There is a future for a relationship between London and Luxembourg post-Brexit that builds on the years of partnership between the City and the Grand Duchy – and not on competition between the two financial centres.
That's the view of Francois Pfister, the head of Ogier's Luxembourg office, who has been quoted in a feature by Funds Europe featuring key figures in the Luxembourg funds industry.
Speaking alongside representatives from JP Morgan, Banque de Luxembourg and RBC, Francois gave his view on how the Grand Duchy's relationship with the City can continue and develop post-Brexit.
Ogier remains the only offshore law firm with a presence in Luxembourg – the team was established five years ago and is now led by seven partners focused on investment funds, banking and finance, and corporate law advice.
Funds Europe posed the question – "Luxembourg for Finance has said it intends that Luxembourg will continue to be a partner for UK asset management firms after the UK leaves the EU. How can this be achieved?" – and Francois responded: "There is no doubt that the UK, and London in particular, will remain a global financial centre after Brexit (if it actually happens).
"Luxembourg's focus should not be on competition with the City, but rather continuing to be a privileged partner to our London colleagues in areas where Luxembourg has been traditionally strong and helpful to the City's banking and asset management community.
"Co-operation between the Grand Duchy and the UK in the financial sector has been growing for decades in the fund and asset management services area, in the banking and private wealth sector and in insurance products.
"The focus should not be forcing a choice between Luxembourg or the UK, but rather further developing the existing synergies between the two countries and potentially creating new ones.
"Let's treat the UK not as a competitor, but as one of our biggest clients and help it through the Brexit process.
"We can do this, for example, by defending the delegation model of investment management at EU level, by keeping our borders open to UK citizens and UK companies, by favouring a 'soft' Brexit with mutual recognition of regulatory bodies and processes and avoiding the rise of unnecessary barriers.
"Of course, the 'passport' may disappear and create difficulties for UK-based financial undertakings, but it will do so also for Luxembourg providers and financial players. In my view, it is in the Grand Duchy's self-interest to plead a smooth and soft Brexit outcome."
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