KPMG
Following his move from ALFI to KPMG, AST speaks to Charles Muller about his new role
AST: It’s a fairly new role for you at KPMG – what are your duties currently?
Charles Muller: It is – I had a 1st of December start – but I roughly do the same work I did at ALFI. My aim is to be aware of all regulation, specifically out of Brussels, but all over Europe and globally. Unfortunately, financial regulation is not global.
I give internet presentations to KPMG, and they also take me to their clients. Their clients are asset managers, or sometimes depository banks. I only work for clients, because the service is free of charge for them.
We’ll cover five or six topics in two hours. Their level of understanding changes according to geography; background. If they’re from a well-established EU member state, for example, I can go through things a little faster, but in less developed countries I have to take my time. If I start talking and I see wide-eyed, blank stares I know I have to simplify things!
AST: What’s the line between advising, and selling your own product?
Muller: If we have a solution for one of the regulations I will tell them, but I don’t sell it; that’s not my job. The best way to sell yourself, anyway, is to show competence. ALFI used to push Luxembourg, but I know they have realised it works better if you don’t.
AST: Where do you think growth in Luxembourg is coming from?
Muller: Traditionally, it has been UCITS funds, but now more and more growth is coming from outside the EU.
In Hong Kong, less than 10 per cent of funds are local. 50 per cent are actually from Luxembourg, 15 per cent are from Ireland, and five per cent are from the UK and France. We are trying to attract Hong Kong, Taiwan and Singapore to Luxembourg, while ALFI is trying to break Australia.
AST: What is Luxembourg doing to attract Asian funds?
Muller: When I was in South Korea, I sold Luxembourg to South Korean asset managers so they could trade with Hong Kong. It seems ridiculous; the countries are so close to one another, but they need Luxembourg as an in-between. The ease of UCITS meant it was easier to go to Luxembourg first.
UCITS were released 25 years ago, and Luxembourg was the first to implement it. Now they are the most popular savings product. In the beginning, it was different. In terms of risk adverse UCITS, it used to be government papers, but not any more! There are funds, however, that guarantee your money back.
AST: Which countries are up-and-comers as fund domiciles?
Muller: Malta very much want to establish themselves in the funds market. On my first day with KPMG, I spoke at a conference there, with an audience of 100 - quite a good turnout for Malta. They really tried to make a big event of it, and I can see Malta becoming a potential player in that area.
AST: Who is Luxembourg’s biggest competitor as a funds domicile?
Muller: Ireland. When ALFI were trying to push things through, we would say: “well, Ireland are allowed to do it”, and they would do the same: “Luxembourg are allowed to do this-and-that, so why aren’t we?” So I suppose in that sense it is helpful to have them as a big competitor.
However, I’ve stopped promoting Luxembourg, whereas at ALFI that was my role. It is easier in a way, because I don’t sell just one country. But on the other side of the coin, it is harder because when people ask where to put a certain fund, there are quite a few criteria to consider. And I must say that latest figures show that Ireland is doing very well. There is still a big difference with Luxembourg, but Ireland’s market share is constantly increasing, despite the crisis they have gone through.
