Luxembourg, a platform for fund distribution

Luxembourg's fund distribution platform

With a politically and economically stable environment, Luxembourg benefits from an extremely qualified workforce and is historically known for its proactive and flexible role in adoption and implementation of European financial regulations.

Just as Luxembourg is an agile financial marketplace, it is also a highly oriented business one. Luxembourgish government and financial supervisory authorities are known to be facilitators for business development rather than hindrances.

Thanks to a combination of all these elements, Luxembourg sits at the epicentre of cross-border distribution and passporting for UCITs funds which translates into a speedy time to market and the reason why Luxembourg hosts more than 300 ManCos holding a UCITS or AIFM licence, or both.

Fundsquare, a wholly owned subsidiary of the Luxembourg Stock Exchange, is historically known for regulatory reporting services. Currently 100% of regulatory reporting for Luxembourg domiciled funds is managed by Fundsquare. This expertise and long-standing experience has allowed us to establish privileged connections with close to 70 foreign regulators facilitating cross-border distribution. Fundsquare is increasing its accessibility to European NCAs to facilitate AIF/M reporting and passporting thereby replicating this great success outside of Luxembourg.

As Fundsquare is the golden source for fund data for Luxembourg domiciled funds, receiving data directly from the data owners (asset managers, ManCos) or fund administrators, without any intermediation or transformation of the data, we are capable of not only covering regulatory disclosure but also accompanying our clients for publication and information dissemination purposes.

Data is part of our DNA; we have placed an utmost importance on data governance. For us, the best way we can serve our clients is to allow them to maintain control over their processes throughout the funds life cycle via transparent governance and efficient risk mitigation.

How and when asset managers and asset owners’ data is being sent to either the National Competent Authorities or distribution platforms is essential. Through our proprietary tool, FundLifeCycle, clients can make sure that their data and regulatory reporting is compliant with and distributed to financial national and supranational Regulatory Authorities as well as their data and document dissemination that they manage or outsource to third-party service providers.

With a 360-degree vision of their data and document lifecycle, Fundsquare seeks to simplify the data journey for our clients. Currently Fundsquare is serving all Spanish Asset Managers and funds who have an established presence in Luxembourg a who supporting them in their fund registration for passporting to other EU jurisdictions including Spain. It is worth to highlight that of the largest ManCos in Europe who are currently established in Luxembourg, 18% have set-up branches in Spain.

This article was published in the magazine of the Spanish Financial Forum in Luxembourg. October 2021. Number 3.

Originally published on fundsquare.net