Luxembourg as a funds centre is “misunderstood at best, maligned at worst”, according to a speaker at the Association of the Luxembourg Fund Industry (ALFI) Spring Conference.
Thomas Seale, CEO of European Fund Administration and ALFI board member, used his talk to attempt to dispel some of the myths surrounding the jurisdiction.
He rejected the idea that funds domicile in Luxembourg for tax purposes only, and praised its innovative fund structures and “world-class know-how”, adding: “Funds come to Luxembourg even when they don’t need to.”
“While competitive, Luxembourg is far from being a tax paradise for the funds industry,” he said, stressing that it is no easier to avoid taxation in the jurisdiction than anywhere else, because is governed by the same rules as Paris, London, Dublin and many other markets.
Seale’s final myth was that Luxembourg funds only benefit multinational corporations and the rich. He stressed that “funds are good for you”, and that they are an essential part of the global economy, not only in the finance industry.
To sum up, he stated: “Without investment funds the world economy would grind to a halt.”
