially in information exchange.

An adaptable, efficient fund ecosystem​​​​​​

Luxembourg took the first steps in addressing the need for efficient and cost-effective cross-border information exchange more than twenty years ago with an initiative from ALFI, the Luxembourg fund association, to create a centralising communication agency for investment fund information dissemination. With a focus on industry-wide cost mutualization and industrialisation of data, CCLux was created with the support of the Luxembourg Stock Exchange and commenced with the transmission of NAVs for publication around Europe, as well as certain regulatory reporting to the CSSF and BCL for local funds.

Julien Renkin

Head, Client Solutions & Project Management (Fundsquare)

The key is to provide a frictionless experience between information producers and consumers.

Read the complete article on paperjam.lu

Paperjam, March 2020

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