- MyOfficialStory

Transcription

- MyOfficialStory

ENGLISH VERSION
THE GRAND DUCHY, FROM THE SOURCE
Politics
Association
Gastr
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onom
y
Culture
Shopping
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Mo
Business
yle
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Content
Editorial
5. A unique book to control your
image in all the media
12. Jean-Marie Kreins: Historical
milestones
14. Luxembourg over time
16. Grand Duke Henri: There’s
more to Grand Duke Henri than
just being the sovereign…
18. The Grand-Ducal Family: Give
honour where honour is due
20. Prince Guillaume:
The Hereditary Grand Duke
23. More Monarchy
132. Jean-Noël Lequeue:
Compliance profession at full
stretch
134. Rotary: Hope ahead thanks
to “Espoir en tête”
136. Hockey Club Luxembourg:
On the ball!
137. AERO-SPORT: AERO-SPORT
Luxembourg aviation club
138. Polo Club Luxembourg:
The “Sport of Kings” opens up
to the public
140. House 17: A new Club in
Luxembourg
142. Golf-Club Grand Ducal:
A passion, not a sport
144. Fondation de Luxembourg:
A European gateway to
Philanthropy
146. More Associations
Politics
Gastronomy
Introduction
6. Luxembourg: an international city
Luxembourg in bref
Monarchy
Decision makers interviews,
Straight to the point
and many more…
2
360CrossmediaTV
www.360crossmedia.com
[email protected]
Associations
26. Xavier Bettel: Unswerving
ambition
28. Mark Entin: Luxembourg and
Russia: building on strong ties
for the future
30. Carlo Thelen: Luxembourg: a
new paradigm!
32. P
aul Dühr: A springboard into
Europe’s markets
34. Félix Braz: Reforms on all fronts
36. P
ierre Gramegna:
The renaissance man
38. H
.E.M. Zeng Xianqi: Interview
with H.E. Ambassador of China
in Luxembourg
40. More Politics
Business
46. Funds
70. Private Equity
78. P
rivate Banking
94. I CT
104. Services
118. I ndustry
178. Axa Art: The key role of
insurance in the Luxembourg
Freeport
180. BDO: TAX is in the air
Lifestyle
186. François Valentiny: An eulogy
on departure (and return)
188. FARE S.A.: Luxury Properties
190. PGA Catalunya Resort:
An idyllic residence location,
with golf and Barcelona on the
doorstep
Shopping
194. Windeshausen: Jewellers
from father to son
196. Génaveh: The art of chocolate
150. Daniel Rameau: The gourmet
journey
152. Brasserie Schuman: Encore!
154. Philippe Bridard: The flavours of
“La Bergamote” in Luxembourg
156. Cyril Molard: A restaurant is a
three-part dialogue
158. Christian Bau: Gourmet table
with a style all its own
160. Léa Linster: The Prophet
(outside her own country)
162. Thierry Duhr: As the seasons
pass
164. More restaurants
Culture
168. MUDAM: The contemporary
citadel
170. Grand Ducal Palace: Follow
the guide!
172. Ernster: The spirit of books
174. Mr Hublot: The keys to
international success
176. EWUB: Noblesse oblige
www.luxembourgofficial.com
Chief Editorial Officer: Jérôme Bloch
Conception & Coordination: 360Crossmedia
Artistic Director: Franck Widling
Cover Photo: © 360Crossmedia/M.T.
Print Run: 1 500 copies
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Editorial
Feel free to relax.
A unique book
to control your image
in all the media
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Jérôme Bloch
CEO
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Art de
vivre
5
Introduction
Luxembourg
“The city
manages
to combine
dynamism,
quality of
life and
friendliness”.
An international city
What are your priorities as mayor?
The challenge facing the city can be
summed up in four facts and figures: the city
takes up 2% of the national territory. Half of
this surface is covered with woods and
green spaces. The remaining 1% hosts 20%
of the country’s population and 40% of jobs!
This creates accessibility problems, as the
city concentrates far more jobs than people.
Every morning, more than 100,000 people
make their way into the city. At certain times
of the day, this generates traffic problems.
Projects are underway that will take the
edge off this daily assault: the TRAM, for
example, will make it possible to reduce the
number of buses in the city, but it implies a
reorganisation of public transport. Another
major project concerns the 2004 law that
requires all municipalities to adopt a general
territorial management plan according to
very specific definitions. This will allow some
areas to be redefined. The first vote of the
municipal council on this matter is scheduled for the summer of 2015.
A word about the “Royal
Hamilius”?
I have signed the building permit for the
Royal Hamilius and Lord Norman Foster
was the architect behind this great project
in the heart of the city. Comprised of 70
apartments, offices and shops, it is a land-
6
mark development for Luxembourg City
and is scheduled for completion in 2017.
Furthermore, we are now seeing a drift from
the countryside to the city. People want to
enjoy the superb sports and leisure facilities.
Between the Coque national sports and
leisure centre, the Philharmonic and the
Mudam, we are spoilt for choice in this
respect.
Can you describe Luxembourg’s
real estate fabric?
I must first set the record straight. As mayor,
I do not regulate the market. Luxembourg
has seen its growth driven by its financial
centre over the past few years. This has
brought about a strong economic boom,
and a hike in real estate prices is a natural
consequence. The city projects are almost
exclusively oriented towards providing
affordable housing for its citizens. Several
special development projects (the so-called
PAPs, editor’s note) are in the pipeline that
will see 5000 housing units being created,
in particular in Bel Air, Merl, Limpersberg
and Cessange. The most ambitious project
- the Ban de Gasperich - alone will see 600
homes and many shops and offices spring
up.
What would you say to people who
don’t know Luxembourg City?
It is an international city. 68% of the inhabitants do not hold Luxembourg nationality. If
you compare us with recent events in
Switzerland with the famous ‘vote’, here 155
Lydie Polfer
© DR
Interview with Lydie Polfer, Mayor of
Luxembourg City.
nationalities - 94% European - live side by
side in harmony. The city manages to combine dynamism, quality of life and friendliness. Locals and foreigners come together
to celebrate several times a year: at the
octave, the national holiday or Schuberfouer.
They also mingle on Saturdays at the market. You see a plethora or cultures and hear
a multitude of languages. Building on this
wide variety of cultures and backgrounds,
we have managed to carve out quite a
unique way of life.
information:
www.vdl.lu
www.myofficialstory.com/lydiepolfer
7
© 360Crossmedia.com/J.P.
Luxembourg in brief
Population: Luxembourgers: Foreigners: Minimum Wage: Inflation:
537 000 (1/1/2013)
298 200
238 800
1 874€ (7/2013)
1.04% (10/2013)
(Source: Statec-BCL)
TOP 5 Largest employers
Groupe ArcelorMittal (Industry)
BGL BNP Paribas (Banking)
Groupe Cactus (Department Store)
Groupe Post Luxembourg (Telecom)
Groupe CFL (Rail Transport)
4 Must Know
Figures
The Grand-Duke Henri
www.myofficialstory.com/grandduchenri
www.monarchie.lu
4 600
4 060
3 990
3 990
3 970
(Source: http://www.statistiques.public.lu/)
TOP 5 Banks per country of origin
Germany47
France14
Switzerland11
Italy/ England
9
Sweden8
Pierre Gramegna
Minister of Finance
www.myofficialstory.com/pierregramegna
www.gouvernement.lu
(Source: CSSF 30/11/2013)
Others
Investment Funds
3889
UCITS2484
SIFs1161
Foreign UCIs
244
Net Assets under Management
2083.7€ Billion
Xavier Bettel
Prime Minister and State Minister
www.gouvernement.lu
www.myofficialstory.com/xavierbettel
(Source: CSSF 31/10/2010)
Miscellaneous
Area: 2,586 km2
Official languages: Luxemburgish, French, German
Motto:“we want to remain what we are”
Politics:constitutional monarchy
Head of State:S.A.R. Le Grand-Duc Henri
Internet:.lu
Phone:+352
8
Maggy Nagel
Minister of Culture, Minister of Housing
www.myofficialstory.com/maggynagel
www.gouvernement.lu
9
Noah Etienne Guillaume
Gabriel Matthias
Xavier of Nassau
2007
Gabriel Michael Louis
Ronny of Nassau
2006
Prince Sébastien Henri
Marie Guillaume
of Luxembourg
1992
Tessy Antony
Princess Alexandra
Joséphine Teresa
Charlotte Marie Wilhelmine
of Luxembourg
1991
Prince Louis Xavier Marie
Guillaume of Luxembourg
1986
September 29th, 2006
Guillaume Jean
Joseph Marie
1981
Countess Stéphanie
de Lannoy
Félix Léopold Marie
Guillaume of Luxembourg
1984
October 20th, 2012
September 21st, 2013
Henri Albert Gabriel
Félix Marie Guillaume
10
Claire Margareta
Lademacher
Monarchy
Politics
Business
Associations
Gastronomy
Culture
Lifestyle
Shopping
María Teresa
Mestre y Batista
11
Jean-Marie Kreins
Historical
milestones
Apart from the period from 1795 - when
Luxembourg was conquered by the French
troops of General Jourdan - until the final
act of the Congress of Vienna in 1815, the
geographical area of Luxembourg has always
been identified as a distinct territorial entity.
963
The collapse of the Carolingian empire gave rise
to the great «principalities» in our regions: the
Hainaut as of the 9th century, Flanders, Namur,
Liège and Luxembourg. It was around 963 that
Siegfried, scion of the powerful « Ardennes»
clan, acquired a rocky promontory looming
above a loop of the Alzette river. Close to the
Emperor, Siegfried would later enhance his
possession by installing a market and founding
a church there, thus laying the foundations for
a new sovereignty between the Meuse and
Moselle rivers. At that time, the destiny of the
Luxembourg territory depended on the play
of matrimonial unions and successions. It was
a question of well-considered family ambitions, but also a matter of luck. For the most
ambitious amongst them, the determination to
expand their territory would remain a constant
concern. When the Luxembourg Count Henri
VII ascended to the throne of Germany in 1308,
the House of Luxembourg became an Eastern
power. It would give other three sovereigns to
the German throne: Charles IV, Wenceslas
and Sigismund. Obliged to borrow money to
12
finance their ambitions, they put up their Duchy
as collateral, and it then passed from creditor
to creditor until it was finally purchased in 1441
by the Burgundian Philip the Good. From the
vast Burgundian territory there would survive
the area of the Netherlands, a highly-coveted confederation whence would emerge, in
the 19th century, the contemporary State of
Luxembourg.
The French invasion
The French invaded in 1795 and made the Duchy
a part of France. After the fall of Napoleon I, the
Great Powers granted Luxembourg to William I
of Orange-Nassau at the Congress of Vienna of
1814. They integrated it into the newly-created
Germanic Confederation and made of the
capital a fortress defended by a Prussian garrison. William I sought to join Luxembourg to his
other territories in order to make it the eighteenth
Province of the Netherlands. Following the
Belgian Revolution of 1830, the Great Powers
granted Belgium the status of an independent
and neutral State, and the Walloon part of
Luxembourg was ceded to it. When William I
abdicated in October 1840, his eldest son succeeded him under the name of William II. Eager
to turn Luxembourg into a genuine State, the
new sovereign issued in 1841 a first constitutional text that confirmed the autonomy of the
Grand Duchy vis-à-vis the Netherlands. It was
under the same sovereign that the country in
February 1842 ratified the agreement with the
German Customs Union, an agreement that
was regularly renewed and which permitted the
country’s industrial development and helped
facilitate the passage from the rural activity of
the Ancien Régime towards a highly industrialised economy enhanced by the development
of steelmaking and later of agriculture. It didn’t
take long for this prosperity to draw covetous
attention from various neighbours. In 1866,
the Austro-Prussian war blew the Germanic
Confederation apart. Following the 1866 Treaty
of Prague, Luxembourg regained its sovereignty - which was soon threatened, first by
Napoleon III and then by King of the Belgians
Léopold II, who sought in vain to have it incorporated into Belgium. In order to counter any
further desires of annexation, the European
powers gathered in London in May 1867 and
declared the territory to be perpetually neutral,
following which the fortress was dismantled, the
country demilitarised and the Prussian garrison
evacuated from the city.
The 20th century
Following the First World War, the government
denounced the treaty binding it to the German
Customs Union and signed, in 1922, an economic union agreement with Belgium. Concluded
for a period of fifty years, the treaty went far
beyond the framework of a simple customs
union and established a community of revenues between the two countries for both customs and excises. The relation of forces gave
the leadership to Belgium and, although the
Belgian-Luxembourg Union never gained the
importance acquired long ago by the German
Customs Union, it nevertheless made it possible
to free the national economy from the isolation
to which it had been relegated by the First World
War. During the course of the Second World
War, the Belgian, Dutch and Luxembourg politic leaders in exile in London understood how
close their interests were with one another and,
on 5 September 1944, adopted the agreement
for the Benelux Treaty, regarded by many as
the « matrix » for the later European Union.
«Luxembourg, honest broker of Europe» as
Theodore Roosevelt characterised the Grand
Duchy... Based on the experience acquired
in the previous unions, Luxembourg would
undoubtedly participate prudently, but with a
© 360Crossmedia
Monarchy
growing autonomy, in the development of the
major European worksites, both through the
effective role it received as a result of accession
to the new international institutions and via the
decisive action of several of its top politicians.
The major upheavals were incontestably, firstly,
Luxembourg’s participation in the European
integration, and secondly the fact that the City
of Luxembourg was chosen in July 1952 to
serve as headquarters for the High Authority
of the ECSC. Other Community institutions
- such as the European Court of Justice, the
European Investment Bank, the Court of Audit,
the Office of Statistics, the Office of Publications
and the secretariat of the European Parliament
– would soon establish themselves here as
well. Thus, over the decades, the particularly
favourable economic conditions, the diplomatic alliances with historical partners and the
political adroitness of certain of its leaders have
permitted the country not only to be an active
player in the development of the European
project, but above all, for the first time since its
contemporary resurgence, to emerge from its
long diplomatic reserve to occupy a modest but
real place in the new order of Nations.
information:
Read the long version:
www.myofficialstory.com/jeanmariekreins
13
Monarchy
Luxembourg
over time
X
Century
XIX Century
XX Century
XXI Century
963 1815 1839 1867 1890 1922 1944 1952
Count Siegfried
from the
Ardennes
acquires a small
fort on a site
of a previous
Roman outpost
and names it
“Lucilinburhuc”
The Congress
of Vienna marks
the creation of
an independent
Luxembourg.
The Duchy is
elevated into the
rank of Grand
Duchy
Treaty of
London;
Luxembourg is
split in two
The Grand
Duchy
becomes totally
independent
and “perpetually
neutral and
disarmed”
The crown
passes to the
Duke Adolph
of NassauWeilburg
The BelgianBenelux
Luxembourg
Convention
Economic Union
(UEBL) comes
into effect
Headquarter
of ECSC High
Authority
1958 1977 1984 1986 1992 2000 2002 2007 2014
The European
Investment
Bank
EU Court of
Auditors
The
Luxembourgish
becomes national
language
The People of
Luxembourg
Luxembourg
City: Seat of EU
are awarded
institutions
the International
Charlemagne
Prize
Grand Duke
Jean abdicates
in favour of his
son, Grand
Duke Henri of
Luxembourg
The Euro enters Luxembourg:
into circulation European
Capital
of Culture,
2nd time
1st Oscar in
Luxembourg
for the movie
Mr Hublot
“Luxembourg, honest broker
of Europe”.
Théodore Roosevelt
14
15
Monarchy
Grand Duke Henri
There’s
more to
Grand
Duke Henri
than just
being the
sovereign...
he is a member of the International
Olympic Committee and is involved in
the Charles Darwin Foundation for the
Galapagos Islands. A man of action, the
Grand Duke is also known for his military
commitment. After enrolling at the Royal
Military Academy Sandhurst, he became
an officer and subsequently an honorary
major in the British Parachute Regiment.
As the Commander of the Luxembourg
Army, he is ranked as a General.
rait
Port
16
Globetrotter
Grand Duke Henri is as dynamic as his
country. As well as Luxembourgish, he
is also fluent in French, German, English
and Spanish. He acquired this multilingualism at an early age due to the fact
that he attended secondary school in
Luxembourg and France before going
on to the University of Geneva, where
he gained a degree in political science in
1980. His Royal Highness studied abroad
© Lichfield/Getty Images
When he succeeded his father, Grand Duke
Jean, on 7 October 2000, Grand Duke Henri
promised to use his dynamism and learning
to serve the Grand Duchy.
on many occasions, both in Europe and
overseas. Between 1978 and 1980, he
trained in various companies in the United
States. In his role as Honorary Chairman
of the Board of Economic Development,
which was founded in 1977, he carried
out numerous exploratory trips around
the world promoting the Grand Duchy of
Luxembourg as a place for investment
(1978-2000). He still attaches a lot of
importance to education, and has hon-
orary doctorates from several universities
around the globe.
Man of action
Keen on literature and classical music,
Grand Duke Henri is also a great lover
of sport. Sailing, tennis and hunting are
among his favourite pastimes, and he
loves to practise them. He is patron of
many sporting, cultural, scientific and
economic associations today. Notably,
Devoted father
It was while he was studying in Geneva
that Prince Henri met Miss Maria Teresa
Mestre. They were married on 14 February
1981 at Luxembourg Cathedral. The prince
and new princess of Luxembourg went
on to have four sons [and one daughter]:
Guillaume (heir to the throne since 2000),
Félix, Louis, Alexandra and Sébastien.
Acceding to the throne on 7 October
2000 following the abdication of his father
Jean, Grand Duke Henri is Head of State,
an association patron and a father all at
the same time. The Grand Duke plays a
vital and essential role today. He is considered to be the keystone of the institutional
system. However, he strictly abides by
the maxim that “the sovereign reigns but
does not govern”, which is undoubtedly
the secret of his success.
information:
www.myofficialstory.com/grandduchenri
www.monarchie.lu
17
Monarchy
The Grand-Ducal Family
Give honour where
honour is due
rait
Port
The Grand-Ducal couple
Henri, Grand Duke of Luxembourg and
Grand-Duchess Maria Teresa met at university in Switzerland, where they both studied
Political Science. Born in Cuba to a family of
Spanish origin, Maria Teresa de Mestre emigrated with her family to New York at three
years of age. She later lived in Spain, and then
Geneva. She is a philanthropist who devotes
a great deal of energy to the actions of her
Foundation, always with great discretion. Her
charitable work takes her all over the world,
hand in hand with UNICEF, UNESCO, the
Red Cross and the Anti-Cancer Foundation,
among others. She became engaged to the
Grand Duke three weeks after they graduated
from university, and they were married on 14
February 1981, St Valentine’s Day. Prince
Guillaume was born on 11 November of the
same year. He has three brothers – Félix, Louis
and Sébastien and one sister, Alexandra.
Grand Duke Henri
Born in April 16, 1955 at the Château de
Betzdorf, the Grand-Duke Henri is the son
of the Grand Duke Jean and the GrandDuchess Josephine-Charlotte of Luxembourg
and his accession to the throne dates back to
October 7, 2000. The Grand Duke attended
the University of Geneva where he obtained
18
in 1980 a degree in Political Science and in
1989 he was appointed Honorary Major of
the «Parachute Regiment» (England) after
he enrolled the Royal Military Academy
Sandhurst 1974. The Grand Duke assumes
the patronage of several associations in the
cultural, sport, scientific and civic fields. He
is also interested in literature, classical music
and sports in particular swimming, sailing,
water skiing, tennis, hunting and fishing.
Grand Duke and Grand
Duchess Foundation
On the occasion of the wedding of the royal
couple in 1981, ‘Prince Henri-Princess Maria
Teresa Foundation’ was dedicated to the support of persons with special needs, facilitating their integration into society. As a result of
the accession to the throne of Grand-Duke
Henri and Grand-Duchess Maria Teresa, a
new foundation was born: Grand Duke and
Grand Duchess Foundation. It has therefore expanded the scope of its activities by
supporting people in financial difficulty both
in Luxembourg and in poor regions. The
Foundation can carry out its activities through
tax-deductible donations of private individuals
or institutions.
information:
www.myofficialstory.com/famillegrandducale
www.monarchie.lu
www.fondation-grand-ducale.lu
© DR
Luxembourg Official is exceptionally changing its
structure, to present the Grand-Ducal couple.
19
Monarchy
Prince Guillaume
The Hereditary
Grand Duke
A water sports enthusiast, music lover, pianist
and guitarist, Prince Guillaume has shown a
passion for several activities while serving in
his role as Hereditary Grand Duke.
it
ortra
© 360Crossmedia/M.T.
P
20
A marked interest in
politics and economics
After obtaining his French Baccalaureat
from the Beausoleil Alpine college in
Switzerland in 2001, Prince Guillaume
trained as an officer at Sandhurst Royal
Military Academy in Britain to carry
the rank of Lieutenant Colonel. Prince
Guillaume went on to study international
politics in the UK and France, where
he earned a degree with honours in
Literature and Political Science. During his
spare time, Prince Guillaume enjoys reading autobiographies, treaties or historical
novels in relation to politics, economics
and philosophy.
Official duties
and humanitarian work
Prince Guillaume is committed to promoting the industry and the financial centre
of the Grand Duchy and undertakes economic missions around the world: Russia,
USA, Middle East, China, Sweden,
Turkey, Japan and South Korea. He regularly attends the plenary sessions of the
State Council and is particularly interested
in the social economy and microfinance.
Committed to the poor, he has participated in a military camp in Nepal and
a charitable mission in Aguascalientes,
Mexico. Since 2011, Prince Guillaume
is Honorary President of the Kräibierg
Foundation.
The Royal Wedding
The wedding of Prince Guillaume and
Countess Stéphanie de Lannoy was held
on 20 October 2012 at the Cathédrale
Notre–Dame in Luxembourg. Their marriage was attended, among others, by
foreign monarchs from several countries.
The wedding took place in an atmosphere of national celebration with fireworks, and concerts while a locomotive
travelled through Clause adorned with
giant wedding bands and portraits of the
couple. Late into the night, the people of
Luxembourg were treated to a wonderful romantic evening and the rest of the
world still remembers their big day with
fan pages on the internet, newspaper articles and videos of the ceremony creating
a buzz on the web.
information:
www.myofficialstory.com/famillegrandducale
www.monarchie.lu/fr/famille
21
More Monarchy
Culture has
a bright future
The humanitarian commitment of the Grand-Duchess
www.myofficialstory.com/grande-duchesse
The Grand-Duchess Charlotte
www.myofficialstory.com/grande-duchesse-charlotte
The Grand-Duke Adolphe
www.myofficialstory.com/grand-duc-adolphe
www.monarchie.lu
www.luxembourg.public.lu
Leah,
future
director of the Museum of Modern Arts
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IS COMMITTED TO PROMOTING CULTURE
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23
GOVERNMENT
BETTEL Xavier
Prime Minister, Minister of State
Minister of Communications and Media
Minister of Religious Communities
KERSCH Dan
Minister of the Interior
Minister for the Civil Service and
Administrative Reform
SCHNEIDER Etienne
Deputy Prime Minister
Minister of Economy
Minister of Internal Security
Minister of Defence
CAHEN Corinne
Minister for Family and Integration
Minister in the Greater Region
BRAZ Félix
Minister for Justice
SCHNEIDER Romain
Minister of Social Security
Minister for Cooperation and
Humanitarian Action
Minister for Sports
ETGEN Fernand
Minister for Agriculture, Viticulture
and Consumer Protection
Minister for Relations with Parliament
GRAMEGNA Pierre
Minister of Finance
GIRA Camille
Secretary of State for Sustainable
Development and Infrastructure
HANSEN Marc
Secretary of State for Education,
Childhood and Youth
Secretary of State for Higher
Education and Research
ASSELBORN Jean
Minister of Foreign and European
Affairs
Minister for Immigration and Asylum
SCHMIT Nicolas
Minister of Labour, Employment and
Social and Solidarity Economy
BAUSCH François
Minister of Sustainable Development
and Infrastructure
NAGEL Maggy
Minister of Culture
Minister of Housing
MUTSCH Lydia
Minister of Health
Minister for Equal Opportunities
MEISCH Claude
Minister of Education, Children
and Youth
Minister of Higher Education
and Research
DIESCHBOURG Carole
Minister of the Environment
CLOSENER Francine
Secretary of State for the Economy
State Secretary for Homeland
Security
Secretary of State for Defence
AMBASSADORS
TO LUXEMBOURG
Stefano Maria Cacciaguerra
Ranghieri Italy
Bartosz Jalowiecki Poland
Mark Entin Russian
Carlos Maria De Lojendio Y Pardo
Manuel De Villenas Spain
Urs Hammer Switzerland
Levent Sahinkaya Turkey
Alice Walpole United Kingdom
Robert A. Mandell USA
© DR
Thomas Oberreiter Austria
Thomas Antoine Belgium
Zeng Xianqi China
Guy Yelda France
Christine Glaser Germany
Peadar Carpenter Ireland
Monarchy
Politics
Business
Associations
Gastronomy
Culture
Lifestyle
Shopping
24
25
Politics
Xavier Bettel
rview
Inte
As Prime Minister of Luxembourg,
what are your priorities?
There are many, but they are all related
to one objective: putting this country
on the right track for the future. One of
the main areas we need to focus on is
Luxembourg’s financial situation, which
was increasingly going in the wrong direction. I think the most important thing is to
inform and explain to people the necessity
of the measures we are taking.
What is your analysis of the
current political situation in
Luxembourg?
As you know, I was a member of Parliament
in the majority party for 5 years, then a
member of the opposition for 10 years.
However I must confess that I too was
taken by surprise, as I didn’t expect the
results of last October’s elections.
We are in a phase where it is important that
everyone takes responsibility in the interests of the country, and everyone makes
a joint effort. Now, and for the next few
months, the people of Luxembourg must
stand together.
What, to you, are the three main
qualities of a good politician?
The profile I try to emulate is that of a politician who knows how to listen, who takes
decisions as a consequence of what he
26
has heard, who puts the country’s interests first, and who knows how to explain to
everyone why these decisions have been
taken.
What risks and opportunities
does the country face?
There are risks and opportunities in many
areas, but they are all linked. If we take the
example of banking secrecy, I have continued what my predecessor started. It’s a
significant change, but it’s only the beginning: it’s a new era for the financial markets. In my opinion, the biggest risk is the
fear of change. When I hear the Chinese
banks or Haribo express how pleased
they are to have opened establishments in
Luxembourg, I feel proud. I tell myself that
these transformations of our country are
necessary - we wouldn’t have heard this
kind of message 10 years ago. Nowadays,
these major companies have good reasons to set up business in Luxembourg,
and are right to be proud.
Luxembourg has been prosperous
for a long time because of its
exceptional policies, or because
of its excellence?
I consider the main asset of the financial
market to be the expertise and excellence
of the people who work in this sector in
Luxembourg. However, excellence does
“I don’t care about polls,
the future of the country
is what interests me”.
Xavier Bettel
© 360Crossmedia/M.D.
Unswerving
ambition
not exclude the exceptional. Policies must
not be directed against other countries.
The policies that were in place until now
were certainly open to criticism, even jealousy, but they were still fair and legal. My
aim is not to copy others, as Luxembourg
must retain its values of proximity and
excellence, which is what makes this country so exceptional.
What are your government’s
projects?
The changes that are coming will result
in us losing 1 billion in e-commerce.
However, we have known about this since
2006, which is something I blame the previous government for. Measures should
have been taken a long time ago. However,
Luxembourg will continue to develop on
many levels: firstly public finances, then
education and the diversification of the
economy, but also the law on abortion, or
access to housing for the middle classes.
This is a very important issue, as the real
estate market in Luxembourg must enable young people to buy their first apartment. Young people are one of the most
important objectives for me. Today, 20%
of young people in Luxembourg are unemployed! To sum up, this government will in
no way rest on its laurels, and the autumn
will be very busy. I’ve been watching and
listening for the last few months, and now
I will take decisions, and above all explain
them.
information:
www.myofficialstory.com/xavierbettel
27
Politics
Mark Entin
Luxembourg and
Russia: building
on strong ties
for the future
t
xper
E
28
A presence in Luxembourg
Most people do not realise how much
Russia has contributed to Luxembourg’s
history, culture and independence. “Today
Russia plays an important role in safeguarding this independence,” says Mark Entin,
the ambassador of the Russian Federation
to the Grand Duchy. Russia’s presence
in Luxembourg today encompasses economic, financial, cultural and individualties.
The Russian community in the Grand Duchy
is relatively large at around 1% of the overall
population, mostly young and talented people who make a substantial contribution to
the country’s wealth and wellbeing. Earlier
this year Vnesheconombank, one of the
four largest financial institutions in Russia,
opened for business in Luxembourg,
which Entin says represents a kind of vis-
iting card for the Russian banking system.
Vnesheconombank has also established
an investment foundation in the Grand
Duchy to invest in small and medium-sized
enterprises.
Bright future
Entin argues that the relationship between
the two countries has a bright future.
“Luxembourg has started to deepen the
relationship with countries outside the EU,”
he says. “It has built economic, trade and
financial links with these countries.”Luxembourg’s embassy in Russia plays a
critical part in this process, he says, by
inviting businessmen, investors and other
representatives from the financial world
to meet with their counterparts from the
Grand Duchy. The result is a dynamic process characterised by the initiation of new
common projects and a steady increase in
the volume of investment.
Beyond the headlines
Entin is critical of the role of polemic in
the mass media in shaping perceptions
“Today Russia plays
an important role
in safeguarding this
independence.”
Mark Entin
© DR
Russia’s ambassador to Luxembourg Mark
Entin says the two countries share strong
economic, cultural and financial links, but there
are challenges to overcome to ensure a bright
future for their relationship.
of other countries, noting that some
people are unable to see past sensationalist headlines – a problem that has
affected Russia’s image in recent months.
Nevertheless, he expresses the hope that
the European Union will remain competitive, resolve its problems – some of which
are self-inflicted – and remain a strong
and economically successful partner for
the Russian Federation. Says the ambassador: “Through economic co-operation,
cultural exchanges and scientific projects,
I believe we can overcome the problems
thrown up by the economic crisis and
strengthen societies all over Europe.”
information:
www.myofficialstory.com/markentin
29
Politics
Carlo Thelen
Luxembourg:
a new paradigm!
pert
Ex
30
How would you analyse
the current political and
environmental situation
in Luxembourg?
We have now entered a key phase for the
country’s future: Luxembourg has all the
assets it needs to succeed and now, more
than ever, is the time to focus on our future
development. Take, for example, inter-generational equity. Budget consolidation is
finally receiving the attention it deserves.
And with good reason, the Grand Duchy
has real room for manoeuvre. Public
expenditure currently represents €34,000
per citizen and per year, i.e. double the
European average. Even if we cut this
contribution by 10%, Luxembourg will still
rank among the most generous countries.
As well as the budget, we need to ensure
that other projects are not pushed into
the background. For example, the social
model, housing or even competitiveness.
Budgetary balance is not something that
can be decreed. It is driven by a consistent
socio-economic policy mix. This dynamic
is fuelled by growth, attractiveness and
competitiveness.
What are your priorities
as Director General of the
Chamber of Commerce?
At the end of 2012, together with my predecessor Pierre Gramegna, (now Minister
of Finance, editor’s note), we introduced
the Chamber of Commerce’s 2020 strategy. I am continuing to implement this
strategy with my team. The Chamber aims
to remain the key contact for companies,
professional organisations and the government. Our main objective is defending
companies’ general economic interest,
beyond individual interests. We are maintaining an overall perspective as part of
a long-term approach. We are continuing
to be a critical partner of policies implemented, refraining from personal criticism
at all times and instead supporting our
arguments with facts and addressing the
government as a whole.
What threats and opportunities
are on the horizon?
The financial crisis has changed the paradigm: we no longer have the growth
rates we enjoyed in the past. To make the
Luxembourg model sustainable, we need
to redefine it and target it more effectively.
“Our philosophy
is to do better
with less.”
Carlo Thelen
© 360Crossmedia/C.O.
Carlo Thelen, the new Director General
of Luxembourg’s Chamber of Commerce,
is a qualified economist. Interview.
Our philosophy revolves around doing better with less, to further improve our competitiveness and social cohesion. Having
said this, Luxembourg has many assets.
First and foremost, we need to look after
what exists: by opening up new markets
for our companies, promoting innovation, capitalising on the financial market,
industry, trade and tourism. But we also
need to develop new niches. For example,
the RMB platform, philanthropy, gaming,
cloud computing, eco-technologies and
logistics. We have some great entrepreneurs and start-ups in these fields, creating strong foundations for the future.
What about property?
Corporate property is developing favourably, recording performance above the
European average and very low vacancy
rates. Our financial market also supports
the structuring of property funds and even
“Sharia compliant” funds. Home to more
than 160 nationalities, Luxembourg is a real
cultural crossroads, a laboratory of ideas
and a smaller scale version of Europe.
information:
www.cc.lu
www.carlothelen.lu
www.myofficialstory.com/carlothelen
31
Politics
Paul Dühr
Luxembourg’s ambassador in Paris explains
the strength of Luxembourg’s longstanding
ties with France.
rview
Inte
32
Luxembourg’s Embassy in France
is one of the oldest and most
important diplomatic services.
Why?
France and Luxembourg have a shared
history going back more than a thousand
years, encompassing both friendship and
crisis. France is one of the very first countries inside which Luxembourg opened, as
early as 1867, a resident diplomatic representation. We have been there, without
interruption, ever since. Today more than
33,000 French people live in Luxembourg
and 75,000 more commute into the Grand
Duchy for work every day. This represents
a critical contribution to the development
of Luxembourg’s economy and society.
Luxembourg’s economic players need a
broader geographical scope than the
country’s own limited territory to be able
to grow consistently and sustainably.
France is our second trading partner, after
Germany, today. For this, for our common
history and for the cultural bearing France
has on Luxembourg, our Embassy in Paris
is a very important part of Luxembourg’s
institutional network abroad.
What message do you have for
international businesses
considering a presence in
Luxembourg?
We start out with a beneficial geographical
position that serves as a springboard into
Europe’s markets, enhanced by an extensive motorway network, an international
airport and a network of European railway
links. The Grand Duchy’s economic, political and social stability, as well as the
secure environment for individuals and
property, are also important advantages.
We also offer a legal and fiscal environment characterised by stability but also
responsiveness, as demonstrated by the
administrative simplification procedures
that have been introduced for several
years, particularly through the Guichet
Unique business portal. In addition,
Luxembourg’s quality of life scores highly
in international ranking, including second
place among European cities as classified
by the Financial Times. This all helps the
integration process for international executives, company staff and their families.
What initiatives has the new
government launched to strengthen
economic and commercial ties
between France and Luxembourg?
The Chamber of Commerce and the
© 360Crossmedia/JCC
A springboard into
Europe’s markets
Ministry of Foreign affairs created in
February the position of economic and
commercial attaché at Luxembourg’s
embassy in Paris. Luxembourg companies
interested in entering the French market
will have a partner on the ground to advise
them. The attaché will also help French
companies interested in the Luxembourg
market. There will also be a focus on having a more substantial presence at events
such as MIPIM in Cannes and the Greater
Region Business Day. We want to create
“France and
Luxembourg
have a shared
history going
back more than
a thousand
years.”
Paul Dühr
more opportunities for meetings and
exchanges between French and
Luxembourg partners. Information about
our activities in the economic sphere will
be posted on the embassy’s web site web
(http://paris.mae.lu/fr) and through our
newsletter, which will be launched very
shortly.
information:
http://paris.mae.lu/fr/L-Ambassade
www.myofficialstory.com/paulduhr
33
Politics
Félix Braz
Reforms
on all fronts
“It’s a mistake to
think that only
large countries
have the capacity
and that the
small States
are lagging
behind.”
© DR
Félix Braz
An interview with Félix Braz,
Minister of Justice.
rview
Inte
34
What is your agenda?
We have three main priorities: first of all, an
across-the-board reform of family law. This
includes marriage, with the possibility for
same-sex couples to get married, adoption and the possibility for all married couples to start adoption proceedings,
divorce – where no progress has been
made for 11 years – the intention being to
do away with the notion of fault, except in
severe cases, mainly violence. Another
the linguistic criteria to give the same
chance to all applicants.
reform will cover filiation and yet another
parental authority.
The second priority is the creation of a
prison administration and reform of the
enforcement of sentences. We want to
ease the transition of inmates back into
society after leaving prison and we are
looking to introduce a judge responsible
for the enforcement of sentences or a
panel of three judges. Finally, the third
reform is the introduction of a National
Council of Justice with greater autonomy
in the management of judges and investigating magistrates that is wholly independently of the political power. I am
willing to give up some of my prerogatives,
particularly with regard to appointments
and promotions, if a National Council of
Justice assumes full responsibility for
them.
We are also looking into the possibility of
creating a supreme court in Luxembourg
which would introduce summary reversals
to the administrative system and replace
both the Superior Court and the
Constitutional Court. Control of constitutionality would therefore be delegated to
all judges.
Reform of abortion will soon be tabled.
Abortion will be decriminalised and the
second consultation will no longer be
mandatory. The nationality law will relax
What are the current challenges
brought about by the new
regulations in the field of finance?
Luxembourg’s position is very clear in this
field: we support all progress and actively
participate in discussions within the
OECD. It is essential that all countries
abide by the same rules. By accepting the
automatic exchange of information on savings income from the 1st of January 2015,
Luxembourg has shown that it is not one
of the States standing in the way of
change. Our financial market has been
doing very well without banking secrecy
for a long time thank you and does not
attract clients because of its sovereignty
but because of its competence. The
exchange of information is not a problem
but it can only work if the same rules are
applied to all financial markets.
Data protection is a hot topic today
At national level this is a matter for Xavier
Bettel in his capacity as Minister of Media.
On the other hand, as Minister of Justice,
I deal with these issues at European level
in the JHA Council (Justice and Home
Affairs). A directive and a regulation are
currently under discussion and have been
a long time coming, given that the last data
protection text dates back to 1995. This is
a text that is progressing at snail’s pace.
Some countries want to set up protection
mechanisms at national level. Others,
such as Luxembourg, believe that the only
possible solution is a European mechanism that can be rolled out across all 28
countries. We cannot have 28 Googles or
28 Facebooks in Europe. Companies must
choose a home country where the competent national authority - the CNPD (the
National Data Protection Commission) in
Luxembourg - will be equipped to oversee
the application of the rules. It’s a mistake
to think that only the large countries have
the capacity and that the small States are
lagging behind.
You had the pleasure of meeting
Robert Badinter?
I had the honour and the privilege of meeting him at his home. He really is a fascinating character. I am familiar with his causes,
whether the abolition of the death penalty
or his efforts on the international stage. I
am a firm believer in European construction and listening to him makes you doubly
convinced. He makes it sound so inevitable, with fair and lucid arguments. I visited
him in my position as Minister and have
taken on board his arguments. We discussed the European Public Prosecutor
and a European training institute for judges
in European law. Mr Badinter argues that
the European Union and peace on our
continent are not only a matter for the big
States. He also thought that Luxembourg
should remain the European capital of
justice.
information:
www.myofficialstory.com/felixbraz
www.gouvernement.lu
35
Politics
Pierre Gramegna
The renaissance man
Minister of Finance
since 2013, he
has been working
to promote the
internationalisation
of local companies.
He could have pursued his career as an
ambassador, travelling all over the world.
Instead, Pierre Gramegna chose to diversify
his career, while maintaining his passion for
commitment and openness.
rait
© Ministry of Finance
Port
36
A diplomatic career
Pierre Gramegna studied both law and
economics, viewing them as complementary fields. He became a diplomat at the
age of 25, setting out to defend
Luxembourg’s interests in Paris, San
Francisco and Tokyo where he serve as
Ambassador. He promoted the Grand
Duchy wherever he went, enjoying a few
pleasant surprises along the way: few
career paths provide an opportunity to
meet Sharon Stone in the heart of a
Californian forest, or to play tennis with the
Emperor and Empress of Japan. His best
memory is the Grand Duke’s State visit to
Japan in 1999, marking the first State visit
to the country joined by a major economic
delegation. The initiative included some
exceptional moments.
Diplomacy rimes with economy
During the Kyoto Conference in 1997,
Luxembourg held the European presidency. As the spokesman for this presidency, Pierre Gramegna, remembers
having slept for just four hours in four days,
but he did have the satisfaction of contributing towards an agreement, unlike the
fiasco of Copenhagen. An admirer of per-
formers who devote themselves entirely to
their art, he later decided to leave the diplomatic world to play an active role in the
economic development of a rapidly growing Grand Duchy. As the Minister of
Finance since 2013, he has been working
to promote the internationalisation of local
companies, attract investors and take part
in ongoing legislative changes.
Return to his roots
A great lover of black-and-white photography – he develops his own photos – Pierre
Gramegna looks fondly at the Luxembourg
that welcomed his grandfather and which
he ended up representing, defending and
promoting it all over the world. In the next
few years, he could see himself anywhere
he can continue to defend the Grand
Duchy’s interests using his method: a mixture of commitment and diplomacy,
guided by passion. His travels have left
him with the conviction that no other country in the world has achieved such harmony in diversity. As for the more distant
future, he can imagine being a more frequent visitor to Italy, the country of his
roots, while appreciating to work on
Kirchberg, the heart of contemporary
architecture and of highly productive
enterprises, which also happens to be the
headquarter of the Chamber of
Commerce…
information:
www.myofficialstory.com/pierregramegna
37
Politics
H.E.M. Zeng Xianqi
After completing several missions in Africa,
the Ambassador is personally delighted
to have been posted to Luxembourg.
view
r
Inte
38
Your Excellency, could you tell us
about bilateral relations between
China and Luxembourg?
This country lives up to the slogan of the
Luxembourg pavilion at the Shanghai
World Expo in 2010: small and beautiful.
Many Chinese people know Luxembourg
for its steel industry and finance sectors.
Friendly exchanges between China and
Luxembourg date back a very long way
and our countries cooperate in many sectors, notably finance and steel.
Furthermore, the first foreign branch
opened by the Bank of China was in the
Grand Duchy, and more are set to follow
very soon. In terms of the volume of bilateral trade, transactions amounted to 1.9
billion dollars last year and there are still
many more potential opportunities in
China. The Chinese authorities also place
great importance on the quality of the
economy and on improving the population’s well-being, as well as on developing
technology to boost efficiency in relation
to energy and the environment. China is a
land of ancient traditions that are still very
much alive today. The country has
launched an initiative to create a prosperous and harmonious world, inspired by the
philosophy of Confucius, who believed
that difference could coexist in peace and
harmony. We apply this both within China
and internationally.
What are your views on student exchanges
between the two countries and on the
learning of Chinese in Luxembourg?
Since Grand Duke Henri’s visit to China in
2006, many agreements have been
signed, in particular relating to exchanges
between our universities. Every year,
Chinese universities welcome students
from all over the world, while the University
of Luxembourg receives around fifty young
people from China. With regard to the
uptake of Chinese language courses
among young people in Luxembourg, this
phenomenon is increasing. A Chinese language and cultural centre opened in
Luxembourg last year, with strong support
from the Luxembourg government. The
centre is considering the introduction of a
“China is a land of
ancient traditions
that are still very
much alive today.”
People’s Republic of
China Ambassado
“Confucius” course. The project is supported by the Chinese government which
is supplying more teaching resources,
such as textbooks. The Chinese government therefore plans to provide even more
support in the near future.
Where you advise us to visit if we were
planning a two-week trip to China?
My country is very big so I’ll simply give
you my opinion. If culture and history are
your main interests, I would recommend
the historic cities of Beijing, Luoyang, Xi’an
and Nanjing. If you would like to visit some
modern cities, I would suggest China’s
coastal region and Shanghai, Zhejiang,
Jiangsu, Fujin and Guangdong. To explore
inland areas, you should travel to the western region of China (Gansu, Ningxia and
Qinghai). I also recommend that you visit
the region of Tibet, a superb place. But I
can assure you that two weeks is not
enough, you need to allow at least two
months! From north to south, it takes four
or five hours to fly across the country.
© 360Crossmedia/J.Mura
Interview with H.E.
Ambassador of
China in Luxembourg
information:
www.myofficialstory.com/zengxianqi
www.lu.china-embassy.org/fra
39
More Politics
Corinne Cahen
Minister for Family and Integration
Minister in the Greater Region
Prime Minister from 1995 to 2013
www.myofficialstory.com/
jeanclaudejuncker
Denis Robert
Ambassador of Canada
to Luxembourg and Belgium
www.gouvernement.lu
www.mae.lu
www.luxembourg.public.lu/fr/politique
denisrobert
40
© Shutterstock
© 360Crossmedia/DR
corinnecahen
Jean-Claude
Juncker
41
TOP TEN COMPANIES
BY EMPLOYEES*
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
ArcelorMittal Group: 4 600
BGL BNP Paribas: 4 060
Cactus Group: 3 990
Post Luxembourg Group: 3 990
CFL Group: 3 970
Goodyear Dunlop Tires Operations SA: 3 250
Dussmann Luxembourg Group: 3 110
Luxair SA: 2 390
PwC Group: 2 280
Luxembourg Hospital: 2 130
Monarchy
Politics
Business
Associations
Gastronomy
Culture
Lifestyle
Shopping
© DR
*source: http://www.statistiques.public.lu/
44
45
Business
Funds
48. J oëlle Hauser: Looking over the Great
Wall of China since 1980
50. Serge Krancenblum, SGG Group CEO:
Still delivering made to measure
services, 60 years on
52. Sandra Müller : LuxReal
54. C
learstream: A global actor, “made in
Luxembourg”
56. Linklaters LLP, KNEIP:
Luxembourg: Land of empowerment
58. Revel Wood: Using global reach to build
long-term relationships
60. Luc Rasschaert (IWI): A hands-on man
62. Steve David: 10 years of growth in
Luxembourg
64. F
rédéric Perard: The importance of
being in China
66. Pierre Alexandre Delagardelle (PHD):
The financial performance of
responsible investments
68. Keith Burman: Navigating the new
marketing landscape under AIFMD
of Funds
ACOLIN www.myofficialstory.com/viktorfischer
Adepa www.myofficialstory.com/adepa
Alter domus www.myofficialstory.com/alterdomus
ALFI www.myofficialstory.com/alfi
Atlantic Fund Services www.myofficialstory.com/romanlewszyk
Banque Centrale www.myofficialstory.com/BCL
BNP Paribas Securities Services www.myofficialstory.com/BPSS
Bonn Steichen and Partners www.myofficialstory.com/bsp
Clifford Chance www.myofficialstory.com/cliffordchance
Confluence www.myofficialstory.com/confluence
Crédit Suisse Luxembourg www.myofficialstory.com/creditsuisse
CSSF www.myofficialstory.com/CSSF
Custom house www.myofficialstory.com/customhousegroup
Funds Europe www.myofficialstory.com/fundseurope
Fundsquare www.myofficialstory.com/fundsquare
HSBC www.myofficialstory.com/hsbc
KBL www.myofficialstory.com/kbl
Kneip www.myofficialstory.com/kneip
Linklaters www.myofficialstory.com/linklaters
Loyens & Loeff www.myofficialstory.com/loyensloeff
MDO www.myofficialstory.com/MDO
MEBS www.myofficialstory.com/Mebs
Multifonds www.myofficialstory.com/multifonds
Northern Trust www.myofficialstory.com/northerntrust
Sanne Group www.myofficialstory.com/sannegroup
Schroders www.myofficialstory.com/schroders
SGG www.myofficialstory.com/sgg
SS&C GlobeOp www.myofficialstory.com/sscglobeop
RBS www.myofficialstory.com/RBS
UBS www.myofficialstory.com/ubs
VBS www.myofficialstory.com/vbs
Etc…
46
47
Funds
Business
Joëlle Hauser
Looking over
the Great Wall
of China since 1980
“Luxembourg
funds form a
cross-cultural
bridge to facilitate
investment
co-operation
between China
and Europe.”
Joëlle Hauser
t
r
Expe
48
Is your firm increasing its
activities in China?
Our firm is already very active in the
People’s Republic of China. Clifford
Chance’s roots go back to 1802, with our
Hong Kong office opening in the early
eighties. At the time, our finance practice was driving the firm’s international
expansion, exporting English law financing to upcoming financial centres in Asia.
China continues to be one of our key focal
points, which we currently cover via offices
in Hong Kong, Beijing and Shanghai. We
have thus been looking over the Great Wall
of China for over 30 years.
We are actively developing our relationship
with our Chinese clients with respect to
both Chinese outbound investments into
Europe and European inbound investments into China. On the outbound side,
our team recently advised a Chinese policy bank on setting up the first Chinese
sovereign wealth fund in Europe to make
private equity investments in Central and
Eastern Europe. This fund was one of
Luxembourg’s first AIFM compliant funds.
On the inbound side, we are seeing major
fund promoters setting up investment
schemes that invest in China under the
QFII or RQFII regimes.
How do Chinese clients perceive Luxembourg?
PRC managers and investors are very
interested by Luxembourg. Recent marketing efforts have put Luxembourg on the
map within the Chinese business community, and my Chinese partners and I experience a general awareness and curiosity
about our country.
In recent years, Chinese banks have set
up in Luxembourg. This development
has been followed with great interest by
the asset management community. We
note that they tend to consider Europe
as a single market and Luxembourg as
their gateway into this market. Funds
such as this sovereign wealth fund form
a cross-cultural bridge to facilitate investment co-operation between China and
Europe.
© 360Crossmedia/S.M.
An interview with Joëlle Hauser, Head of the
Investment Funds Department at Clifford
Chance Luxembourg.
What is your agenda for the future?
We must now build on the general awareness and curiosity by informing the Chinese
business community about Luxembourg.
This year is the Chinese year of the horse,
and just as a horse symbolises travel, we
will be reaching out, visiting our Chinese
clients and continuing to build mutual
understanding. The future of investment
management lies in tailor-made interdisciplinary and cross-border structures. We
must offer products that appeal on both
sides: on the one hand solid from a legal
and tax perspective, but on the other hand
also understandable and appealing from a
Chinese perspective. With our dedicated
funds teams, I am confident that we have
the appropriate tools to continue building
this bridge.
information:
www.myofficialstory.com/joellehauser
49
Funds
Business
Serge Krancenblum, SGG Group CEO
Still delivering made
to measure services,
60 years on
view
nter
I
Video
50
After 60 years, what is the
DNA of SGG Group?
It is a combination of two things: entrepreneurship and being a “people business”.
Our new motto, “We support your ambitions”, illustrates this perfectly. We constantly keep in mind that our clients are
people with very successful and complex
businesses. They come to us for optimal performance, and our teams must
be able to meet those expectations. This
was already true back in 1953, when SGG
Group was created as a very small domiciliation and administration department of
Kredietbank. It was true in 1998 when we
became a subsidiary of a leading global
audit firm, later when we were acquired by
the Oppenheim family, and still today after
our management buy-out in 2010. What
has changed, and radically, is the scale
and complexity of the corporate and fund
services work we do.
How have the needs of
your international clients
evolved over six decades?
Right from the start, they have always
been seeking a reliable partner that delivers made-to-measure solutions. However,
the fact that today their business are now
global makes our task much more complex. Much of our work involves multi-jurisdictional implementation, so our experts
need to keep up to date with a vast array
of laws, regulations and compliance procedures in countries throughout the world.
Typically, a client of 1953 was dealing with
one, perhaps two, at most three countries,
and the paperwork was a very small fraction of what it is today.
What is your vision for the
future of SGG Group?
I have a very clear vision of our business
and its future, and I know where I want the
company to go. We have two major goals.
“I have a very clear
vision of our business
and its future.”
Serge Krancenblum
First, SGG Group must maintain its focus
to reinforce its status of an employer of
choice. Achieving the strong growth we
seek is possible only by hiring the best
talents in our industry. We have a long
track record of focusing on keeping the
company strong. For example, when our
owner Oppenheim ran into difficulties, we
took immediate action by putting in place
a management buy-out. Today we benefit
from the support of our major shareholder,
Cobepa. Our second goal is to stay in
sync with our international clients, and not
just to keep up with but to anticipate their
fast-changing needs. Traditional organisational approaches no longer meet today’s
requirements – instead of just management, success now demands leadership.
© 360Crossmedia/C.O
In 1953 the company that is now known as
SGG Group started life as the domiciliation
and administration department of
Kredietbank. It still provides clients with
customised solutions, though their scale and
complexity has changed beyond measure,
says group CEO Serge Krancenblum.
information:
www.myofficialstory.com/sergekrancenblum
www.sgg.lu/en
51
Funds
Business
Sandra Müller
LuxReal
w
ervie
Int
Can you present LuxReal
in a few words?
LuxReal-Real Estate Association of
Luxembourg a.s.b.l. is the platform to connect Real Estate Professionals on a national
and international level in Luxembourg. The
Association holds FORUMs on industry
trends, establishes working groups and
maintains national and international contacts for the exchange of information,
knowledge and experience. This not-forprofit organisation represents the common
interests of the members at corporate and
political level.
What is the DNA of Luxembourg’s
real estate market?
Luxembourg is the country par excellence
where testimonies to the past meet the
avant-garde spirit of the contemporary.
Around 80% of the office stock is located
in Luxembourg City and is predominantly
composed of grade A space. Prices are
driven by demand but also by well-considered procedures for releasing development land. The risk-return-profile for
Real Estate investments is appealing and
in particular properties in central locations
with secured long lease terms are highly
52
sought after by investors. The strength of
the financial sector adds impetus to the
Real Estate market. It is the largest contributor to the Luxembourg economy.
Together with the European institutions
this sector shows the constant demand
for office space, leading to low average
vacancy rates and stable rental levels in
Luxembourg City.
What can Luxembourg offer
to international investors ?
Luxembourg presents a number of excellent development opportunities. A prime
example is the mixed-use redevelopment of Royal Hamilius, located right in
the heart of the Central Business District
(CBD). The city expands strategically to
the east with the Plateau de Kirchberg and
to the southwest with the Central Station
District, the Porte de Hollerich and the
Ban de Gasperich. To meet the needs of
its continuously expanding population,
Luxembourg also gives preferential support to the construction of housing and the
improvement of its infrastructure.
The alternative sector
Luxembourg was a frontrunner in fully
transposing the AIFMD and has seized
this opportunity to strengthen its competitiveness as a first-class international
financial centre for both the management
and the structuring of alternative funds.
Furthermore, the revamping of the lim-
“Luxembourg is building
an excellent platform
for future growth.”
Sandra Müller
ited partnership regime and the carried
interest regime contained in the new law
is expected to generate considerable
interest among promoters, investors and
fund managers. The AIFM Act creates a
new European playing field for cross-border distribution and authorized managers
are benefitting from a passport. Thus, the
AIFMD may also herald the beginning of a
new era of increased cross-border competition in the industry due to the EU-wide
passport that will be available for EU
AIFMs to manage and market AIFs across
the EU. Given the longstanding, leading position of Luxembourg in traditional
funds, the AIFMD offers a great opportunity to boost the Real Estate segment
while also forming an EU hub and centre of
excellence for alternative investment funds
and their managers. Luxembourg starts in
European pole position and is best placed
to meet the regulatory challenge and turn
it into a new opportunity by leveraging on
its extensive expertise.
information:
www.myofficialstory.com/sandramuller
www.luxreal.lu
© 360Crossmedia
An interview of Sandra Müller, President
of the LuxReal-Real Estate Association of
Luxembourg a.s.b.l.
53
Funds
Business
Clearstream
A global actor,
“made in
Luxembourg”
ny
mpa
Co
Clearstream in short
Initially Cedel, the company was founded
in Luxembourg in 1970 by 66 financial
establishments from eleven different
countries. It merged with Deutsche Börse
Clearing in 2000 to become Clearstream.
The company employs approximately
1,600 specialists throughout the world,
1,000 of whom are based in the Grand
Duchy. Initially dedicated to euro-bonds,
Clearstream’s core business has evolved
to include holding shares, funds and structured products. Its clients call on its services to reduce their costs and risks. A
“Global player” in its original market,
Clearstream will be an integral part of the
first global stock exchange at present
being negotiated between its parent company Deutsche Börse and NYSE Euronext.
An anchor point
Today, Clearstream proudly proclaims its
54
Grand Duchy origins. Willingly engaging in
partnerships – with the Central Bank of
Luxembourg creating LuxCSD to prepare
for Luxembourg’s future – Cleastream’s
field of action is increasing. Its post-trade
business is above all a global network of
channels permitting the transfer of securities and used to connect banks and stock
exchanges to a central depositary. Its network has a presence in 52 countries; it
holds over 11 billion of assets on deposit
and is one of the world’s four largest suppliers of guarantee management services.
Clearstream has offices in Frankfurt,
London, Cork, Prague, New York, Dubai,
Hong Kong, Tokyo and a branch in
Singapore, but its headquarters is historically located in Luxembourg.
Social responsibility
Clearstream wishes to remain a prophet in
its own country through the specific
actions it conducts oriented towards local
society and culture. For example, “Private
Art Kirchberg”, which other major actors in
Luxembourg’s economy such as BGL,
DBL, Allen&Overy and Kneip have joined,
and which consists of arranging to share
private collections with art enthusiasts and
© Clearstream
Proud of its roots in the Grand Duchy and with
a strong international presence, the European
leader in post-trade services, Clearstream,
receives Luxembourg Official.
other interested parties. In the context of
the company’s social responsibility, a
“Social Day” has been organised for the
last five years ... Throughout the year, the
company is the driving force behind a
number of events: Sponsor of the Jazz
Rally and an educational grant for the
Edmond Israël Foundation.
d’infos :
www.myofficialstory.com/clearstream
www.clearstream.com
55
Funds
Business
Linklaters LLP, KNEIP
Luxembourg:
Land of
empowerment
t
xper
E
56
The minister next door
Luxembourg is a European and global
business capital unlike any other – and it’s
not just that a firm’s offices may overlook
a 16th century fortress or an idyllic river
valley, or that more than a dozen languages may be spoken on a daily basis
between the firm’s employees. The size of
the country and its eponymous capital,
together with a national commitment to its
traditions and history, bring people of
authority and influence within close reach.
Government ministers, regulatory officials
and corporate CEOs are all readily accessible in a way they would never be in
London or Paris. European institutions,
too, from the EU Court of Justice and
Court of Auditors to departments of the
European Commission and the headquarters of the European Investment Bank, are
dotted around Luxembourg’s Kirchberg
plateau, testimony to the grand duchy’s
longstanding commitment to European
co-operation and integration.
environment in which Luxembourg operates is in flux, but the country has long
demonstrated a talent for reacting dynamically to changes elsewhere. A central part
of that is a readiness to accept individuals
without concern for their background and
to put individual interests aside for the progress of all.
information:
www.myofficialstory.com/bobkneip
“Work-life
balance is firmly
enshrined in the
culture and is
reflected in the
country’s broad
range of leisure
activities,
from golf and
shopping
to restaurants
and nightlife.”
A revolving door
Luxembourg’s European vocation is just
one facet of a broader openness to the
outside world, a revolving door through
which the grand duchy carves out a place
in a globalised world while welcoming and
absorbing people and businesses from
abroad. The absence of barriers to outsiders and the embrace of diversity in all its
aspects are a key strength of the country.
They create an environment that draws the
best and the brightest from all over the
world and offer the opportunity to build
fascinating and challenging careers.
Logically enough, Luxembourg’s international community provide its most enthusiastic ambassadors.
Keeping a balance
One of the qualities that make Luxembourg
so successful as a business centre, paradoxically, is the fact that business is not its
be-all and end-all. Work-life balance is
firmly enshrined in the culture and is
reflected in the country’s broad range of
© DR
Luxembourg’s readiness to accept and absorb
people of disparate cultures and backgrounds
has proved a critical asset in attracting talent
from all over the world and harnessing it for the
common benefit.
leisure activities, from golf and shopping
to restaurants and nightlife. Culture, always
an important aspect of Luxembourg’s
national make-up, has been enhanced by
the growth of the country’s university over
the past two decades, bringing an infusion
of talent and energy in everything from
music to the visual arts. It’s also brought a
breath of fresh air, comprising entrepreneurship, innovation and discovery, to the
grand duchy’s economic life. The global
Freddy Brausch,
Managing Partner, Linklaters LLP
Bob Kneip,
CEO, KNEIP
57
Funds
Business
Using global reach
to build long-term
relationships
How Luxembourg and RBS are both
responding to new opportunites from Asia, by
Revel Wood, CEO of RBS Luxembourg.
t
xper
E
Responding to new opportunities
Luxembourg has become the European
home for international asset managers and
has learnt to adapt its services to cater for
the demands of clients originating from
diverse cultures around the world. Uniquely
situated within the EU, the Grand Duchy
has successfully positioned itself as a significant trading partner not just with the rest
of Europe and the US, but also with Asia.
Luxembourg has now become a significant
European hub for renminbi (RMB) deposits
and assets under management. Three of
China’s largest banks have even made the
Grand Duchy their preferred choice for their
European headquarters, says RBS
Luxembourg CEO Revel Wood.
RBS – continued commitment to
Luxembourg
RBS was one of the first pioneers to recognise the opportunities for independent
management company services in
58
Luxembourg presented by the UCITS III
Directive, establishing RBS (Luxembourg)
S.A. in 2004. A decade later, RBS
Luxembourg is a key part of the Luxembourg
fabric and a leader in the fund governance
sector, with a strong focus on protecting its
clients’ interests and brand integrity through
robust corporate governance. RBS
Luxembourg has continued to significantly
invest in risk and compliance systems and
in local market expertise to strengthen its
culture of strong corporate governance.
RBS Luxembourg now has over €22 billion
in assets under management across 200
UCITS and non-UCITS sub-funds and is
part of one of the UK’s largest banks. RBS
employs 120,000 people worldwide and
has an extensive global country network
with a strong presence in 10 countries
across Asia Pacific. With a significant history in the region dating back over 100
years in many countries, its deep expertise
and on-the-ground experts enable RBS to
offer unique and innovative solutions in the
Asia Pacific region. RBS is at the forefront
of the internationalisation of the RMB.
Through its operations in China, Hong
Kong and Singapore, RBS offer a full range
of onshore and offshore RMB services
across transaction services, foreign
exchange and capital markets. RBS
Singapore is a member of the local RMB
clearing house, enabling it to provide more
competitive RMB services. This capability
gives RBS an advantage as Singapore is
now the world’s largest offshore RMB
clearing centre after Hong Kong1. Today,
RBS Luxembourg is seeing significant
increase in demand for its management
company services as a result of increasing
regulatory focus on governance under
UCITS (Circular 12/546) and AIFMD. This is
especially the case from Asian Asset
Managers looking for a strong European
partner with a global presence and the
backing of a major financial institution.
Financial services – reversing
traditional trading flows
For centuries, traders using the old spice
and silk routes brought raw materials from
Asia into Europe, paving the way for the
mass importation of finished goods from
China and other Asian manufacturing centres. Within the Financial Services industry,
the reverse has been the case during
recent decades, with investment products
“manufactured” in Europe being distributed
back into Asia, as demonstrated by the
success of cross-border UCITS Funds in
the region. An interesting new development
is that Asian Asset Managers (particularly
the Chinese) are increasingly “manufacturing” their financial products in Asia and distributing them to European investors either
through fund platforms, via joint venture
initiatives or by leveraging their own newly
established network of banks in Europe.
Many such Asset Managers have chosen
© 360Crossmedia
Revel Wood
“Three of China’s largest banks
have even made the Grand
Duchy their preferred choice for
their European headquarters.”
Revel Wood, RBS Luxembourg
Luxembourg as their European hub for its
AAA rating, central location, multilingual
workforce, and deep expertise in cross-border distribution. RBS Luxembourg is ideally
positioned to service the needs of these
new “traders” with the strength of our
global brand, our strong balance sheet,
deep expertise and robust operating
model, says Revel Wood. The independent
management company as a delegate of the
Board of Directors plays an essential role in
the day-to-day monitoring and governance
of an investment fund. We act as the eyes
and ears of the fund sponsor often located
far away and we provide them with a connection to the local service providers and
to best business practices. As a sign of the
times, we now have mandarin-speaking
staff in our Luxembourg office.
1. RMB Tracker April 2014, SWIFT
information:
www.myofficialstory.com/revelwood
www.rbs.com
59
Funds
Business
Luc Rasschaert (IWI)
A hands-on
man
After a career at KBC, Dexia Asset
Management and Belfius Insurance, Luc
Rasschaert has just been appointed at the
beginning of september the CEO of IWI
International Wealth Insurer. Interview.
What is your analysis of current
life insurance market?
Over the last 20 years Luxembourg has
developed a unique expertise in life insurance under the Free Service Provision.
Today it is a changing sector. To ensure a
prosperous future, it should reach maturity
60
“Contracts need
to be creative,
customized
and with a high
added value.”
© 360Crossmedia/M.M.
rt
Expe
You have just been appointed CEO
of IWI. What are your priorities?
As a member of the Board of the company
for 7 years, I have endorsed and supported
the current strategy. As a reminder, IWI has
become a recognized player in the area of
Wealth Insurance. My mission is to continue
with this plan. My primary responsibility is
to bolster our efficiency to offset the impact
of new regulations and to meet the high
demands of a discerning clientele. This
involves three main priorities: 1. Developing
new partnerships. 2. Investing in the skills
of our teams. 3. Expanding the account
management, which consists in following
each partner with a dedicated team of specialists.
Luc Rasschaert
by establishing a strong, sustainable
framework for skills. This implies a sufficient
number of players with a local decision-making centre who are able to invest in development and innovation. The regulator,
politicians and local actors must join forces
to seize this unique opportunity. The job is
to consolidate Luxembourg’s economic
plan for the coming decades.
And what will be the next step as
far as IWI is concerned?
Internally, once the account management
is well in place, we will proceed to management accountability that stimulates
entrepreneurship and the empowerment
of teams. Everyone wins: we identify
opportunities for our partners while increasing the operational efficiency of our
business.
The needs of our partners and their customers are constantly changing. We must
cultivate our capacity for growth and the
excellence of our services in order to provide solutions in line with their expectations. IWI has always positioned itself as an
orchestrator of skills. Contracts need to be
creative, customized and with a high added
value. Our added value is the support and
enhancement of synergies within the
framework of this approach using legal, tax
and financial skills at the same time. We
work together with the client’s advisors
and mobilise expertise, internal or external,
with the fulfilment of goals and satisfaction
of customer needs as our driving force.
information:
www.myofficialstory.com/lucrasschaert
61
Funds
Business
Steve David
10 years of growth
in Luxembourg
view
nter
I
62
You’re celebrating 10 years in
Luxembourg. What’s your view of
the last decade?
In the beginning, it was a simple project as
we started up in business without any clients. The basis of the company was to find
a “tax transparent pooling” solution for a
multinational, but in 2004 nothing had
been signed. In brief, the platform enables
pension funds across the world to combine their assets in a Luxembourg fund,
meaning they can achieve significant
economies of scale in terms of asset management, while continuing to benefit from
double taxation treaties in their country of
origin. It was a success. Since then, the
product has not only been used by multinationals but also by ‘traditional’ asset
managers. Secondly, Northern Trust
group clients who had Luxembourg funds
joined us, which was the start of our regular organic growth. Whilst no institution
was immune to the effects of the 2008
crisis, the impact to Northern Trust was
tempered by the fact that we have always
been very careful in selecting clients we
want to work with and who want to work
with us, and in the types of products we
offer and support. Our approach to management and administration is one of prudence, diligence and client service. In the
years that followed, having established our
identity in the region, we decided that it
was time to expand. In January 2012, we
had 52 employees in the Grand Duchy. We
will have 150 by the end of the year. Our
assets under administration have more
than doubled over the same period.
What lessons have you taken
from those years of growth?
In our industry, everyone claims to listen to
their clients, but in reality, clients often
have a different opinion on the matter.
Northern Trust was founded in 1889 as a
private bank and so listening carefully to
clients and managing risks is in the company’s DNA, and in my eyes is the key to
our success. Our relationships are genuine partnerships, which enable us to
deliver an impeccable service through a
single local contact, backed by the global
strength of our growing organisation.
How do you see the future of
Northern Trust in Luxembourg?
We celebrated our 10th anniversary in
“Our approach to
management and
administration is one
of prudence, diligence
and client service.”
Steve David
© 360Crossmedia
An interview with Steve David, Country Head
of Northern Trust Luxembourg.
Luxembourg and we see significant
opportunity. Our growth continues and we
constantly evaluate the marketplace for
new opportunities.
By the end of the year we are moving into
our new offices in Findel, which will house
150 employees, with room to accommodate further expansion. Our Luxembourg
management company is becoming AIFM
compliant and we will of course also be
providing depositary banking services
under AIFMD.
information:
www.northerntrust.com
www.myofficialstory.com/stevedavid
63
Funds
Business
Frédéric Perard
The importance of
being in China
Frédéric Perard, head of BNP Paribas
Securities Services in Luxembourg,
rview
Inte
explains how the organisation is
developing its presence in China
and the opportunities and threats posed
by its emergence on the global stage.
“China represents one of
the key areas of focus of the
BNP Paribas Securities Services
“Ambitions 2016” plan.”
Frédéric Perard
64
What does the Chinese market
represent for a global
organisation like BNP Paribas
Securities Services?
It is a critical market for development at
the heart of Asia, and one where we are
investing substantial resources, as befits
one of the key areas of focus of the BNP
Paribas Securities Services “Ambitions
2016” plan.
Our group has had a presence in China
since 1860, when we opened an office in
Shanghai. The Hong Kong office opened
in the 1950s, since when our business
has started to accelerate. Today we have
around 2,000 people split between Hong
Kong, Shanghai and Beijing, where we
opened a representative office in 2010.
Our presence is set to expand further
given the development of fund business
in the Chinese market. When UCITS
invest in China, a local presence is preferable for optimum protection of its
assets – and also to match up to our
competitors, who are also there on the
ground.
How do you build up your
relationships with your Chinese
partners?
It helps that BNP Paribas Securities
Services’ business in the Asia-Pacific
region is headed by a Chinese national,
Lawrence Au. Our client service experts
are for the most part local people or at
least speak Mandarin and Cantonese.
Our priority is to immerse ourselves in the
culture – we have special training for that.
On the other hand, a growing number of
Chinese professionals are studying in the
US or in Europe – they benefit from a kind
of dual culture, which helps us to communicate in English.
But aside from the human relationships,
the most important thing is to help our
clients to grasp the benefits of
Luxembourg and its financial industry. For
this reason we offer educational trips – in
2010, 40 senior Chinese managers from
the banking and insurance sectors took
part in the first Sino Euro Asset
Management Forum for Chinese Senior
Executives, which took place in
Luxembourg and in Paris. The second
edition was organised from May 19 to 23
this year, again in partnership with EY.
How do you see financial
relations developing between
China and Europe over the
coming years?
I see both opportunities and threats!
Opportunities first: Chinese asset managers want to sell their expertise and are
creating UCITS in Europe for distribution
throughout the world. The trend began in
2008 through subsidiaries based in Hong
Kong, although for a time is was dampened by the financial crisis.
We are now seeing a new wave of asset
managers seeking RQFII [Renminbi
Qualified Foreign Institutional Investor]
scheme quotas to distribute products in
China and benefit from the emergence of
the country’s middle classes.
As for the risks, they lie mostly in China’s
economic firepower and its ability to buy
companies all over Europe. One could
realistically imagine a Chinese bank
acquiring service providers to make itself
one of the world’s biggest custodians. To
sum up, everyone wants to be Asia’s
funds champion, but to achieve this,
UCITS and Luxembourg will need to follow an ambitious strategy.
Watch the video
information:
www.myofficialstory.com/fredericperard
www.securities.bnpparibas.com
65
Funds
Business
Pierre Alexandre Delagardelle (PHD)
The financial
performance
of responsible
investments
t
xper
E
Ethical financial services industry
Ethical issues in the financial services industry affect everyone, because even if you
don’t work in the field, you’re a consumer of
the services. The industry itself is quite large.
It encompasses banks, securities firms,
insurance companies, mutual fund organizations, investment banks, pensions funds,
mortgage lenders, any company doing business in the financial arena.
Environmental sector
In the environmental sector, investment
funds have long since diversified to meet
demand for specific strategies such as
“green energy” or “carbon efficient”. There
are now many years of practical experience
demonstrating that “investing ethically” does
66
Pierre Alexandre Delagardelle
not mean that we have to sacrifice investment performance. Companies that improve
their corporate social responsibility and sustainability may perform more profitably in the
long run. Green and ethical investment funds
can give investors the chance to get involved
with emerging social and environmental
investment themes at an early stage, before
many conventional investment funds have
identified the investment opportunity. This
happened with environmental technologies
such as solar power and fuel cells.
Corporate social responsibility
(CSR)
CSR is the continuing commitment by business to behave ethically and contribute to
economic development while improving the
quality of life of the workforce and their families as well as of the local community and
society at large. Different organisations have
written different definitions - although there
is considerable common ground between
them. The right definition is that CSR is about
how companies and/or investment funds
manage the business processes to produce
© 360crossmedia/C.O.
In an economy built around the human person,
decisions should be made responsibly by those
persons, with in view the common good. The
economic interaction of persons is what is
called a market. The market is therefore a form
of expression of society.
“Companies that
improve their corporate
social responsibility
and sustainability may
perform more profitably
in the long run.”
an overall positive impact on society. The
World Business Council for Sustainable
Development used the following definition:
“Corporate Social Responsibility is the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of
the workforce and their families as well as of
the local community and society at large”.
While ethical or confessional investing, or
what is now more commonly known as
“socially responsible investing”, may have
been born in faith institutions, current investment vehicles have grown beyond the universe of religious investors to include
like-minded mainstream institutional investors who recognize the moral and ethical
repercussions of their financial decisions. As
part of this ethical economic paradigm, confessional and ethical investment funds are
expected to operate within such an objective
function and framework to establish the perfect balance between financial operations
and social objectives (as a morally identified
objective function).
information:
www.myofficialstory.com/pierrealexandredelagardelle
www.delagardelle-law.com
67
Funds
Business
Keith Burman
Since the Alternative Investment Fund
Managers Directive (“AIFMD”) entered into
force on 21 July 2013, most of the non-UCITS
industry in Luxembourg has been focussed on
getting authorised as an Alternative Investment
Fund Manager (“AIFM”) in the one-year “grace”
period for existing managers. Now that
is almost over, thoughts are turning to how
AIFMD’s marketing provisions will work
across the EEA.
rt
Expe
The Current Status
The CSSF confirmed recently that 33
AIFMs are now “on the list”, 28 are
“approved subject to documentation” and
a total of 200 authorisation files have been
received. This means that Luxembourg is
a significant AIFM centre, with almost as
many authorised AIFMs as London (+/-250
applications received to date).
Marketing Options
Luxembourg is the European leader in the
68
“UCITS” fund arena, with the highest proportion of cross-border registrations in EU
countries and across the world.
The distribution of more sophisticated
Alternative Funds (e.g. Hedge Funds,
Private Equity and Real Estate Funds) to
Professional Investors has always been
more challenging and has been achieved
through a patchwork of methods across
Europe, relying on domestic rules in each
country which govern (and/or restrict) the
sale of such fund products (the National
Private Placement Rules or “NPPRs”).
AIFMD now offers EU-based AIF funds the
passport route to EU Member States, similar to UCITS.
The Immediate Future
The core questions Managers should be
asking themselves at this stage should be
– What tools do I need? Who can I rely on
to be my guide? Where can I find a decent
pith helmet and compass?
Whilst there is much potential for increased
“While there have
already been huge
efforts to become
AIFMD compliant,
the challenge is
not yet over.”
Keith Burman
Partner ManagementPlus Group
cross-border distribution and thus
increased capital raising, the passport and
private placement routes still contain significant challenges and require Managers
to fully consider their distribution strategies, which channels and partners they
want or need to use on a market by market
basis and to act well before needing to.
The Markets
Managers should prioritise which EU markets to distribute in, and assess the costs
and the local requirements versus how
much capital they expect to raise, to narrow the number of markets to initially operate in until fund sizes are sufficiently large
enough to sustain wider marketing efforts.
Please see our website for a more in-depth
version of this article.
information:
© DR
Navigating
the new marketing
landscape under
AIFMD
www.mplgroup.com
www.myofficialstory.com/keithburman
69
Business
Private Equity
72. J érôme Wittamer: Private Equity in
Luxembourg, a new wave of growth
74. T
hree questions for Jean-Marc Goy
76. Paul Junck: Luxembourg a domicile of
choice for Private Equity
of Private Equity
AKUO www.myofficialstory.com/akuo
Arendt & Medernach www.myofficialstory.com/arendt
Backer & Mckenzie www.myofficialstory.com/bakermckenzie
BDO www.myofficialstory.com/BDO
Clifford Chance www.myofficialstory.com/cliffordchance
EY www.myofficialstory.com/anjagrenner
Genii www.myofficialstory.com/Genii
GGM Venture Capital www.myofficialstory.com/GGM
Hogan Lovells www.myofficialstory.com/hoganlovells
IDI Emerging Markets www.myofficialstory.com/julienkinic
ING www.myofficialstory.com/ING
Invest Industrial www.myofficialstory.com/investindustrial
KPMG www.myofficialstory.com/kpmg
Linklaters www.myofficialstory.com/linklaters
LPEA www.myofficialstory.com/pauljunck
Luxembourg Investment Solutions www.myofficialstory.com/lis
Mangrove capital partners www.myofficialstory.com/mangrove
Ogier www.myofficialstory.com/ogier
OPF www.myofficialstory.com/opf
PwC www.myofficialstory.com/pwc
Sanne Group www.myofficialstory.com/sannegroup
SGG www.myofficialstory.com/sgg
Wildgen www.myofficialstory.com/wildgen
Etc…
70
71
Private Equity
Business
Private Equity
in Luxembourg,
a new wave
of growth
The Managing Partner of Genii Investment
Management, Genii Capital’s sister company,
has been appointed Chairman of the
Luxembourg Private Equity & Venture Capital
Association. Interview.
rview
Inte
72
What are your priorities as the
new Chairman of the LPEA?
The current economic situation presents
opportunities that we can only take advantage of by coming together and communicating more and better. Both the
management and the executive committee
of the LPEA are therefore focusing their
efforts on the key area of strengthening dialogue and improving coordination. Firstly
among our members, then with the government, ministries and promotion agencies,
and finally with other associations, actors in
the real economy and our foreign colleagues. The Luxembourg platform that
serves Private Equity is already outstanding, but there is room to make it even better!
To achieve this, the government and the
business community have to be able to lis-
ten to each other without preconceptions
and tell it how it is at the same time as
remaining constructive at all times. The
LPEA has just appointed a marketing officer
to boost our involvement, and to enhance
the excellent work of our technical committees we are going to increase both the
number of roadshows held internationally
and the frequency, quality and circulation of
our publications.
What are the major trends at the
moment?
Before going into technical details, I’d like
to point out the significant positive and key
impact that private equity and venture capital players have on job creation in Europe
and Luxembourg. In fact, most internet
stars like Skype and Spotify were financed
by VCs. In terms of the impact in
Luxembourg, regardless of investments,
the business has a three-layer structure,
namely the manager, the funds and the
transaction layer ensuring that Private
Equity operations are tax neutral. Without
this third layer from which our country ben-
“The priority
is to strengthen
dialogue
at all levels.”
Jérôme Wittamer
efits, investors would be taxed two to three
times on the same income! Luxembourg is
therefore an important player in this market
and is growing in the Private Equity funds
sector due, in particular, to the special limited partnership, a unique English-style limited partnership solution located on the
continent and therefore onshore, providing
an alternative to private equity funds located
offshore. When it comes to managers, we
have to make further progress, particularly
by creating competitive conditions, both in
terms of regulations and tax. However the
new trend at the moment is the emergence
of a fourth layer between the first and second layers called the AIFM (the alternative
investment fund manager created by the
European directive of the same name). This
includes several important roles such as
portfolio management, risk management
and compliance. What is new is that a number of foreign managers are moving their
AIFM to Luxembourg, either to swell their
existing teams or set up new ones. We
aren’t seeing entire management teams
landing in Luxembourg quite yet, but things
are moving in the right direction and a lot of
players will be surprised at just how much
© 360Crossmedia/B.J.
Jérôme Wittamer
the environment will have changed in five
years’ time. This is especially likely since the
OECD’s BEPS (base erosion and profit
shifting) initiative will force companies to
take up a position.
Few words about training?
The LPEA is currently working on establishing a partnership with a major market player
in order to formalise the skills required in the
field. The objective is clear, namely to raise
the general level of understanding of Private
Equity in order to enable professionals to
deliver a top quality client experience and
enable the country to make the most of the
opportunities ahead. We are in need of
highly skilled personnel. For example, the
development of AIFMs is the reason for the
growing demand for skilled profiles like
compliance officers and risk managers.
People who opt to go down this career path
and want to excel through their perfect
knowledge of the roles of Private Equity and
Venture Capital managers have nothing to
fear!
information:
www.myofficialstory.com/jeromewittamer
73
Private Equity
Business
Jean-Marc Goy
Three questions
for Jean-Marc Goy
rview
Inte
74
What were the important dates on
the agenda for 2013 in relation to
the financial sector in Luxembourg?
The one event that comes to my mind
immediately first and foremost as the main
event in 2013, which is not to be missed
under no circumstances, is the Annual
Conference of the International Organization
of Securities Commissions (IOSCO). Today,
IOSCO is recognized as the international
standard setter for securities markets. Its
membership regulates more than 95% of
the world’s securities markets and it is the
primary international cooperative forum for
securities market regulatory agencies. The
Commission de Surveillance du Secteur
Financier (CSSF) is proud to be a member
of IOSCO since 1991. This is the first time
ever that the IOSCO Annual Conference will
take place in Luxembourg. We expect
between 600 and 850 participants for this
event, which will be a unique opportunity to
meet and interact with decision takers of the
financial sector and with representatives of
supervisory authorities from over 110 jurisdictions from all over the world. The event
took place from 15 to 19 September 2013
and will be open to the public on the afternoon of 18 September and on 19 September
2013. More information can be found under
www.iosco2013.lu
What are the challenges and
opportunities for the asset
management sector in
Luxembourg?
The Alternative Investment Fund Managers
Directive (AIFMD) appears to be a text
implying both challenges and opportunities.
As this directive contains a number of
detailed requirements, the industry will be
faced with the challenge of complying at all
times with the new rules once they enter into
force. At the same time, since the AIFMD is
also introducing a passport similar to the
passport for undertakings for collective
investment in transferable securities
(UCITS), the industry is hopeful to repeat the
success which Luxembourg had in the field
of UCITS, where Luxembourg is today the
leading financial centre, in particular regarding cross-border distribution of UCITS. Mr
Luc Frieden, Luxembourg’s Finance
Minister, has repeatedly stressed that the
implementation of the AIFMD is a priority for
our government and that Luxembourg
strives to be among the first Member States
of the European Union (EU) to implement
this directive.
“The implementation
of the AIFMD
is a priority for
our government.”
Jean-Marc Goy
© DR
Un entretien avec Jean-Marc Goy, Counsel
for International Affairs de la Commission de
Surveillance du Secteur Financier (CSSF).
What are the challenges for the
supervisory authorities of the
financial sector?
Over the last years, the regulation and the
supervision of the financial sector has
become more and more international, the
aim being a more convergent and harmonised approach from supervisory authorities
in applying rules that are fundamentally the
same in the major financial centres as far as
possible. In parallel, the role of international
standard setting bodies such as IOSCO, the
Basel Committee on Banking Supervision
(BCBS), the Financial Stability Board (FSB)
and of the EU authorities such as the
European Securities and Markets Authorits
(ESMA), the European Banking Authority
(EBA), the European Insurance and
Occupational Pensions Authority (EIOPA)
has increased. This trend will continue in the
future, as is illustrated among others by the
initiative of the European Commission in view
of a banking union with a single supervisory
mechanism (SSM) for banks in the euro area.
The challenge for national competent authorities is to make every necessary effort to
ensure that their views are taken into due
consideration. This is particularly true for
supervisory authorities from smaller countries with a well developed financial sector.
WATCH
THE
INTERVIEW
information:
www.cssf.lu
www.myofficialstory.com/jeanmarcgoy
75
Private Equity
Business
Paul Junck
Luxembourg a
domicile of choice
for Private Equity
w
ervie
Int
76
Can you describe the Private
Equity landscape in luxembourg?
Nine out of ten of the world’s biggest fund
managers are operating out of
Luxembourg. The transaction layer has
historically been the stronghold of the sector but this is changing rapidly as we
attract more and more middle office and
front office activities here in Luxembourg.
The market size is around 200 billion euros
of assets under management accross
three layers: 1. the general partner, who is
managing an investment fund 2. the fund
that receives investments, typically from
outside investors that would then deploy
the funds into the portfolio. In the third
layer - the transaction layer - these funds
are invested via SPVs into these individual
portfolio companies. More of less 60 private equity houses are present today but
this is only an intermediate step in what we
see is the next wave of opportunities for
Private Equity in Luxembourg.
Which new opportunities do you
identify?
PE is a growth industry in Europe and the
government has identified it as such.
Luxembourg has created three new instruments to help it grow. Firstly we implemented the new European AIFMD directive
last year and we were one of the first movers to do that. Secondly, we have created
limited partnerships in Luxembourg, which
is a tool offering tax neutrality, transparency, flexibility and tailored terms to investors. It is the defacto standard for
structuring a private equity fund in the
Anglo Saxon world. Thirdly, we have created a special tax regime for “carried interest” which is the performance fee that
fund managers get for outstanding performance of their fund portfolio.Luxembourg
introduced this specific taxation to make it
attractive for certain individuals to
relocate.
Why is Luxembourg a domicile of
choice?
Efficiency is a key objective to strive for in
any operation but particularly in private
equity which is obviously by nature a
cross-border business. Having one dom-
“Efficiency is a key
objective to strive
for particularly
in Private Equity.”
© 360Crossmedia/L.D.
An interview of Paul Junck, Managing
Director of the Luxembourg Private Equity
Association.
Paul Junck
icile of choice that combines a number of
layers that are required certainly has an
efficiency impact in the positive sense and
as a practitioner. It makes things a lot easier whether it is in setting up your fund
structures, communicating with your reg-
ulatory authorities, or whether its in dealing
with specialised law firms.
information:
www.myofficialstory.com/pauljunck
www.lpea.lu
77
Business
Private Banking
80. Simon Bodjanski (CITCO): Be distinct or
extinct…
82. B
anque Havilland: A new breed of
private bank
86. S
andrine de Vuyst: A paradigm shift in
private banking
88. M
arc Ambroisien: Luxembourg as
“Architect and Integrator”
90. Ming Gao, ICBC: ICBC sets strategy for
European growth
of Private Banking
Banque de Luxembourg www.banquedeluxembourg.com
BGL BNP Paribas www.bgl.lu
Cardif Lux Vie www.myofficialstory.com/cardifluxvie
Centuria Capital Luxembourg www.centuria-capital.lu
Citibank www.myofficialstory.com/citi
Foyer www.myofficialstory.com/foyer
Fuchs et Associés www.fuchsfin.com
HSBC www.hsbc.lu
Ig Markets Luxembourg www.ig.com/lu
IWI www.myofficialstory.com/IWI
Lalux www.myofficialstory.com/lalux
Lombard International Assurance S.A www.lombard.lu
Nordea Bank S.A. www.nordea.lu
Opexia PSF S.A www.opexia.lu
Pictet & Cie Europe S.A www.pictet.com
Société Européenne de Banque www.seb.lu
Sqope www.sqope.lu
Standard Chartered www.myofficialstory.com/standardchartered
VP Bank www.vpbank.lu
Etc…
78
79
Private Banking
Business
Simon Bodjanski (CITCO)
© Shutterstock
Be distinct or
extinct ...
Private banking in Luxembourg is at a turning
point in its history, one that may prove brutal
for those who refuse change, but beneficial
for others.
rt
Expe
80
Challenging times
For Luxembourg, the current crisis and the
challenges that it implies is above all an
opportunity to be seized: it is an opportunity
to switch to an increasingly proactive
approach in a changing financial world. It is
a chance to embrace exciting global competition, where only those who strive for excellence and deliver innovative offers can hope
to make it to the top. The appointment of
Giuseppe Gianpietro as Managing Director
and Head of the Corporate & Financial
Engineering department of Société
Européenne de Banque illustrates this
dynamic. Previously employed by Intesa
Sanpaolo within the Corporate & Investment
Banking division in Milan, he supports the
CEO (Mr Bus) in creating synergies that
stimulate cooperation between private bankers and those of the group’s Corporate &
Investment Banking at international level. The
creation of the “Global Innovation Network”
also fosters exchanges between specialists
from different backgrounds, their brief being
to propose the blueprints for the bank’s
future activities.
The human interface
The specific nature of the Private Banking
industry is that it is hinged entirely around the
client. However, the interface between the
client and the financial products is also
human. It takes the form of the private banker.
Switzerland was the first to scout for talent
with training courses such as the International
Certified Wealth Manager. Other financial
markets quickly followed suit. The PBGL, in
cooperation with the LSF, are gearing up to
make up for lost time. This is a strategy shift,
as today’s private bankers need more vital
and more transversal skills than their predecessors. In addition to a highly developed
relational intelligence, they must be capable
of doing the groundwork for all the specialists
who will devise the ideal solution for the client. Indeed, the location of these experts
becomes a secondary concern: the client
wants the best solutions and expects the
bank to mobilise the best talents of its group,
whether they are based in Luxembourg or in
another country.
The new business model
The new architecture will be open and modular: targeting a clientele of wealthy international
businessmen, it will allow private bankers to
make the most of their unique vision of the
private and corporate heritage of the clients
with whom they have succeeded in building a
relationship of trust. The future lies in cooperation between experts inside and outside the
banking group, hence the importance of an
effective orchestration of the players, under the
guidance of the all-seeing conductor.
information:
www.myofficialstory.com/seb
81
Private Banking
Business
Banque Havilland
A new
breed of
private bank
© 360Crossmedia/M.S
Venetia Lean and Jean-François Willems say
Luxembourg is the perfect environment to enable
a bank like Havilland to go from strength to
strength.
82
83
Private Banking
Business
© 360Crossmedia/M.S
Freeport and the Fondation Patrimoniale.
All this is making Luxembourg a viable
option for Ultra High Net Worth people. We
feel we have unearthed a hidden gem.
rview
Inte
What are the values of your
organisation?
Venetia Lean: Our values are focused
around the idea of providing safety and
security for our clients’ wealth and a strong
emphasis on family. These values really
come from my family background and the
career of my father who has worked
incredibly hard from a very young age and
has managed to protect what he has built
over the last 50 years.
When my father was very young he inherited a scrap metal yard from his father, sold
it and started buying and investing in properties. This was the start of a career that
spanned Canada, Asia, the Middle East,
Europe, UK and Africa and many different
areas of business. He owned a port in
Canada, a forestry business in Gabon always investing in opportunities that the
economic environment at the time offered.
More recently and as the family has
grown – there are eight children, hence
the eight dots on the logo – he wanted to
create a legacy for his family. The idea
was that this legacy conveys the values
that have been important to him throughout his life on a professional and a personal level.
How did he create this legacy?
Venetia Lean: The first step was
84
Blackfish Capital Management, an investment company established in 2006 specialising in hedge funds focused around
investment themes where the family had
a strong competence such as natural
resources, and distressed debt. The
vision was simple – to manage money the
same way the family had managed their
own, and it proved highly successful.
When the financial crisis erupted a couple
of years later, the way in which the banks
were managed and behaved towards their
clients was of immense concern to my
father.
Money no longer seemed safe in banks,
and the service level was non-existent. He
believed there must be a better way.
Jean-François Willems: So when the
family acquired the bank that is now
Banque Havilland, what they wanted to
offer was a conservative money management style where asset preservation is
key. It was to be a bank that a UHNW person such as our shareholder would want
to bank with for both their personal and
business needs.
How do you view the market in
Luxembourg?
Jean-François Willems: The banking
industry is facing challenges as everyone
learns the lessons of the crisis years. There
is more regulation, and lately there has
been a strong focus on transparency.
However, the changes to banking secrecy
are not impacting our bank or our clients
as the bank is new and has been founded
on a different philosophy.
As a small institution, Banque Havilland
can adapt more rapidly than the bigger
players. We take faster decisions and are
not afraid to be opportunistic. Today several banks that had to be bailed out by their
governments are refocusing on their core
activities and are trying to dispose of some
of their businesses. This is a clear opportunity for us.
Venetia Lean: The business environment
in Luxembourg is perfect for us and the
client base we are targeting. It is politically
stable and AAA-rated. We are very interested in the new initiatives such as the
How is Havilland preparing for the
future?
Jean-François Willems: We have only
one shareholder, and he is extremely ambitious, so we can look ahead with a great
deal of confidence. We have made two
recent acquisitions, in Monaco and
Luxembourg; this is how we aim to achieve
critical mass in the jurisdictions we are targeting. We are also looking at entering new
markets where we don’t yet have a presence, particularly Latin America and the
Middle East.
Venetia Lean: One of the most important
factors for our success lies in the service
we are able to provide to our highly
demanding client base, and this means
having good, professional people on our
team. For talented individuals, Banque
Havilland is a great place to work. It is a
young, dynamic and fast-growing with a
story to write. We are also unusual in that
our headquarters are here in Luxembourg.
Decisions are made here not in some
remote parent company in another part of
the world. It is of utmost importance that
we can adapt quickly and provide a relevant service to our clients in this rapidly
changing world. In many ways my father is
our archetypal client – he’s a successful
entrepreneur. We know that if we can keep
him happy, we can keep most of our clients
happy!
information:
www.myofficialstory.com/banquehavilland
www.banquehavilland.com
85
Private Banking
Business
Sandrine de Vuyst
A paradigm shift
in private banking
iew
terv
In
What is your view of the paradigm
shift affecting private banking in
Luxembourg?
Change brings opportunities. The main
change which we face today is the introduction of the automatic exchange of
information. At ING we saw this coming a
few years ago, so we were ready. Today
people are looking for performance, transparency and tailored services. Most clients
invest on a global scale and rely on the
advice of our experts and want to make
the most of the amazing concentration of
specialists in the Grand Duchy: lawyers,
bankers, tax experts. So I think the paradigm shift is good for Luxembourg.
What opportunities do you see
coming from this?
I see three key opportunities that tie in with
the 3 main segments of our customer
base:
1. First, the local market, where ING now
ranks as a first-rate institution, partly of
86
course due to our partnership with the
Luxembourg Marathon. We are taking on
more and more Luxembourg employees,
and a growing number of Luxembourg
investors are putting their trust in ING.
Private banking services are geared
towards clients who invest at least one
million euros, but ING is a universal bank
that can serve all its customers.
2. Ultra High Net Worth Individuals [i.e.,
clients who invest 5 million euros and have
a minimum net worth of 15 million euros]
have an ideal environment in Luxembourg
to coordinate their international strategy.
ING has for a long time been gearing its
services specifically to cater for the needs
of this type of investor, and in Luxembourg
we can give them what they’re looking for.
3. Finally, we are well placed to offer our
services to other entities of the group
which are unable to offer robust private
banking services, for example in Eastern
Europe. Thanks to the combination of
these three segments, ING’s earnings
from its private banking services increased
in 2013 and its assets under management
remained stable.
How is ING adapting to this
paradigm shift?
I think ING is adapting in two main ways:
Sandrine de Vuyst,
ING Luxembourg
© 360Crossmedia/J.M.
In late 2013 Sandrine de Vuyst was put
in charge of ING’s private banking division.
She gives us her analysis of how the industry
is evolving.
“The ongoing
changes are a
source of strength
for Luxembourg.”
first, we are strengthening our tailored service culture. Of course, we already have a
model framework and portfolio, but our
clients want us to go the extra mile to meet
their requirements on an individual basis.
The second adaptation concerns our
teams. We have restructured the teams to
make them even more efficient. Private
bankers are now distributed around three
market hubs: the local market, our key
markets (France, Belgium and the
Netherlands) and the new markets (Russia,
Italy, etc.). Training is very important at
every stage, because this helps us to keep
in step with the constant changes affecting our industry.
information:
www.myofficialstory.com/sandrinedevuyst
www.ing.lu
87
Private Banking
Business
Marc Ambroisien
Interview with Marc Ambroisien, ViceChairman of the Executive Committee of the
Banque Privée Edmond de Rothschild Europe.
w
ervie
Int
88
How do you see the Private
Bank’s future in Luxembourg?
In the past, Luxembourg relied mainly on
selling financial and tax products. Today,
banks based in Luxembourg are leading
the way in solutions and services. This
transformation is driven, on the one hand,
by changes in the European legal framework, and on the other hand by the
sophistication of high level clients. These
clients want multidisciplinary senior contacts and tools to control and consolidate
their investments. Furthermore, mistrust of
traditional financial investments means
that private equity-type and real estatetype (SIF, SICAR, etc.) investment solutions need to be created. This being the
case, experience in the investment fund
business area is essential in order to be
able to offer this client segment all the
expertise of the institutional world. In my
opinion, Luxembourg’s future lies in
increasing the links between the “Private
Banking” and “Investment Fund” business
areas. It is possible to create dedicated
funds for our clients, go down a board
route by sitting down with them and their
board advisers, use all the control and
reporting tools from the CIU world, and
bring in several internal or external managers. The general approach is to devise the
global investment plan in Luxembourg,
then co-ordinate its implementation by
seeking out the best specialists from all
over the world. Luxembourg can become
a centre of excellence for financial architects and integrators!
What changes need to be made in
order for this development to
happen?
There are three priority fields, starting with
training. There are a number of initiatives
along these lines. Luxembourg has to
attract and retain its talents, but also train
them. Next, it is important to provide a regulatory framework tailored to the business
areas of the future. The “Family Office”
FSP is the finest example of this. Although
the future lies in being able to control a
toolbox of “worldwide” solutions and no
longer solutions focused just on
“Luxembourg”, we need to continue
© DR
Luxembourg
as “Architect
and Integrator”
“Luxembourg has
to attract and retain
its talents, but also
train them.”
Marc Ambroisien
strengthening the arsenal of Luxembourg
solutions. The upcoming arrival of a trust
tailored to Luxembourg would be a perfect
illustration of Luxembourg’s long tradition
of legislative pragmatism. I might perhaps
add a fourth area, which is communication. Professionals and the financial centre
itself should be better known. The knowhow is here, we just need to get the message out.
How is the Private Bank Edmond
de Rothschild Europe adapting to
these developments?
Our bank’s services are divided into three
main activities, namely the private bank,
funds and asset management. In terms of
the private bank, we started the change in
direction to onshoring some years ago,
and have a firm strategy of services to high
level sophisticated clients. Wealth planning
features strongly in the establishment of
dedicated solutions. In the field of funds,
we lead the way when it comes to high
added value sectors such as private equity
and alternative funds. Clearly, this cornerstone business area is a key link in the
bank’s “Private Global Offer” via dedicated
funds. Finally, our asset management
expertise is available to large institutions,
but is primarily aimed at private bank clients. The needs of HNWI and UHNWI clients mean that this business area is
positioned as an essential and dedicated
adviser close to its clients. Our bank was
named “Best Private Bank in Luxembourg”
in the “Euromoney Awards” for our services to the HNW and UHNW client segments, as well as our family office services.
This was only made possible because of
the synergies between our business areas
both within the Bank and the group
Edmond de Rothschild.
information:
www.edmond-de-rothschild.eu
www.myofficialstory.com/marcambroisien
89
Private Banking
Business
Ming Gao, ICBC
ICBC sets
strategy for
European
growth
Ming Gao, chairwoman of ICBC’s
Luxembourg-based European subsidiary,
explains why the Chinese bank chose the
grand duchy for its base and outlines the
group’s strategy for the coming years.
rview
© 360Crossmedia
Inte
90
Why did ICBC select Luxembourg
as a base for operation in Europe?
ICBC opened in the Grand-Duchy in 1998 with
a representative office, which was upgraded
to a branch a year later. In September 2006 the
group set up the ICBC Luxembourg subsidiary
– renamed ICBC Europe in 2011 – with the
goal of further expanding its network using the
EU single banking passport. Soon after, the
bank opened branches simultaneously in
Paris, Amsterdam, Brussels, Milan and
Madrid; Warsaw and Barcelona followed a
year later. ICBC chose Luxembourg for its
regional headquarters because after having
been active in the country for more than 15
years, we find it offers an attractive legal frame-
91
Private Banking
What are the core elements of your
growth strategy? What is your
vision for the future?
We will continue to develop our existing com-
Comparing with other banks here,
what advantages does ICBC
(Europe) offer?
First is the strength and growing profile of the
© 360Crossmedia
of their various banking licences, local business resources and a centralised business
processing function. As the regional headquarters, we act as a management centre
and middle/back office facility for our
branches around Europe. Last year we
established credit examination, parameter
and financial management centres in
Luxembourg. We plan to consolidate all the
financial reporting to the Luxembourg regulator and our head office, the IT system and
network management within ICBC Europe
this year or next. Beside the centralised processing business, we have three business
centres in private banking, investment banking and global cash management, which
support and guiding the various underlying
branches in these new business areas.
mercial banking activities such as trade
finance, project finance and bilateral and syndicated loans, but we are diversifying our
range of services into areas including investment banking, private banking and asset
management, cross-border renminbi business and global cash management. Fortune
500 companies have a strong footprint in
China, and an increasing number of European
companies are growing there too. The number of merger and acquisition deals between
European and Chinese groups is growing,
and most of the Chinese clients coming to
Europe are major clients of ICBC at home; we
will provide advisory services and tailored
financial solutions to help them complete the
deals irrespective of whether they are buyers
or sellers. As regards the private banking
business, as European institutional investors
and high net worth individuals increasingly
seek RMB-denominated products and
investment products focusing o China, we
are planning to launch an asset management
company to distribute RMB funds through
our European network to meet those clients’
needs. As China’s largest bank we offer a
trade and investment bridge between the
country and Europe. We attach great importance to local relationships and expertise, and
are actively developing our customer base
among clients from both regions. Our goal is
to be the prime choice of bank for companies
and institutions doing business with China or
in need of RMB solutions.
“ICBC has 4.89 million
corporate clients and around
422 million retail clients.”
Ming Gao
work and business environment with political
and social stability, a well-regulated financial
industry, a skilled multilingual and multicultural
workforce in the sector, an advantageous tax
regime, and a convenient geographic location.
Not least, Luxembourg is one of the few
remaining European countries with an AAA
sovereign debt rating from all the major agencies. So far ICBC Europe and its branches
have found operating from a base here highly
satisfactory.
How do you manage effectively all
your branches around Europe?
ICBC (Europe) and its branches benefit from
a single management and operating team
while sharing with each other the advantages
92
Business
ICBC Group in the global marketplace. ICBC
is the world’s largest bank in terms of total
assets, core capital, customer deposits and
profits, with 4.8 million corporate clients and
around 422 million retail clients, served
through China’s largest network comprising
17,245 branches and offices across the country’s urban areas. As China progressively
integrates with the global economy, our internationalization strategy has chalked up
remarkable achievements over the past 20
years; our overseas network now encompasses nearly 400 institutions in 40 countries.
All this adds to our resources and competitiveness as we explore opportunities for
development in Europe. Secondly, we benefit
from the constant growth in mutual trade and
investment. Europe is China’s largest trading
partner, and the country is in turn the second
largest trading partner of the European Union.
The expansion of business relationships
offers unprecedented opportunities to
develop both traditional commercial banking
business and new areas such as investment
banking and private banking. The third factor
is internationalisation of the renminbi, whose
acceleration will bring huge new opportunities for overseas business development for
ICBC as the world’s largest bank in RMB
business. In recent years, we have increasing
demand for RMB products from both corporate and individual European clients, and our
financial strength and capabilities will increase
further our competitiveness in the provision of
customised products and solutions.
information:
www.myofficialstory.com/minggao
www.icbc.com.cn
93
Business
ICT
96. Stéphane Boudon: Luxembourg and
quantum computing
98. Amazon.com: From garage sales to
global power
100. ICT in Luxembourg: Seizing the post2015 opportunities
102. Victor Buck Services: Documents in
every form
of ICT
Amazon www.myofficialstory.com/amazon
Altran www.myofficialstory.com/altran
Comarch www.myofficialstory.com/comarch
CTG www.myofficialstory.com/ctg
EBRC www.myofficialstory.com/EBRC
EuroDNS www.myofficialstory.com/eurodns
EY www.myofficialstory.com/ey
IBM www.myofficialstory.com/ibm
Intrasoft www.myofficialstory.com/intrasoft
iTunes www.myofficialstory.com/itunes
Kabam www.myofficialstory.com/kabam
Logica www.myofficialstory.com/logica
Microsoft www.myofficialstory.com/microsoft
Millicom www.myofficialstory.com/millicom
Paypal www.myofficialstory.com/paypal
Post www.myofficialstory.com/post
Profidata www.myofficialstory.com/profidata
Rocket internet www.myofficialstory.com/rocketinternet
SES www.myofficialstory.com/SES
Siemens www.myofficialstory.com/siemens
Skype www.myofficialstory.com/skype
Tango www.myofficialstory.com/tango
Telindus www.myofficialstory.com/telindus
Tudor www.myofficialstory.com/tudor
Etc…
94
95
ICT
Business
Stéphane Boudon
Stéphane Boudon, CEO of Luxembourg’s
Akuo Investment Management, answers our
questions about the future of Luxembourg.
rait
Port
You travel and you invest around
the world. How do you see the
future of Luxembourg?
In my view, a country the size of
Luxembourg should focus on innovative
industries with high added value and
strong market potential, for example
“quantum computing”. One has to hurry,
but this is what may become the strength
of the Grand Duchy.
Quantum computing? What is it?
Information technology gives us the
opportunity to go beyond the limits of the
current miniaturisation by changing the
paradigm, by using the phenomena of
quantum physics to conceive new ways to
“calculate”. One can imagine working with
qubits instead of bits (atomic states instead
of magnetic domains representing bits 0
and 1). The main interest of the quantum
computer would be that its power is an
exponential function in terms of the num-
96
ber of qubits. In my opinion, this is one of
the strategic industries for the next 20
years. It would make possible many combinatorial calculations that are out of range
of a conventional computer at the current
state of knowledge. The ability to break
conventional cryptographic methods is
often put forward, but also the location of
connected objects (precise geolocation
for automatic car driving, the finding of a
book on a rack ...), a more comprehensive
modelling of complex phenomena such as
weather, protein folding…
Do quantum computers exist?
The Canadian company Dwave has sold
its first experimental machines operating
at very low temperatures to Google,
Amazon, NSA, NASA... We are talking of
millions of dollars for each. The Quantum
Computing programme is one of the key
programmes of the NSA, knowing that all
current encryption algorithms would
become obsolete in an instant. We must
design new systems, new algorithms, if
only to protect banking and financial data
worldwide. Applications are yet to be conceived and will probably be surprising, as
Stéphane Boudon
at the time when the laser was invented:
who would have thought that a plasterer
would use it daily, or that it would be incorporated into all printers?
More examples?
I am thinking of Singapore, a small territory
that has managed to ride on the waves of
innovation, starting with electronic components, then proceeding to software and
biotechnology to become a leader in innovation in the life sciences. By its very
nature, Quantum Computing is of interest
to a financial centre. By focusing early on
this type of technology, the country could
have faster returns than, for example, in
biotechnology, not only because that is an
already “old” discipline where major centres have been active for decades, but
also because information technologies by
their very nature follow faster cycles. One
Quantum Computing platform, Quantum
Innovation Lab, already exists in London,
Dwave has been around for over a
decade…
information:
© DR
Luxembourg
and quantum
computing
“Quantum Computing
is of interest to
a financial centre.”
www.myofficialstory.com/stephaneboudon
97
ICT
Business
Amazon.com
Amazon.com is a leading global Internet
company and one of the most trafficked retail
sites worldwide. For a company founded only
in 1994, Amazon’s track record and recent
history is remarkable. Arguably one of the
main game-changers in Internet shopping
trends, Amazon’s presence in Luxembourg is
expanding rapidly.
rt
Expe
98
Spotting a gap
Though there are still a small number of the
population that refer to Amazon as the
“online bookstore”, in just under two decades Amazon has gone from what began
as “Earth’s biggest bookstore” to become
“Earth’s biggest anything store”. In 1994
Amazon CEO and Founder Jeffrey Bezos
recognised that Internet usage was increasing by 2,300 percent a year. Highlighting an
opportunity for a new sphere of business,
Bezos began considering the commercial
possibilities. Reviewing the top 20 mail
© Ken Wolter/Shutterstock.com
From
garage
sales to
global
power
order businesses, he applied a simple
“script”; which of those could be better
conducted more efficiently over the Internet
than by traditional means - book selling had
no existing, comprehensive mail order catalogue (a physical catalogue would be too
big to mail) - perfect for the Internet, capable of housing a vast database with a virtually limitless number of potential customers.
Changing the game
Called Amazon in relation to the seemingly
endless South American river with its numberless branches, the company now serves
approximately 140 million active customers
worldwide. It was also reported that there
are 2 million merchants selling on Amazon,
equaling a third of the total listings. North
American markets represents 55.4% of
sales with the other 44.6% sourced
elsewhere. Ironically, if it were just about
books, Amazon would never have been
able to spread as widely as they have done.
Coming full circle with the Kindle (launched
in 2007), which is to book reading what the
iPod is/was to listening to music on the go,
Amazon have, to all intents and purposes
re-invented the wheel. After all, it was a
wheel of their own design in the first place
and it is now the bestselling product in the
company’s history. Taking an aggressive
route in to the crowded tablet pc market,
the Kindle Fire even pushes the iPad for
dominance.
The many faces
Amazon’s evolution from website to
e-commerce partner to development platform is driven by the spirit of innovation –a
part of the company’s DNA. The world’s
“brightest technology minds” use Amazon.
com spec. to research and develop technology that improves the lives of shoppers,
sellers (merchants) and developers around
the world. Expansion has propelled
Amazon.com in myriad directions. While
the website still offers millions of books,
movies, games, music and electronics,
this only accounts for 50% of the core
sales. Amazon also offers products and
services, such as self-publishing, online
advertising, e-commerce platform hosting, and a co-branded credit card.
Amazon are also present in other guises,
such as Shopbop, Abebooks, Zappos,
LOVEFiLM and imdb.com. Don’t judge a
book by its cover the saying goes…
information:
www.myofficialstory.com/amazon
99
ICT
Business
ICT in Luxembourg
Seizing the post-2015 opportunities
also be supported as a way to attract international industry players to Luxembourg for
a day or two. And as we all know, many
people come to Luxembourg for a short visit
and end up staying for decades.
The smoke has cleared
Over the past 18 months, the information
and communications technology industry
in Luxembourg has faced uncertainty
resulting from the abolition of the special
reduced VAT rate on electronic transactions from the beginning of 2015. There
were fears that high-profile players such as
Amazon, iTunes or Skype would leave the
Grand Duchy. But prime minister Xavier
Bettel has noted: “While many international
companies came to Luxembourg thanks to
its attractive VAT rate, that was not the only
factor.” Now the smoke has cleared, most
of the big players appear set to keep
Luxembourg at the heart of their European
strategy to leverage the country’s top-class
infrastructure, multilingual capabilities and
unique expertise in areas such as IP and
tax.
Pooling Luxembourg’s resources
The main priority is to raising Luxembourg’s
profile on the international stage.
Entrepreneurs from around the world with
promising projects to launch do not neces-
100
“A carbon nanotubes
company is already in
Luxembourg, ready
to conquer the world
with a disruptive
technology.”
sarily think of the Grand Duchy as a hub
from where they can conquer the world.
Even for fundraising, the financial industry is
not internationally recognised as a magnet
for start-ups. Outside the country, few people remember that Skype was primarily a
Luxembourg venture capital story. The priority is therefore to mobilise all the available
resources to promote Luxembourg, including FedilICT, APSI and Luxembourg4ICT,
pooling efforts, budgets, networks and
expertise. Events such as ICT Spring should
© Shutterstock
January 1, 2015 will mark the start of a new
era for the information and communications
technology sector in Luxembourg. Despite
the end of the special VAT rate for electronic
content, many opportunities await if all market
participants come together to seize them.
Innovative players in the spotlight
It is crucial to pay attention to the foreign
companies already established in
Luxembourg – and not just the big names
such Amazon, Big Fish or Rakuten. A carbon nanotubes company is established in
the Grand Duchy, ready to conquer the
world with a disruptive technology. Another
one specialises in portable 3D scanners. A
third is investing in gene technology. Fast
growing companies with massive potential
expect to be in the spotlight! They need a
rapid response to their requests, easy
access to the country’s decision-makers
and strong support when it comes to promotion. In Silicon Valley, such CEOs are
asked daily to speak at events or to the
press. Their high profile around the world
can help put Luxembourg more firmly on
the international ICT map – faster response
can mean more deals and more jobs.
Together Luxembourg’s ICT professionals
have an opportunity to create a unique culture where businessmen, investors and
authorities share big ambitions and achieve
them by accepting higher risks in order to
reap the huge potential rewards.
information:
www.myofficialstory.com/ict
101
ICT
Documents
in every form
Interview with Edith Magyarics, CEO of Victor
Buck Services and Jean-Denis Diet, Head of
Sales.
rview
Inte
What’s the situation with the law
on electronic archiving in
Luxembourg?
The law on electronic archiving was discussed by the Chamber of Deputies’
Economic Committee up to early
September. The draft law will soon be
amended and then presented to the
Chamber of Deputies. This project is crucial to the country’s economic development as an international digital hub.
Practically speaking, it will change how we
create, manage and archive documents of
legal value. Luxembourg is one of the best
equipped countries to be a pioneer in this
sector, thanks to its electronic, human and
legal infrastructure. That said, although the
law in itself is an asset, which will take on
its full meaning in a court, companies such
as VBS can already offer the same guarantees, which may also be recognised as
of right before a court.
What are the consequences
for VBS?
Our different clients are affected by each
regulatory change, which creates oppor-
102
tunities for our company: VBS must listen
to them, so that it can meet their needs
and offer new, creative solutions. Since its
early days, VBS’ main activity has been to
serve the “Transfer Agent” business line in
the Investment Funds and major groups
sector. This is a solid backbone to which
we have added products and solutions
focusing on innovative technologies and
new services. In this context, we have several cards to play: return to our existing
clients to help them find solutions to the
regulatory and operational changes, find
new prospects in other industries, and
combine our different products to offer
global solutions to issues that are both
international and local. For example, the
paperless office can affect hospitals, government departments or businesses in
other sectors. With regard to our development in Asia, our clients frequently request
our support in this part of the world. This
is why we have a local presence in
Singapore, as a starting point, and another
24/7 remote office for all our clients in Asia.
What are your group’s other
growth areas?
The VBS Group is organised around 5 pillars. Firstly, Client Communication
Management, which consists in processing data from various sources and in various formats to ensure the dissemination of
« Everything that
affects the financial
industry creates
opportunities
for us. »
Edith Magyarics,
CEO of Victor
Buck Services
© 360Crossmedia/M.M.
Victor Buck Services
Business
documents or information via a vast range
of distribution channels. Secondly, the
regulatory sector, for which we have developed the Vgil solution, which helps companies deal with the requirements of new
legislation and existing needs in regard to
document collection. The integration of
Learch on 1 January 2014 also gave us a
head start in the legal archiving sector. The
next pillar - Information Capturing Services
– focuses on the paperless office, to enable companies to process their data in
their own system. The 4th pillar - Entreprise
Content Management – facilitates the
totally safe, external communication of
information. Finally, our Print & Mail Rooms
are represented by 6 companies in
Luxembourg which offer “insourced out-
In figures
Date created: 2000
Employees: 192 people
33% women
sourcing”: VBS supplies the people and
the machines directly to the company. In
partnership with the “Post” group, VBS
has developed a high level of flexibility and
a wide range of services, both in Europe
and Asia, which gives us high hopes for
the future!
information:
www.myofficialstory.com/edithmagyarics
www.victorbuckservices.com
103
Business
Services
106. P
ayPal: Credit history
108. CHAMP Cargosystems: Global knowhow that also benefits Luxembourg
110. S
anne: Growing with a global client
base
112. Arendt & Medernach: Entrepreneurship
in our DNA
114. F
ouad Rathle and Werner Eckes:
Longevity for the economy
116. Pierre Voos: Fostering risk
management excellence in
microfinance by connecting
Luxembourg to leading microfinance
institutions
of Services
360Crossmedia www.myofficialstory.com/360Crossmedia
Agile partners www.myofficialstory.com/agilepartners
Aviatrax www.myofficialstory.com/aviatrax
Cactus www.myofficialstory.com/cactus
Champ www.myofficialstory.com/champ
Diversity www.myofficialstory.com/diverstiy
Fare www.myofficialstory.com/fare
Funds Partnership www.myofficialstory.com/fundspartnership
Genaveh www.myofficialstory.com/genaveh
HSBC www.myofficialstory.com/hsbc
HVP www.myofficialstory.com/hvp
Inowai www.myofficialstory.com/inowai
Intys www.myofficialstory.com/intys
KPMG www.myofficialstory.com/kpmg
KR Recruitment www.myofficialstory.com/krrecruitment
Kurt Salmon www.myofficialstory.com/kurtsalmon
PWC www.myofficialstory.com/pwc
RBC IS www.myofficialstory.com/RBCIS
Robert Walters www.myofficialstory.com/robertwalters
Rockenbrod www.myofficialstory.com/rockenbrod
SGSS www.myofficialstory.com/sgss
Thomson Reuters www.myofficialstory.com/thomsonreuters
UBS www.myofficialstory.com/ubs
Etc…
104
105
Services
Business
PayPal
In August 1998 a new payment method
revolutionized online transactions. The result of
an encounter between two visionary thinkers
keen to re-imagine the concept of spending
“money” birthed the technology that would
become known as PayPal.
w
ervie
Int
106
Field(link) of dreams
So the history goes, PayPal co-founder
Peter Thiel gave a guest lecture at Stanford
University: his focus being the link between
market globalization and political freedom.
Following this lecture, Max Levchin, who
had heard of Peter through mutual friends,
introduced himself and only a fortnight later
the like-minded pair launched Fieldlink, a
security focused company which allowed
© littleny/Shutterstock.com
Credit
history
users to store encrypted information on
Palm Pilots and other PDA devices, essentially enabling handheld devices to become
digital wallets. Operating under various
guises such as Confinity and X.com before
settling on the more recognizable brand we
know today, PayPal very really reshaped
online commerce.
Digital cash
A virtual re-imagining money made actual,
the service allows people to send money
without sharing financial information, with
the flexibility to pay using their account balances, bank accounts, credit cards or promotional financing. PayPal is an
e-commerce business which allows online
payments in more than 55 countries.
PayPal was acquired by eBay in October
2002, combining the strength of the world’s
largest online marketplace with the web’s
leading payment system, it wasn’t long
before business leaders realised eBay
users are posting PayPal’s logo on their
auction pages to encourage others to create their own accounts. PayPal swiftly
amended its business platforms to enable
eBay payments. To date PayPal serves 106
million active accounts in 190 markets and
25 currencies around the world.
Virtual security
Thiel and Levchin operated under the pretext that digitally transferable cash is safer
than “real cash in a wallet” because it can
never be stolen. Levchin and an engineer
by the name of David Gausebeck developed the “Gausebeck-Levchin test”; a
deceptively simple challenge response
mechanism that could eliminate potential
fraudulent attacks. A host site’s sign-in
page contains an image with black letters
on top of a yellow/white background with
thin black lines – a human can identify the
random letters but a computer robot cannot: CAPTCHAS – now widely used across
the Internet. Its European headquarters
was established in Luxembourg in 2007
after the Luxembourg Government granted
the company a banking license for electronic transactions.
information:
www.myofficialstory.com/paypal
107
Services
Business
CHAMP Cargosystems
Global know-how
that also benefits
Luxembourg
ny
mpa
Co
108
How would you define your
particular know-how?
What we have to offer is know-how that
is focused on IT & logistics, global and
Luxembourgish. CHAMP Cargosystems is
one of a rare breed, an IT company in which
the global strategy and policies are decided
in Luxembourg for the entire group. It’s not
just that the company has its headquarters
in the Grand Duchy: Luxembourg is not just
in the address on our business card, it’s
also in our DNA and it’s part and parcel of
everything we do. In addition, of the 400
people who work for this company around
the world, 130 work from Luxembourg.
More importantly, our CEO and our CFO
are based in Luxembourg. As regards
to infrastructure, we serve close to 4000
customers out of our two data centres in
Luxembourg. The country has launched
a major government initiative involving
IT and logistics. That’s where we come
in, because our know-how is positioned
exactly between these two poles.
What are you doing to promote
your “made in Luxembourg”
label around the world?
In the course of our prospection work
abroad, we present Luxembourg to our
clients, highlighting its influence and what
the country has to offer. We are deeply
embedded in Luxembourg’s government
policy, and in this regard we often take part
in trade missions and state visits to many
countries, including Portugal, China and
Turkey. Our participation in these delegations to promote the Grand Duchy at an
international level opens up many business
opportunities and helps forge new partnerships between the countries we visit and
Luxembourg.
What initiatives have you taken
in Luxembourg to share your
know-how in the sector?
There are various Luxembourg based programs and initiatives that allow us to share
our knowhow in the field of IT and logistics.
For example, we are taking part in the
Logistic Cluster lead by the Luxembourg
Chamber of Commerce and the “Single
Window for Logistics” initiative lead by
the Ministry of Economy. Furthermore, we
“Our international
experience in IT
solutions and our
logistics expertise also
benefit Luxembourg.”
Arnaud Lambert, Vice-President
Global Solutions Delivery, Member
of the Executive Committee
of CHAMP Cargosystems
attract airlines to Luxembourg by hosting
their systems here (their databases and
their information processing systems), while
in fact the client company may be based in
Mexico or in Asia. Finally, we bring all our
international clients together to discuss
products, strategy, etc. In 2014, we have
organized this event in Luxembourg to celebrate our 10th anniversary. Inviting clients
to the Grand Duchy is another way to get
the country’s economy working, and it also
helps project a positive image of the country around the world.
© 360Crossmedia
Arnaud Lambert provides us with an insight
into CHAMP’s structure, their place in
Luxembourg and the initiatives pursued.
information:
www.myofficialstory.com/champ
www.champ.aero
109
Services
Business
Sanne
Growing
with a
global
client base
Over the past 25 years, Sanne has built up
a multi-jurisdictional fund and corporate
administration services business to meet the
growing needs of an international client base.
pany
© 360Crossmedia
Com
110
An expanding global network
Since being established 25 years ago
Sanne has developed its reputation in the
market as a leading provider of independent fund and corporate administration services with a particular focus on alternatives.
Deep expertise across asset classes, markets and products is driven by teams
focused around the specific needs of clients supported by robust and quality
assured processes, industry recognised
technology solutions and a robust governing framework. Today the group has 250
staff in eight offices worldwide, including
Dublin, London, Jersey, Guernsey, Dubai,
Hong Kong and Shanghai as well as
Luxembourg, and provides administration
services to asset managers, institutions
and corporates with more than €50bn
assets under administration.
An alternative fund specialist
For the past six years Sanne Group
(Luxembourg), a financial sector professional entity regulated by the CSSF, has
provided administration, financial reporting and governance services to alternative
funds and holding structures as well as
securitisation vehicles. It offers traditional
fund administration, NAV calculation and
transfer agency services to Luxembourgdomiciled private equity, direct and indirect real estate, private debt, venture
capital and infrastructure funds. A member of industry bodies including the
Luxembourg Private Equity Association
(LPEA), Luxembourg Real Estate
Association (Lux Real), and fund association ALFI, Sanne also provides corporate
services to general partner entities and
mancos, and company secretarial services, including the appointment of qualified directors.
Helping clients face new
challenges
Sanne’s growth over the years has
reflected evolution in the global marketplace for alternative investments and international structuring, characterised by
increased emphasis on regulatory and tax
compliance and good governance. With a
blue-chip client list, Sanne’s experience
and expertise in the fund industry are an
asset for Luxembourg’s ambitions to
strengthen its role as a centre of the alternative investment industry in Europe.
information:
www.myofficialstory.com/sanne
www.myofficialstory.com/ninakleinbongartz
111
Services
Business
Arendt & Medernach
SMEs are facing more and more legal
problems. Increasingly local contractors need
help to cope with complex administrative
issues. We decided to ask Christian Point and
Laurent Schummer a few questions.
rt
Expe
112
What has changed in the legal
environment, and how is this
affecting businesses?
Christian Point: The phenomenon we are
witnessing can be described as legislative
inflation. Independent operators are having
to come to grips with increasingly voluminous and complex texts. This of course generates risks, especially in terms of the criminal
liability of the management, but it also creates opportunities. For many years we have
been helping entrepreneurs by providing
them with advice on useful tools and strategies, because it happens sometimes that
different administrations issue instructions
which are conflicting at the end. Indeed, at
times independent operators find themselves in a hall of mirrors and feel totally
bewildered.
Laurent Schummer: We’re also working
with new stakeholders such as start-ups that
have no problem with regulation, but who
just want to talk to the regulator. For a long
time, this approach was reserved for bankers, but entrepreneurs have now stepped up
to the plate.
What kind of businesses are you
working with?
Christian Point: Many different types of
businesses, in a number of broad categories:
transport and logistics, e-commerce, energy,
the environment, public procurement and
PPPs, construction and industrial companies, not forgetting the health sector and
services for the elderly, who are among the
country’s biggest employers. All these companies have something in common: in addition to their day-to-day activities, they are
called upon to deal with issues connected
with company law, VAT, labour law, the environment, competition and regulation.
Laurent Schummer: Luxembourg has
more success stories than you might think.
For example, IEE (which was taken over by
the Chinese), Ceratizit, Cebi International,
Goodyear, not to mention Skype now held
by Microsoft.
How long have you been working
with these entrepreneurs ?
Christian Point: These services were
already up and running when the Firm was
set up in 1989. Jean Medernach and Ernest
Arendt have always attached tremendous
importance to businesses and the environment. And we have seen a constant development and diversification of this field of
activity. We were also approached by clients
from the world of finance thanks to a case
“Luxembourg has
more success stories
than you might think.”
Laurent Schummer
“Jean Medernach and
Ernest Arendt have always
attached tremendous
importance to businesses
and the environment.”
Christian Point
involving a public procurement contract.
Laurent Schummer: Because of the way
in which Luxembourg has developed, many
have focused their attention on finance. We,
like others, seek to bring together a group of
specialists from a wide variety of fields to
serve entrepreneurs. Our office in
Luxembourg offers entrepreneurs the most
Entrepreneurship
in our DNA
diversified range of tailored services in various legal aeras, and we pool our resources
to enable entrepreneurs to cope with the
current challenges.
information:
www.www.myofficialstory.com/arendt
www.arendt.com
113
Services
Business
Fouad Rathle and Werner Eckes
Longevity
for the
economy
w
ervie
Int
114
You said recently that the Institute
represents a patriotic challenge. Why?
Fouad Rathle: The future of Luxembourg
depends on the economic sustainability of the
banks. Following the lifting of banking secrecy,
banks must reinvent themselves. In particular,
they must offer their clients excellent service
that rivals the most advanced competitive
markets such as London or Zurich, in terms of
quality and skills. The Institute offers a range of
450 courses to meet this challenge. In our
opinion, this is the only hope for assuring the
future longevity of the market, and therefore
the country.
Werner Eckes: We mustn’t forget that the
financial sector employs 26,000 people. By
developing their skills, we guarantee that people are employable, that they will keep their
jobs and ensure the vitality of the economy.
Currently, we issue 23 certifications, but given
the national and international economic situation, the Institute has a strategic role to play
in the coming years.
© 360Crossmedia/A.S.L.
Training finance professionals is central
to the development of the Grand Duchy of
Luxembourg. Interview with Fouad Rathle and
Werner Eckes, President and Director of the
Institute (IFBL) respectively.
« Training
is a patriotic challenge. »
Werner Eckes (left) and Fouad Rathle
How do you see the future of the
Institute?
W.E.: The Institute benefits from a unique
position at the centre of an ecosystem consisting of professional associations, government ministries and direct links to companies.
We exchange ideas with HR Departments,
Company Chairmen and experts on a daily
basis. This means we can provide training for
a sector that is in the process of transformation, and can develop our courses in a very
responsive way. However, we also play an
active role in protecting jobs, in partnership
with the Ministry of Employment and Adem
(the job centre), via the Fit4job programme.
F.R.: Since 1990, the Institute has trained
around 150,000 professionals, who are all
ambassadors for the Institute within their
companies. When someone is looking for a
job in the financial market, we often know a
company that will want to hire them.
Next year, you will celebrate your
25th anniversary. What assessment
do you make of this watershed?
F.R.: I would say that above all the Institute
owes its success to the enthusiasm of a
united, unconditionally committed team: 250
trainers and 15 employees who have made
IFBL the benchmark in financial training.
Where other than the Institute can you take
a 5-day course given by the prestigious
Professor Philippe Jorian for example – an
expert in “Risk” based in California – for less
than €3,000 all included. Our non-profit status means we can offer cheaper courses.
W.E.: The success of the past 25 years is
primarily built on the strength of our team.
The Institute benefits in particiular from the
president’s active involvement on a daily
basis.
information:
www.ifbl.lu
www.myofficialstory.com/ifbl
115
Services
Business
Pierre Voos
Every year since 2007, ATTF (Financial
Technology Transfer Agency, Luxembourg)
holds every year a workshop on risk
management in microfinance institutions
(MFIs), specifically designed for high-level
executives of leading MFIs that have already
established or are about to establish their own
risk management department.
w
ervie
Int
116
Why and How?
This project, under the joint organisation of
ATTF, ADA (Appui au Développement
Automone) and ALRiM (Luxembourg
Association for Risk Management Professionals)
is tailor made to meet the needs of the so-called
Tier 1 MFIs. Today, training in the area of risk
management has become a real priority for
MFIs all over the world. Luxembourg was one
of the first EU countries to recognize the value
of microfinance as a tool to fight poverty. For
over two decades the Luxembourg government has supported a significant number of
activities in the area of microfinance, like this
project focusing on risk management. The idea
for the project emerged during the Microfinance
Week in 2005. Following a market study, the risk
management project was designed and implemented by the three partners. The annual workshops have shown that it is possible for
developing and developed countries to share
experience in the area of risk management. An
experienced and highly qualified risk manager
of a Luxembourg based bank will learn from the
management of an MFI, while the latter will get
familiar with the best practices currently used in
an international financial centre such as
Luxembourg. Case studies, focusing on various
risk management issues in microfinance, are
presented by an international expert in microfinance.
A coaching approach
The second part of the project consists of technical assistance for a small number of MFIs that
were present at the workshop in question and
have the possibility of applying for technical
assistance in the risk management area based
on a coaching approach.
ATTF and its partners select between one and
four MFIs, which will be coached by risk managers of Luxembourg based banks. This
coaching exercise will start several months after
the workshop, thus ensuring an ongoing close
relationship between the CEO of the coached
MFI and the coach. The kick-off starts in
Luxembourg when the CEOs of the selected
MFI’s become acquainted with the coaching
approach and meet their coaches during three
intensive working days. During this period, the
action plan in the area of risk management is set
up and presented officially to the three partners
by the coachee together with the coach. A
charter outlining the respective commitments of
the duo coach/coachee will officially be signed
during the closing ceremony of their stay in
Luxembourg. Once back home, the coachee
will make sure that the action plan be implemented by the management of the coached
MFI. After the first year of the technical assistance, the coached MFI will send another representative to the next edition of the workshop
for follow-up and debriefing. The technical
assistance may last up to 3 years upon request
of the MFI and after acceptance by the organisers.
From theory to practice
While it is clear that the risk management principles remain the same whether applied in the
banking or the microfinance environment, the
way to implement them will of course differ. This
project is a unique experience for the coached
MFI, the Luxembourg based risk manager and
the three partner associations, and is constantly
evolving. Since their inception there have been
seven workshops with more than 115 participants and 19 coached MFIs. ATTF has also
partnered with ADA to develop SIMFI, a unique
training tool where teams of participants can
© ING Luxembourg
Fostering risk manag ement excellence in
microfinance by con necting Luxembourg
to leading microfinan ce institutions
“Luxembourg was one of the
first EU countries to recognize
the value of microfinance as
a tool to fight poverty.”
Pierre Voos, Head of Strategy, Project and
Product Management at ING Luxembourg
simulate managing a MFI over a four-year period
thus strengthening their knowledge of performance, risk and asset & liability management,
competing with several virtual MFIs. Experience
has shown that a web-based tool testing the
impact of management decisions in a safe environment reflecting market changes is conducive to improved management practices.
information:
www.myofficialstory.com/pierrevoos
117
Business
Industry
120. R
obert Dennewald: Passing on the
Flame
122. R
omain Poulles: Interview
124. Nadia Popova – Akuo Investment
Management: Renewable energy and
property: from the same mould
128. Arcelor Mittal: 100 years of the
Luxembourg steel industry
of industry
Accumalux www.accumalux.com
Airtech www.airtech.lu
Amer-Sil www.amer-sil.com
Ceratizit www.ceratizit.lu
CFl www.cfl.lu
Circuit Foil www.circuitfoil.com
CTI Systems www.ctisystems.com
Delphi www.delphi.com
Dometic www.dometic.com
Dupont www.dupont.com
Elth www.cebi.com
Faurecia www.faurecia.com
Galvalange http://dudelange.arcelormittal.com
Goodyear www.goodyear-dunlop.com
Guardian Automotive www.guardian.lu
Hitec www.hitec.lu
Hydro Aluminium Clervaux www.hydro.com
IEE www.iee.lu
Novelis www.novelis.com
Raval Europe www.raval.co.il
Reichert www.reichert.com
Rotarex www.rotarex.com
Tarkett www.tarkett.com
Textilcord www.glanzstoff.com
TrefilArbed www.trefilarbed.com
Etc…
118
119
Industry
Business
Robert Dennewald
Passing on the Flame
Eurobéton owner and president of the FEDIL
(Luxembourg’s Business Federation), a light
comes on in Robert Dennewald’s eyes at the
mere mention of the word “Entrepreneurship”.
rait
Port
Transmission
Robert Dennewald firmly believes that
entrepreneurs have a responsibility: to
pass on the flame to the next generation
in the spirit of the craftsmen of old, who
instilled their art in their companions. He
obviously regrets the lack of entrepreneurial culture in the Grand Duchy, and believes
that to change this situation, you have to
give children a sense, very early on, that
they are not doomed to become civil servants. Not that there is anything wrong with
being a civil servant, but he would like to
see a career choice being made with all
the facts at hand. Of course, being an
entrepreneur is risky, but the freedom and
control it offers over one’s own time and
destiny make it all worthwhile.
© DR
MBO
His own career has benefited from decisive strokes of luck: he graduated from the
University of Liège as a Civil Engineer in
1978 and immediately began working for
the Highways Department of the Ministry
of Public Works in Luxembourg. His career
path seemed all mapped out. Four months
later, he joined ARBED “through the back
door”, which actually opened up a
120
life-changing opportunity. The success of
the laminated beams in Differdange those used today to rebuild Ground Zero
buildings - allowed him to work for 3 years
in New York, from where he returned in
1986 with 250 contracts signed. He then
worked for the directorate of TradeARBED,
then as director of Europrofil, which took
him to China and Japan. He joined the
Ciments Luxembourg group in 1993 and
was appointed CEO of Eurobéton SA in
1996, which he took over 10 years later via
an MBO before taking control of the group
in 2010.
The spark
When his last two children embarked on
their own careers, the President of the
Fedil advised them to go off and learn
about the world of business, but not in his
company as that would be too easy. He
thus participated in the creation of the
competition 123go and the emergence of
Jonk Entrepreneuren. Both programmes
are devised to stimulate an entrepreneurial
spirit in young people from an early age.
For Robert Dennewald, the best way of
finding one’s way in the world is to notch
up as much experience as possible,
whether through a project with fellow students or an internship in a company.
information:
www.myofficialstory.com/robertdennewald
121
© 360Crossmedia/J.P.
Industry
Romain Poulles
Interview
Interview with Romain Poulles, chairman
of the Luxembourg Ecoinnovation Cluster
and CEO of PROgroup.
rview
Inte
Download
the magazine
of PROgoup
“Smart Design”
T
here’s no longer such a thing as
waste material – that’s the philosophy behind the circular economy,
an idea with which the
Luxembourg Ecoinnovation Cluster has been
grappling for the past six months. Buildings
are major consumers of raw materials, so can
one avoid their demolition creating mountains
of waste matter? Romain Poulles, chairman
of the Ecoinnovation Cluster and CEO of
PROgroup, explains how.
Magazine de PROgroup
#02
COVER STORY
Productivité
P. 14-17
SUCCESS
Interview de Romain
POULLES, Président de
Ecoinnovation cluster
Luxembourg et CEO
PROgroup
P. 8-11
INNOVATION
vyzVoice laisse
les données parler
d’elles-mêmes
P. 20-23
BUSINESS
Le Cradle to Cradle,
une philosophie
innovante
P. 26-27
122
What raw materials are stored
within our buildings?
According to studies by the Environmental
Protection Encouragement Agency and the
Fraunhofer Institute, the density of copper
deposits in cities is greater than in mines.
Copper can be recycled during demolition, but
it’s laborious process if not planned right from
the outset. The same is true for glass, plastic,
concrete, steel and stone. With our resources
shrinking rapidly, our sector has to adapt. It’s
true that the real estate sector accounts for
40% of carbon emissions, but a lot of effort is
invested in bringing this proportion down. Too
often we forget that the industry is a major consumer of raw materials and producer of waste
material. Reducing our dependence on fossil
fuels is now well underway and awareness of
the issue is widespread.
But surely recycling also takes
place in the building industry?
In fact around 60% of the material resulting
from demolition is recycled, but unfortunately
for the most part this represents so-called
downcycling that entails a deterioration in the
quality of the material recycled. For instance, it
is often used in road substructures or filling
beneath the foundations of new buildings. The
extraction of more valuable raw materials such
as metals for example requires significant
manpower. In other industries, recycling (or
upcycling) works well today. The construction
is lagging behind, and we need to change this
urgently. That will require recycling to be taken
into account when starting the design process. In addition, all producers of construction
materials must embrace their share of responsibility. In the future buildings must be designed
in a way that enabled them to be dismantled.
But this is just the first step. Once the various
materials can be easily recovered during the
demolition process, the producers themselves
must be able to use them to create new,
high-quality products. Certain products are
already created in this way today, such as
Desso floorings, Hermann Miller furniture and
perhaps soon windows, but there’s still a huge
amount to be done.
What obstacles stand in the way of
a circular economy?
First with the sector is very fragmented and
secondly most products are still one-offs.
There is no legal pressure for this to change
and the various players, from the developer to
the investor via the architect, the occupier and
the producer of building materials, all have different interests. There is little or no joint planning or collaborative design in the sector. All
the different participants need to work toward
the same goal and they need to coordinated
by a leader, capable of seeing the big picture.
Do we need a different model?
A whole array of economic models need to be
reinvented. Gradually materials need to be
rented, not sold, to building owners. Producers
will take them back at the end of the building’s
life and transform them, into new products.
This means producers will have to improve the
quality of their products in order to be able to
reuse the row materials. We will need new
types of insurance, tailored mortgage financing models and the ability to reverse the logistics chain. In Luxembourg, depreciation
models for real estate investment will also have
to be rethought. Once this awareness exists,
creation of the first materials bank will just be
around the corner. There are already some
great examples. Philips has lighting models in
its catalogue that are not for sale; instead the
client is charged by the amount of light output
they use. Michelin offers some clients a business model involving leasing by the kilometre
rather than the sale of tyres.
How do you assess the value of
something previously treated as
waste?
We calculate than more than 20% of the value
Business
of a building lies in its raw materials. If this raw
material can be recovered at a higher value, it
can pay for much of the additional design
costs for these pilot projects. It goes without
saying that these costs are higher at the beginning of the process only because it entails
innovation and changing established practices. Subsequently these cost benefits will be
available for the long term. If an investor is no
longer buying certain materials or products,
but instead rents services such as lighting,
heating, sound absorption or insulation, their
initial investment outlay will be reduced. The
Cradle to Cradle approach also limits the
investor’s end-of-life risk. Today a substantial
quantity of materials is processed in specialist
facilities at often colossal expense.
Do you envisage introducing the
Cradle to Cradle concept in
Luxembourg?
Yes, very soon PROgroup will unveil an initial
pilot affordable housing project that can be
completely dismantled and is self-sufficient in
energy. Some of the constituent materials will
be leased by the investor, while certain household appliances will be rented by the occupant,
who for example will pay by the washing cycle,
not by the machine. The priority for the building
itself will be to use valuable and high-grade
materials that are likely to rise in value for the
facade and technical systems. We plan to
develop new ideas within the Ecoinnovation
Cluster to give impetus to the sector and further this kind of innovation and we expect to
submit these ideas to the authorities in the
coming months.
information:
www.progroup.eu
www.myofficialstory.com/progroup
123
Industry
Business
rt
Expe
Nadia Popova – Akuo Investment Management
Renewable
energy and
property: from
the same mould
© DR
Thanks to recent efforts by the US regulator,
it should soon be possible for solar and wind
power projects to use REITs (Real Estate
Investment Trusts) as an investment vehicle.
This appears a natural progression, given the
strong similarities between renewable energy
and property.
124
125
Industry
“In the minds
of consumers,
there is a
certain amount
of confusion
in relation to
renewable
energy.”
© DR
Nadia Popova
126
A similar profile
Before the first stone is laid, a renewable
energy project needs a building permit,
just like in the property sector. But the
similarities don’t end there. Both activities
require a considerable initial investment
and in return receive cash flow, which can
be forecast over the long term, adjusted
to inflation. The third similarity is that both
of these activities make extensive use of
borrowing to fund their ventures and, in
the case of a solar or wind power project,
bankers need little persuasion as they are
often dealing with a single well-known
client: EDF in France, Duke Energy, for
example, in the United States, E.ON in
Germany, etc. Finally, a wind farm or solar
power plant incurs low maintenance costs,
just like a building. It therefore comes as
no surprise to discover that property and
renewable energy attract the same investors. Both assets represent an interesting
diversification in a portfolio, since they are
not linked to the usual business cycles. The
reverse even applies for renewables: electricity is now essential in modern society!
Multiple synergies
Akuo Investment Management manages
various funds in the renewable energy
sector, which finance many integrated
photovoltaic projects. The example of
Saint-Charles in Perpignan, in the south
of France, is a perfect illustration of the
continuous creation of synergies between
renewable energy and property. Akuo has
installed 63,000 square metres of solar
tiles in this huge fruit and vegetable cen-
Business
tre, while at the same time handling the
removal of asbestos from the roof. The
system now produces 10% of the town’s
energy for its 120,000 inhabitants, while
reducing the industrial complex’s carbon
footprint. In addition to the building trades
involved, this represents considerable
added value for the actual building. In
other locations, such as islands or places
located outside electrical networks, solar
power allows the kW/h cost to be divided
by three, and some power plants are funding local farming.
An image to be promoted
In the minds of consumers, there is a
certain amount of confusion in relation
to renewable energy. Exchange-traded
funds that invested in “Clean Tech” have, of
course, suffered a great deal as a result of
the arrival of the Chinese in the market and
the financial crisis, but developers such as
Akuo have benefitted from the dramatic
fall in prices driven by competition. And
when the press talks about the impact of
future cuts in government grants, professionals know that for well-structured projects, renewable energy is at “grid parity”,
i.e., competitive with fossil fuels or nuclear
energy. In other words, no grants are
needed. Material prices are falling, productivity is increasing and the basic business
principle still holds true: the key is choosing
your location carefully!
Download
Megawatt,
the magazine
of Akuo
information:
www.myofficialstory.com/nadiapopova
www.akuoinvestment.com
127
Industrie
Business
ArcelorMittal
© ArcelorMittal
100 years
of the Luxembourg
steel industry
In 2011, ArcelorMittal celebrated a century
of history and innovation in the Luxembourg
steel industry. A centenary of steel that has
genuinely shaped the country.
pany
Com
128
A new era
The year 1911 marked a new era for
Luxembourg, with the true beginnings of
the modern steel industry. At that time, the
early Luxembourg steel industries were
entering a phase of consolidation. By
deciding to expand their businesses, the
country’s steel manufacturers learned very
early how to adapt to a changing world.
The Société des Hauts-Fourneaux et
Aciéries de Differdange (HADIR) came into
being in 1920. Later, the merger of the
Aciéries Réunies de Burbach Eich
Dudelange gave birth to ARBED.
Continually adapting
At the celebration of the centenary in 2011,
Michel Wurth, Chairman of the Board of
Directors of ArcelorMittal Luxembourg,
commented that “nowhere else has the
steel industry played such an important
role during the past century, than in our
little country. Steel and mining have
shaped the land, enriched the country,
and given work to thousands of immigrants. It has enabled agriculture to
develop and has contributed to our model
of social protection and dialogue.” Lakshmi
Mittal, Chairman of the Board of Directors
and CEO of ArcelorMittal, added: “If we
keep adapting, I am convinced that the
steel industry will continue to be the pride
and strength of Luxembourg.”
A world leader
ArcelorMittal, the world’s leading integrated steel and mining company, has a
presence in over 60 countries. The Group
is the leader in all the principal global steel
markets, including automotive, construction, household appliances and packaging. Its industrial footprint, in over 20
countries on four continents, gives it a
presence in all the key steel markets, in
emerging and developed economies. In
2010, ArcelorMittal recorded a turnover of
78 billion dollars, producing 90.6 million
tonnes of crude steel, i.e. 6% of global
steel production. To celebrate the centenary of the Luxembourg steel industry,
ArcelorMittal has produced a beautifully
illustrated book. Entitled “Luxembourg
steel, a century of history and innovation”,
it is on sale in bookshops in Luxembourg.
information:
www.arcelormittal.com
www.myofficialstory.com/arcelormittal
129
SOCIAL CLUBS
Cercle Munster www.munster.lu
House 17 www.myofficialstory.com/house17
Golf Club Grand Ducal www.gcgd.lu
SERVICE CLUBS
Grand Orient www.myofficialstory.com/grandorient
JCI www.jci.lu
Kiwanis www.kiwanis.lu
Lions Club www.lions.lu
Rotary www.rotary-interclub.lu
Round Table www.trl.lu
© Shutterstock
SPORTS
Fitness www.justmove.lu, www.coque.lu
Golf Clubs www.golfdeluxembourg.lu,
www.kikuoka.lu, www.golfclervaux.lu,
www.golfgaichel.com, www.golfclubchristnach.lu
Polo Club www.poloclub.lu
Pool www.Q42.lu
Tennis clubs www.scheiss.lu, www.tennisspora.lu
Yacht Club www.mycl.lu
CHAMBERS OF COMMERCE
American Chamber of Commerce
www.amcham.lu
British Chamber of Commerce www.bcc.lu
Chamber of Commerce of Luxembourg
www.cc.lu
French Chamber of Commerce www.cfci.lu
Italian Chamber of Commerce www.ccil.lu
Indian Chamber of Commerce www.ibcl.lu
Nordic countries www.nobelux.se
130
PROFESSIONAL ASSOCIATIONS
Alco www.alco.lu
Banks www.abbl.lu
Private Equity www.lpea.lu
Industry and Trade www.fedil.lu
Investment Funds www.alfi.lu
OTHER BUSINESS LINKS
Entrepreneurs Task Force www.etfl.lu
Government www.gouvernement.lu
Incubator www.technoport.lu
Luxinnovation www.luxinnovation.lu
Regulator www.cssf.lu
Research www.tudor.lu
OTHER WEBSITES
Automobile Club www.acl.lu
Formalities www.guichet.lu
Foundations fdlux.lu
Schools www.euroschool.lu, www.islux.lu,
www.st-georges.lu, www.vauban.lu, www.empf.lu
Tourism www.visitluxembourg.com
Monarchy
Politics
Business
Associations
Gastronomy
Culture
Lifestyle
Shopping
+ of associations?
www.associations.vdl.lu
131
Associations
Jean-Noël Lequeue
Chairman Jean-Noël Lequeue says the
Luxembourg Association of Financial Sector
Compliance Officers (ALCO) is adapting its
services to members to meet the challenges
of an ever more complex regulatory
environment.
w
ervie
Int
132
Last year you highlighted the
scale of the challenges facing
compliance officers. Was 2014
quiet?
The challenges for compliance officers in
2014 were no less daunting than those of
2013. The avalanche of regulation continues to roll on, stronger than ever – the
EMIR, MiFID II, market abuse and AIFMD
measures will continue to have a massive
impact in the course of the year. In many
cases we need to put in place new processes and oversight mechanisms even
before the authorities have finalised the
practical implementation details. The
CSSF’s circulars and regulations place an
increasing emphasis on the role of internal oversight functions and especially that
of the compliance officer. This is helpful in
raising the profile of the compliance function, but it also represents a steady expan-
sion of its responsibilities. Even the biggest
institutions are struggling at times to keep
up. That makes it all the more important for
ALCO to be able to help the compliance
officers of all institutions, large and small.
What trends do you see in the
recruitment of compliance
officers in Luxembourg’s
financial sector?
It’s worth noting that financial institutions
are not the only companies where compliance functions are being put in place. A
significant range of fund industry players
that have hitherto been exempt, including accountants, lawyers and insurance
companies, see an increasing need for a
well-qualified compliance officer. ALCO
now has 750 members, which is a huge
number given the size of the country.
This growth has lead to the evolution of
an employment market featuring highly
trained and experienced compliance professionals that may consider changing
institution or taking on a more specialised
role. Internal recruitment remains highly
important for the sector. The training of
compliance officers may be carried out
through dedicated courses or on the job,
“The challenges for
compliance officers in 2014
were no less daunting
than those of 2013.”
Jean-Noël Lequeue
and ALCO certification is increasingly
sought after. Job vacancies can be posted
on ALCO’s website. Another option is outsourcing, either assignment-by-assignment or on a full-time basis, usually for
smaller companies.
How will these trends influence the
development of your association?
ALCO has just completed a survey of its
members that indicates a high overall level
of satisfaction. However, expectations of
the association are substantial, especially
with regard to disseminating information. The board of directors has already
decided to review fundamentally the quality, timeliness and interactivity of our site
and to develop a more up to date and
attractive formula for our newsletter. We
are examining ways to communicate more
rapidly on urgent regulatory matters and to
extend the scope of such information to a
greater number of members. We are looking to develop and improve initiatives such
as round-table discussions, other events
and working groups. We will continue to
share our experience of regulatory compliance issues with other industry associations such as the ABBL, ALFI, ILA, IIA and
ALRIM, as well as with the CSSF.
© 360Crossmedia/M.S.
Compliance
profession at full
stretch
Download
the magazine
Le Bulletin
LE Bulletin
PAGES 8-12
DoSSiEr
Risque réputationnel :
l’ennemi invisible
PAGES 12-15
ASSurAncES
La transparence
dans les assurances
information:
www.myofficialstory.com/jeannoellequeue
www.alco.lu
133
Associations
Rotary
Hope
ahead
thanks
to Espoir
en tête
“Following this event,
the Rotary Clubs of
Luxembourg presented
a check in the amount
of 22,000 made out
to “Espoir en tête”.”
When an association as prestigious as the
Rotary Club lends its name to a cause such
as research into brain-related diseases
in Luxembourg the outcome can be nothing
but positive.
134
Espoir en tête
“Espoir en tête”, which translates as Hope
Ahead, is a national campaign initially set up
by the French Rotarians who joined forces
with Luxembourg’s Rotary Clubs in early
2013. This campaign is in sup-port of brain
research and aims to raise funds earmarked
for a specific research project at the University of Luxembourg, conducted within
the Faculty of Science, Technology and
Communication. This project investigates
and analyses the inflammatory reactions
of the brain associated with neurodegenerative diseases such as Alzheimer’s or
Parkinson’s with the aim of developing
effective thera-pies. The research team
recently succeeded in identifying a new
feature of these cell types, representing a
considerable breakthrough in the research
into these diseases.
22,000 euros collected
In 2013, the film “The Fantastic World of
Oz” was premiered in several Utopolis cinemas with a share of profits being donated
to “Espoir en tête”. Cinema tickets were
sold for 15 euros, 8 euros of which went to
Luxembourg brain research. Following this
event, the Rotary Clubs of Luxembourg
presented a check in the amount of 22,000
made out to “Espoir en tête”. This will make
it possible to fund the testing and analysis
equipment necessary for its research work.
An on-going campaign...
This campaign was repeated in early
February with the screening of the premiere
of the film “Saving Mr Banks” in two cinemas of the Utopolis chain, in Kirchberg and
Belval with the much appreciated support of
Walt Disney Company and Utopolis. In June
2014, the second cheque will be handed
over for the donations collected in 2014
and a new campaign will be launched in
2015. The Rotary Clubs are hoping to bring
on board other major sponsors and thus
© ROTARY
ry
Rota
continue to raise funds for similar organisations. If you wish to support “Espoir en
tête”, you are welcome to make a donation
to the Association Luxembourgeoise des
Œuvres du Rotary.
information:
www.espoir-en-tete.lu
135
Associations
AERO-SPORT
AERO-SPORT
Luxembourg
aviation club
Hockey Club Luxembourg
On the ball!
If you ever feel like heading up above
the clouds, your journey starts
with AERO-SPORT.
Club
Founded in 1976
Hockey Club Luxembourg has been
around for almost 40 years. Although no
longer competing in any national competitions, it still provides hockey for all ages.
There is a thriving Corporate League comprising of 8 teams and a healthy youth
section with over 100 junior members.
International
For the past two years the club has
organised an International Mixed
Tournament with teams from Switzerland,
Netherlands, Belgium, France and
Luxembourg. Geneva won the first of
these and managed to retain their title,
albeit following a tightly fought final
against Royal Huy from Belgium. The
event is organised to raise funds for
local charities (Kriibskrank Kanner and
Haerzkrank Kanner) as well as to promote
Hockey in Luxembourg. Luxembourg will
136
© DR
For an international country like
Luxembourg, Hockey is the perfect
sport: a great mix of sport, social activities
and passion.
welcome back the teams from previous
years as well as a new team from the UK
on 12 July 2013.
Social
In addition to the sport, HCL also provides a “social function” within the
Luxembourg community bringing people
together from all kinds of back ground.
The club welcomes new members of all
levels and ages, for fun and fitness on
the field and plenty of social activities off
the field. It has an active “social committee”, organising events throughout the
year, including hosting the annual Luxury
Tournament. Luxembourg of course
also visits International tournaments
themselves.
information:
www.myofficialstory.com/leegodfrey
www.hockeyclubluxembourg.lu
Club
The flying school
AERO-SPORT asbl is the largest and most
active flying school in Luxembourg, with
over 650 members and a fleet of 12 aircraft (2 new Cessna 172SP, 3 Cessna 172,
1 Cessna 182, 1 Cessna TR182, 1 Cirrus
SR20 and 4 Piper 28-161). It offers a private pilot’s licence (PPL), night flight training
(NVFR) and instrument flight training (IFR).
The simulator
For a long time, ASBL AERO-SPORT
has wanted to expand its range of training courses, given its unique position in
Luxembourg. It has recently launched
an approved school, the Luxembourg
Flight Training Academy (LFTA), which
offers training up to airline pilot level. The
LFTA also has a simulator which improves
training quality and reduces costs. This
machine cost nearly 400,000 euros.
It takes two or three years for a private
pilot to meet the training requirements
assessed by the official examination.
It costs around 9,500 euros to obtain a
private pilot’s licence and around 45,000
euros to obtain an airline pilot’s licence. For
members and their companions, a number of «Fly outs» are organised on good
weather days. Recent trips that made a
strong impression include the North Cape,
a tour of Portugal and Spain, Turkey, Egypt
and Israel.
Begin the adventure
If you are tempted at the thought of landing in Luxembourg on a 4,000 metre runway next to airline planes, or landing on
a 750 metre runway in Southern Europe,
then come and start your adventure! The
school has a team of experienced instructor pilots, some of whom have flown up
to several thousands of hours. Our pilots
can be found at the clubhouse at Findel
airport. All enthusiasts are welcome!
Contact
Aéro-Sport asbl - LFTA asbl
Tél. : + 352 432 920
E-Mail : [email protected]
E-Mail LFTA : [email protected]
information:
www.myofficialstory.com/aerosport
137
Associations
Polo Club Luxembourg
The “Sport of
Kings” opens up
to the public
Club
The club
Created in 2004 at the initiative of Marc
Weber and a group of friends, the Polo Club
Luxembourg has over 150 members. The
club develops its expertise in this “sport of
kings” through coach Bernardo Podesta,
its Argentine spearhead, accompanied
by the “petisero” Daniel Gariador, who
trains and prepares horses for matches.
Bernardo takes advantage of his travels to
Argentina to import to Europe his “petisos”
these small Argentine horses renowned
world-wide for their prowess on the polo
field. A dozen or so have already arrived at
Merl, at the Ecurie de la Pétrusse.
Team spirit
The only equestrian sport played in teams,
polo is played in 4-8 periods of 7 minutes, called chuckers. To score, players
must pass the ball between two posts
138
using their stick. The large size of the field
- 275m long and 145m wide - requires a
perfect understanding between the four
teammates. This is a quality that the PCL
cultivates on the ground, but also during its
general meetings and end-of-year chuckers, which attract more than a hundred
people. This is an opportunity for everyone
to come together in a friendly atmosphere
and have a good time around an asado:
or barbecue!
The actions
From the old hands to the up-and-coming,
everyone is driven by a single desire: to
share their passion for this sport that is
little-known to the general public, but that
is becoming more popular every year. The
around fifteen young players who regularly
train here are a promise that great things
lie ahead for the club. The results prove
it, as this year the PCL year won the first
polo cup ever disputed between France
and Luxembourg, on the famous Chantilly
ground, the cradle of European polo. The
Luxembourgers have thus demonstrated
the know-how acquired over recent years.
Gaining in notoriety, the club plans to
© DR
Polo has been around for more than 2,500
years and was a sport played among Asia’s
nobility. Hence its reputation as the “sport of
kings”. The Polo Club Luxembourg opens its
doors to us.
expand with the construction of another
ground and new stables for the horses. For
enthusiasts, intensive courses are organised by Bernardo in Argentina. An opportunity to develop their game and their
techniques while immersing themselves
in a culture and a sumptuous setting that
give this sport its added attraction.
information:
www.polo.lu
www.myofficialstory.com/poloclubluxembourg
139
Associations
House 17
A new Club
in Luxembourg
Club
The address
House 17 is at 17 Rue du Nord, right in
the heart of the authentic old city district
of Luxembourg, close to the shops and
a variety of cultural activities. The Club
is part of a larger complex called Ilot D,
which includes apartments, offices and
shops. This ambitious project represents
an investment of 30 million euros, supported by the Old City Renovation Fund.
Club 17 was designed by the Luxembourg
architects Moreno & Associates.
The layout
With a view overlooking the city of
Luxembourg, elegant architecture and a
modern design, House 17 occupies five
floors of the main building, plus an annex,
a total of over 900 square metres. It has
two lounge bars and a gastronomic res-
140
taurant that can sit 40 people, which also
serves hot and cold desserts all day long,
to all the floors. House 17 also has conference rooms, private rooms, video equipment, a games room and a private library
for members and their guests.
The concept
House 17 is an everyday work space, a
special place where you can develop your
network, hold business meetings, or relax
at any time of day. The fundamentally private nature of House 17 means it offers a
special welcome and a feeling of belonging to its members and their guests, in
a strongly contemporary, cosmopolitan
setting, relaxed and elegant at the same
time. The aim is to offer a modern alternative to existing clubs. If anyone thinks that
Luxembourg is too small to have a club
of this kind, the project developers would
answer that the key to its success can
be summed up in three words: Location,
Location, Location.
information:
www.myofficialstory.com/house17
© DR
Luxembourg has witnessed the birth
of an original concept. House 17, the new
business social club, opened its doors in
November 2013, in the building of the former
Law Courts.
141
Associations
Golf-Club Grand Ducal
A passion,
not a sport
Since it was first opened, the Grand-Ducal
Golf Club has experienced many changes and
now has over 1,000 members. For the current
Chairman, Bernard Clasen, the Grand-Ducal
Golf Club is above all a family story.
Club
Tee Times,
the magazine
of Golf Club
Grand Ducal
142
Foundation
The story began in 1934 when the real
estate company, Société Immobilière du
Golf SA, was founded by a group of businessmen, led by Gaston Barbanson and
Max Lambert, the Chairman. His Royal
Highness Prince Felix of Luxembourg,
the husband of Her Royal Highness the
Grand-Duchess Charlotte, backed the
project by giving the Société immobilière
du Golf some land on the Findel plateau, in
exchange for 800 shares. Over the months,
the development of the Golf club aroused
more and more interest, in particular from
the City of Luxembourg and the Ministry of
Tourism, which gave their financial backing
to the Sports Association founded in 1936.
The Grand-Ducal Golf Club was born.
A family story
Max Lambert, the grandfather of the current Chairman, was the first Chairman of
the Golf Club on its foundation in 1936. His
view was that golf was a means of communication, a way to create social links
between people and countries. People
played golf because they had the common
desire to belong to a high-level social circle. In 1937, the club was involved in setting up the “European Golf Association”,
which now has 36 member countries, and
has had its head office at the Grand-Ducal
Golf Club ever since its foundation. From
1967 to 2004, Marco Lambert, Bernard
Clasen’s uncle, was the Chairman. Having
grown up on the greens, it was entirely natural that Marco Lambert would follow in the
steps of his predecessors, and he became
Chairman of the Golf Club in 2004. He is
keen to continue what was undertaken in
previous years, and to make the GrandDucal Golf Club part of the modern world,
without losing sight of the spirit in which his
uncle and grandfather had created it.
Future
On 2 June 2014, the 12th anniversary of
the EY International Fund of Golf Day was
held at the Grand-Ducal Golf Club, an event
that brought together golf fans with people who had never played the game. As for
the future of the Grand-Ducal Golf Club,
one thing is certain: the construction work
in progress will enable us to improve the
practice green even further, without altering
the initial architectural design.
information:
www.gcgd.lu
143
Associations
Fondation de Luxembourg:
Interest in philanthropy is growing rapidly
among wealthy individuals and families,
and the Grand Duchy’s foundation structure
helps them turn their aspirations into reality
quickly and easily, according to Fondation
de Luxembourg Director General Tonika
Hirdman.
rview
Inte
144
What challenges do international
philanthropists face today?
The means of giving is changing. It is not
anymore just about signing a check. We
are seeing people who want to engage
themselves actively in their giving; making sure the money is used efficiently and
to the right ends, that correspond to the
donor’s pretentions. This means that the
need for support and guidance is greater
than ever.
The problem is that many donors do not
know whom to turn to for assistance,
whether it be their lawyer, their wealth
manager or the tax adviser. Sometimes
they need advice in defining their giving
strategy. Very often they need support
in finding the right project and in terms
of supervising the implementation of the
project. They may also need help with the
logistics of running their foundation.
This is where Fondation de Luxembourg
comes in. We help them to identify a project that suits their interests and we create
and manage their personalized foundation
under our umbrella.
Why is Luxembourg a good place
to set up a foundation?
Since we were created by the Luxembourg
state five years ago, 45 foundations have
been established in Luxembourg and
many more are in the pipeline. Some
donors are attracted by the country’s political and economic stability. They view the
commitment to their foundation as a very
long-term one, so a stable environment is
a priority. Following the financial crisis, stability is something you can no longer take
for granted in some European countries.
Others are drawn by the ease of establishing a foundation here. In France, for example, it can take up to three years, compared
with just a few weeks in Luxembourg,
thanks to our straightforward and flexible
approach. Finally, Luxembourg has devel-
© DR
A European
gateway
to Philanthropy
oped a unique public-private partnership
combining a fully personalized philanthropic approach with the credibility of a
state-backed institution.
How does this benefit society at
large?
A good example is Akuo Energy, a
leader in renewable energy in France,
which decided to set up its foundation in
Luxembourg. The Akuo Foundation has
recently launched a project on the island
of Nosy Faly near Madagascar to assist
economic development with respect for
the ecosystem and involving sustainable
agriculture.
Another example is the CVC Capital
Partners Foundation, which applies the
“venture philanthropy” approach to help
disadvantaged young people in the countries where the firm is active. But there
are also numerous foundations set up by
families. A Finnish family, the Ehrnrooths,
“Following the financial crisis,
stability is something you can
no longer take for granted
in some European countries.”
Tonika Hirdman
finances scholarships for postgraduate
neurological students who work closely
with one of the world’s best known professors on neurological surgery in Finland.
A foundation with more local roots,
Fondation La Violette, established by the
Luxembourg Tesch family has launched
a project providing art therapy for cancer
patients in the Grand Duchy. This is something that did not exist in Luxembourg
before.
information:
www.myofficialstory.com/tonikahirdman
www.fdlux.lu
145
Fernand Schaber
President of Unity Foundation
www.unityfoundation.lu
www.myofficialstory.com/mixcity
www.unityfoundation.lu
www.team-rotary.org
www.asti.lu
www.sosve.lu
www.sosfaim.org
www.fmmr.org
www.etika.lu
www.fscl.lu
www.mecasbl.lu
www.lgsd.lu
www.iness.org
www.ibbl.lu
www.ongd-fnel.lu
www.ajsl.lu
www.ibbl.lu
www.cancer.lu
www.literaturarchiv.lu
www.amdds.eu
BGL BNP PARIBAS S.A. (50, avenue J.F. Kennedy, L-2951 Luxembourg, R.C.S. Luxembourg : B 6481) Communication Marketing Novembre 2014
More Associations
Pour mon entreprise comme dans ma vie privée,
j’aime explorer de nouveaux horizons.
Votre patrimoine est unique. Exprimons ses ambitions
grâce à notre gamme de services dédiés aux entrepreneurs.
La banque d’un monde qui change
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Plus d’informations sur bgl.lu/banqueprivee
146
147
150. D
aniel Rameau: The gourmet journey
152. Brasserie Schuman: Encore!
154. Philippe Bridard: The flavours
of “La Bergamote” in Luxembourg
156. Cyril Molard: A restaurant is a threepart dialogue
158. Christian Bau: Gourmet table with
a style all its own
160. Léa Linster: The Prophet (outside her
own country)
162. Thierry Duhr: As the seasons pass
© Shutterstock
164. More restaurants
Monarchy
Politics
Business
Associations
Gastronomy
Culture
Lifestyle
Shopping
148
149
Gastronomy
Daniel Rameau
The gourmet
journey
Daniel Rameau, President of Euro-Toques
International, is the owner of “La Rameaudière”
in Ellange. This is his journey so far.
© 360Crossmedia/A.K.
The traveller
Originally from the Vosges, Daniel Rameau
began his career in 1966 as a waiter in the
roadside café his parents owned in
Langres. “We were open day and night!”
The family moved to Longwy and Daniel
crossed the Luxembourg border to start his
apprenticeship at the Hotel Alpha. “It was
one of the best brasseries in Luxembourg.
I worked on the floor of the restaurant, and
it was here I started to take an interest in
what was happening in the kitchen.” He
met his future wife, a Luxembourg national,
and settled in the Grand Duchy. After a few
different jobs, he became Director of La
Réserve de Mullerthal at the age of 25, then
joined La Cravache d’Or, a Michelin-starred
restaurant in Brussels. This was a decisive
experience: “Working with Abel Bernard
and Michel Beyl gave me a desire to learn.”
150
Going solo
Having decided to go solo, he opened the
Hostellerie des Pêcheurs, in Remich, with
his wife. This was a success, and seven
years later he invested in Ellange railway
station and created La Rameaudière. “We
were in a lot of debt but we were very
quickly accepted by the locals.” And the
short journey from the city to the neighbouring village of Mondorf-Les-Bains is
definitely worth it! The menu changes with
the seasons and includes dishes such as
“fried langoustines in watercress sauce”,
“asparagus with citrus fruit”, or “Vosges
young pigeon casserole”.
Euro-Toques
Euro-Toques, of which Daniel is President,
defends the quality of produce, producers
and its 2,500 member chefs. The association has a permanent office in Brussels,
which works in close collaboration with the
European politicians. Its President is very
closely involved in its mission, and takes
part in a number of events throughout
Europe, not forgetting the trips he takes
with chefs from Luxembourg: “We like to
see for ourselves!”. These enthusiasts have
enjoyed dinners at El Bulli, Noma and a trip
to San Sebastian, a city with three 3-star
restaurants, and 16 stars in total. “A city of
180,000 people with 16 stars. There, we
discovered how such an incredible situation
is possible.” Luxembourg has not yet had
the final word.
information:
www.myofficialstory.com/danielrameau
www.larameaudiere.lu
www.euro-toques.lu
151
Gastronomy
Brasserie Schuman
Encore!
The concept
While walking through the Schueberfouer
fair in Luxembourg, Laurence Frank discovered the site of her future brasserie.
The restaurant was up for sale after several bankruptcies. Several buyers were in
contention, but she won the bid for two
reasons: firstly, she would be working
there in person and secondly she proposed an ultra-professional concept.
Laurence financed some major renovations which gave the location a new personality: a modern space with a spacious
lounge, open kitchen and a very light, main
room, facing a majestic theatre esplanade
which the restaurant uses as a terrace.
The atmosphere is definitely suited to the
neighbouring theatre. It’s a friendly brasserie where you can eat until 11pm, and
have a drink at any time.
The chef
According to Morris Clip, “The classics
never die”, especially when they are rein-
152
© sebastienheraud
Founded in September 2011, the Brasserie
Schuman immediately attracted a gastronomic
clientele from all backgrounds – lovers of the
theatre, lounges and terraces.
vented to suit today’s tastes. Having grown
up in a family of Belgian restaurateurs, he
has set himself the daring challenge of
combining originality with tradition in each
of his creations. He is keen to offer very
inventive dishes of the day, using fresh
produce, and does not hesitate to put
local dishes – kidneys for example – on the
menu. His specialities include the essential
Orloff Veal Schnitzel, prawn croquette or
grilled swordfish with asparagus risotto.
The terrace
The star of the show in summer is defi-
nitely the vast terrace, where it is possible to relax at any hour of day or night.
This year, the Brasserie Schuman has
added a large, rectangular bar, which will
remind many people of a beautiful beach
bar. As usual, Laurence has invented
some special cocktails. “People come
here for one reason: to have a good time,
in a delightful setting, with delicious food
and drink.”
information:
www.myofficialstory.com/brasserieschuman
www.brasserie-schuman.com
153
Gastronomy
Philippe Bridard
The flavours of
“La Bergamote”
in Luxembourg
© 360Crossmedia
to pass on his knowledge. The knowledge
I learnt from my masters (...) can be found
on your plate. This desire to pass on
knowledge has led to his cookery workshops at Cook & Relax.
The Chef and owner, Philippe Bridard, pays
tribute to his hometown of Nancy, creating
treasures inspired by his gastronomic
experiences in Luxembourg, his adopted city.
Nancy in the heart
of Luxembourg
After working in two Luxembourg eateries,
Bridard, aged 41, opened his own restaurant in 2011. Nostalgic for his hometown of
Nancy, his restaurant, La Bergamote, is in
Place de Nancy, an address he believes
154
was pre-destined. Undoubtedly the delicious connotations of its name are also a
good sign, as the reputation of the famous
bergamot candy from Nancy is wellknown in gourmet circles. Bridard is a man
who does not do anything by halves, and
the city of Nancy has been the inspiration
for his restaurant’s new decor. Let us take
you back a while in his astonishing journey,
to the beginnings of his expertise.
Passing on knowledge
Philippe Bridard’s long career started at
the age of six in his grandmother’s kitchen.
At the age of 20, his passion for creativity
led him to work with some Michelin-starred
chefs, such as Morot Gaudry or Faugeron,
from whom he learned a lot. He also
worked at Chinon and Auxerre, with Jean
Luc Barnabé, another exceptional teacher.
He did all kinds of jobs, performing both
exciting and laborious tasks, but always
gaining experience. Whether working with
gastronomic experts or a tyrannical chef,
or being the chef himself, everything was
an opportunity to learn, and he now wants
The recipe behind “La Bergamote”
So what are the ingredients of this expertise? First, you need a chef who is delighted
to be able to realise his dream in the ideal
location, a dream he shares with his wife
Dominique and his experienced team. You
need a friendly, relaxed, family atmosphere
and a cuisine that uses fresh market produce. You need a love of detail and innovation, plus appetising suggestions such
as low-temperature cooking, which retains
all the juice and flavour. Above all, you
need to listen to your customers. So at
lunchtime, you need dishes of the day,
weekly set menus, suggestions, and in the
evening, the full menu, which is what has
earned the restaurant a place in the Guide
Gourmand.
information:
www.labergamote.lu
www.myofficialstory.com/labergamote
155
Gastronomy
Cyril Molard
For Cyril Molard, chef at “Ma Langue sourit”
in Moutfort, cooking is not a solitary art.
It’s a dialogue between the chef, the product
and the person who eats it.
Reading a dish
Every dish that comes out of a kitchen
contains multiple messages. Like a good
wine or a good book, there are different
ways of appreciating it and expressing its
emotions. “You have to realise that very
few people will understand everything the
chef has tried to say. The plate illustrates
his way of looking at cooking, as he tries
to give a real identity to each of his dishes.
But deep down, he knows that for his
guest, the evening will be devoted to the
most elementary kind of gourmet pleasure. Chefs regularly invite each other to
appreciate the authentic pleasures of
good food.” The difficulty lies in continually
adapting to the seasons and deliveries.
“The menu changes every month and the
set menu changes every week, sometimes
every day, to cope with the requirements
of purchasing the best produce.”
156
Case study
We have taken a dish from the menu, at
random: “Blue lobster confit with savory,
almonds, tomatoes, courgettes in basil,
pesto and shellfish sauce.” Explanation of
the text: “The hero of the dish is the blue
lobster from Brittany. It’s so good that we
simply poach it for three minutes in aromatic butter, at a low temperature. Next,
we dry it and add a dash of fleur de sel
(refined salt). For the topping, a very green
purée of courgettes, basil with a dash of
mascarpone is perfect. It’s light and very
fragrant. A few girolle mushrooms,
almonds and courgette tips to please the
eye and the mouth. Quartered tomatoes
from Cailloux in Provence, with Pensato
lemon olive oil. The final touch: almond
milk and a few very strong, colourful
dashes created with the lobster carcass
and the tomato off-cuts. My message is
primarily a tribute to nature, to exceptional
products, and to the people who grow
them.”
Continuing the dialogue
“When I was involved in the opening of the
“Flocon de Sel” in 1997 (The only new
© 360crossmedia/O.M.
A restaurant
is a three-part
dialogue
3-star restaurant in France in 2012, Editor)
the chef Emmanuel Renaud insisted on
meeting every guest as they left the restaurant. I always follow this concept.
Gourmet food lovers in Luxembourg are
usually great travellers, which contributes
significantly to the discussion.” During this
meeting, some express their opinions, and
inquire on the origin of the products, the
chef’s background and the cooking
secrets. Sometimes the discussion turns
to another subject: “Why aren’t there more
2-star restaurants in Luxembourg?” The
conversation has only just begun.
information:
www.malanguesourit.lu
www.myofficialstory.com/cyrilmolard
157
Gastronomy
158
www.victors-gourmet.de
www.myofficialstory.com/christianbau
© Ruhl
The Bau style
Dining at the Baus’ is a salivating experience: you can either choose either the Carte
© Ruhl
Blanche decided on by the chef or a journey
of culinary discovery. The dining room team
led by Mrs Bau combines warmth with efficiency, youth with ultra-professionalism. On
the plate, you’ll discover the determination
of a chef that doesn’t make concessions:
the remarkable Tom ka Gai that’s completely solid, the eau de mer en perle
rehausse an artful salad. But what can you
say about compositions such as turbot
served in a variety of ways with cauliflower,
covered with a fine sliver of ‘hand of Buddha’
that hides an oyster? If you’ve already
Googled ‘hand of Buddha’ to see what it
looks like, hurry up and taste it: its lemony
flavour lifts this dish to the level of a masterwork – embodying a style that you’ll come
to appreciate over a few mouthfuls.
Victor’s Residenz-Hotel
Schloss Berg
© Ruhl
Three stars at 34
Christian Bau is the first to pay tribute to the
celebrated Harald Wohlfahrt, under whom
he learned the trade as a sous-chef at the
Schwarzwaldstube. “It’s like when the assistant to a famous football coach takes over a
team on his own,” he says. “Having been
their right-hand man, it stays with you.” In
1998, he took on the post of head chef at the
Gourmet restaurant at Victor’s ResidenzHotel Schloss Berg, with his wife taking
charge of the dining room. Within six months
they had won their first star and a second
followed a year later. “It was all a bit crazy,”
Bau says. “I was just 27 years old. Everyone
was coming here to find out our secret. In
reality, we cook with water, just like everyone
else.” The supreme accolade of the third star
took a bit longer, but not much – in 2005,
when Bau was 34.
Life among the stars
He speaks warmly of the camaraderie
between members of the three-star club.
“There are 109 chefs with three stars in the
world, and I must have had at least 60 of
them on the phone,” he says. But while
notching up stars was never an obsession,
Bau recalls the massive impact it had.
“The pressure ratcheted up,” he says. “I
could have just stopped, but I decided to
evolve instead.” He repeatedly travelled to
Asia and brought Japanese touches to his
style. “It’s a dangerous game,” warned the
Michelin Guide. But eight years later, he still
has the three stars, and what was classic
French cuisine in 2005 has become a
unique style, the ‘Bau.Stil.’ as his latest book
is titled.
information:
© Ruhl
Just a minute beyond the German border at
Remich, Christian Bau has moved beyond
classic French cuisine at the three-star
Gourmet restaurant at Victor’s Residenz-Hotel
Schloss Berg to develop a style all his own.
© Victor’s Heinz
Gourmet
table with
a style all
its own
© Victor’s Residenz-Hotel Schloss Berg
© Victor’s Residenz-Hotel Schloss Berg
Christian Bau
Comprising a spa, a swimming pool and
three restaurants, Victor’s Hotel Schloss Berg
is a top-notch five-star establishment. Built
in 1997, its architecture is borrowed from a
Mediterranean villa, perfectly integrated with
the castle, whose origins go back to the ninth
century. Most of the rooms look out over the
vineyards and the Moselle valley. The perfect
way to experience it is to arrive in the early
afternoon and enjoy a massage and the spa,
then have a rest before taking an aperitif and
sitting down to a memorable dinner in the
Gourmet restaurant.
www.victors-gourmet.de
www.myofficialstory.com/victors
159
Gastronomy
Léa Linster
The Prophet
(outside her own country)
Ferran Adrià
When he saw on my calling card that I was
from Luxembourg, the Catalan chef,
elected four times best chef in the world
for his restaurant “ElBulli”, exclaimed with
a grin: “Léa Linster!”. And he asked me
about her. At the Shanghai World Expo,
she was the star cook … at the Spanish
pavilion. She would have loved to concoct
dishes for visitors to the Luxembourg
Pavilion, but nobody came to seek her
services. And it isn’t just in Spain that she
enjoys this recognition: in Germany, Lea
writes a regular column for the famous
magazine Brigitte. People recognise her in
the street. Her travels also regularly take
her to the United States and the rest of the
world.
A pasionaria
Léa Linster comes from a family of food
lovers. Her maternal grandparents were
bakers and confectioners and her parents
owned a café and restaurant in Frisange.
160
It was therefore only natural that she nurtured a taste for cooking at a young age,
but unlike other children, Lea was driven
by this passion. At the age of 6, she developed her first dish and at the age of 15,
replaced her mother in the kitchen. An
innate talent for cooking that prompted her
in 1981 to give up on her law studies to
take over the family café and restaurant,
which she turned the following year into a
gourmet restaurant. She refuses to leave
Frisange where the “restaurant Léa
Linster” is a haven of peace in the
Luxembourg countryside.
The Pursuit of Happiness
A healthy mind in a healthy body is Léa’s
philosophy. This applies as much to her life
as to her cuisine. With her team, she
attaches great importance to the products
and is guided by a quest for taste, authenticity. She dislikes the way modern cuisine
strays away from and mutilates flavours
and sets out to share her love of the best
products to delight her customers. One
has only to consult the restaurant menu to
be immediately won over: the saddle of
lamb en croute, the free-range fattened
hen or roast fillet of sole are sure winners.
With the Bocuse d’Or, obtained in 1989,
she has had an opportunity to work alongside her idols: Paul Bocuse, Pierre
Troisgros or Joël Robuchon. But Leah
Contact
Restaurant Léa Linster
17, Rue de Luxembourg
L-5752 FRISANGE
Tel.: 23 66 84 11
© 360crossmedia/J.M.
The first and only woman to have received
the prestigious Bocuse d’Or in 1989, Léa Linster
has gone on to enjoy international recognition.
But no one is a prophet in their own country.
Her talent is only questioned in the Grand
Duchy.
makes a point of keeping away from the
star system and lives and works only for
pleasure. Her secret dream was to be a
theatre actress: she now has her own TV
show, “Leah’s Kochlust”, broadcast every
Thursday on Saarländischer Rundfunk. In
1996, Leah became the owner of a vineyard in Remich, a natural extension of her
garden and her love for fine cuisine.
information:
www.myofficialstory.com/lealinster
161
Gastronomy
Thierry Duhr
As the
seasons
pass
© 360crossmedia/S.E.
For the Michelin-starred chef
Thierry Duhr, a chef’s expertise
lies in the art of using his creativity
to showcase quality produce,
preferably local and always
seasonal.
Trust
The French chef Thierry Duhr is a member
of Euro-Toques and the owner of three
prestigious establishments in Luxembourg:
the Michelin-starred restaurant Le
Bouquet Garni, the “Bib Gourmand” listed
Les Caves Gourmandes and the Schéiss.
In his view, his main responsibility is to
ensure a continual supply of high quality
produce, all year round. “As far as possible, we try to work with local produce. I
use small producers, mainly from the
Greater Region of Luxembourg.
Negotiating with them helps to create the
trust that is essential to any partnership,
as the products they supply exist in very
limited quantities, and there are many
162
things that can go wrong between their
farms and our restaurants.”
Respect
For Duhr, the approach he takes with small
producers also applies to products from further away: “We respect the seasons for fish,
vegetables and fruit. A seasonal product is
still very affordable and it’s much more difficult to turn a sardine or a mackerel into a
great dish. However, there is still an art to
cooking them. Turbot, crayfish and lobster
are much easier to prepare, as they are
products are noble in themselves. However,
over-fishing by large boats will gradually see
the disappearance of some species of fish.
The same goes for meat. There are more
and more small breeders who offer sound
products, often the result of less-intensive
farming or breeding. I predict that they will
have a great future!”
Healthy eating
The star of the plate is the product.
“The art of cooking is to enhance it. That’s
all. These days, people are conscious about
their well-being and about healthy eating.
Knowing that our products come from local
producers is important to them. In a difficult
economic climate, it’s important to provide
practical solutions. However, I would like our
customers to be a little more curious about
discovering different flavours, textures and
tastes, without any pre-conceived ideas.”
For this reason, Thierry Duhr’s three restaurants offer attractive prices and varied set
menus: at the Bouquet Garni you can have
lunch for €40, and in the evening there are
set menus from €65 to €85, with a choice of
different dishes. Les Caves Gourmandes
has a lunch menu for €21 and an evening
menu from €35 to €50, created with undeniable expertise and quality. “The objective
is that anyone can come through the door
of a top restaurant and find a warm welcome, quality service and wonderful food.”
information:
www.scheiss.lu
www.lebouquetgarni.lu
www.caves-gourmandes.lu
www.myofficialstory.com/thierryduhr
163
Gastronomy
More
restaurants
Brasmsearnie
Schu
La
Bergamote
Les R
oses
La Rameaudière
Le Clairefontaine
De Jangeli
Lea Linster
Um Plateau
Ristorante Favaro
Le Bouquet Garni
information:
164
r
Windso
Ma Langue Sourit
Get your copy of Spoon #1
for free.
www.spoon.lu
www.euro-toques.lu
165
CULTURE
Abbaye de Neumünster www.neimenster.lu
Art Galleries www.gallerylux.com
The Grand Theatre of Luxembourg City www.theatres.lu
History Museum of Luxembourg City www.mhvl.lu
Rockhal-Centre of Amplified Music www.rockhal.lu
© DR
Trifolion www.trifolion.lu
Monarchy
Politics
Business
Associations
Gastronomy
Culture
Lifestyle
Shopping
166
167
Culture
MUDAM
The contemporary
citadel
its furniture and café, where visitors can
take a break between exhibitions. Far from
being regarded as the temple of elitism,
within its walls the museum also hosts
works by designers from the worlds of fashion, graphic design or decoration. Just
hang around the entrance for a few minutes
to get an idea of the range of motivations
that attract visitors to the Museum: curiosity, thirst for culture, introduction to contemporary art by a friend, a quest for inspiration
… Diehard fans cannot help but come back
every week to get their emotional fix.
Luxembourg has made a name for itself in the
world of contemporary art. Since 2006, the
MUDAM, the Grand Duke Jean Museum of
Modern Art has been a unique hub of activity.
M
From Vauban to Ieoh Ming Pei
Created by the Grand Duchy to pay tribute
to Great Duke Jean on the 25th anniversary
of his reign and built on the old Vauban citadel, the MUDAM stands between the Old
City and Kirchberg. Though embroiled in
controversy for a while – as is often the case
with projects of this magnitude – the Great
Duke Jean MUDAM is today a universal
favourite. Designed by Ieoh Ming Pei, to
whom we owe the pyramid of the Louvre in
Paris, the building follows the contours of
the Thüngen fort on the site on which it is
built. But unlike the original building, the
MUDAM is not an impenetrable fortress! To
the contrary, it is designed as a meeting
place for modern art and a mosaic of visitors, from the children participating in the
“MUDAMINI” programme, the adolescents
heading for Art Freak Sessions ‘and adults
attending the Mudamis events.
Modernity and nothing but
modernity
Everything in the MUDAM breathes modernity. Its collections, its architecture but also
168
The Pompidou effect
With the recent opening of the Pompidou
Centre in Metz, some questions have been
raised about the impact this will have on the
success of the MUDAM. Time has shown
that the two sites are complementary rather
than competitors. They manage, in their
different ways, to attract a public that is not
necessarily familiar with modern art, while
at the same time saving art enthusiasts a
long trip. The Philharmonie managed the
same feat in the world of music. The draw
of the Pompidou museum in Metz can only
have positive repercussions for MUDAM
and Luxembourg, which is constantly
developing its tourist attractions to cater for
an increasing number of visitors.
© 360Crossmedia
m
useu
information:
www.myofficialstory.com/mudam
www.mudam.lu
169
Culture
Grand Ducal Palace
Follow
the guide!
Germain Birgen has been a guide at the Grand
Ducal Palace for 25 years. In his free time, he’s
a banker... Guided tour.
The official residence
The Grand Ducal couple live in Colmarberg,
but the Palace is their official residence.
This is where the Grand Duke works and
receives guests. Built in 1573, the building
was first used as the City Hall, then as the
seat of the prefecture of the Département
des Forêts under the French administration,
and finally as the headquarters of the
Luxembourg Government. The accession
of Grand Duke Adolphe in 1890 marked the
beginning of the exclusive use of the palace
by the monarch and his family. Although the
building belongs to the State, the objects
inside belong to the family’s assets. Tours
are organised during the summer, but you
must remember that the Grand Ducal
Palace is not a museum, it’s the State
headquarters!
The ground floor
The first surprise as you enter the porch is
that the path under your feet is made of
wooden cobblestones. This is a very strong
surface which is also less noisy. On the left,
the weighing room was so called because
of the scales kept there for a long time,
170
which the peasants used to weigh their
crops. It now holds a collection of the personal weapons of Grand Duke Jean. The
guardsroom, meanwhile, was turned into a
tavern during the Nazi occupation. As you
go up the staircase, you pass some imposing green Malachite vases given as a present by Tsar Nicholas II.
The first floor
The tour continues in the Banqueting room.
It is from this room that the Grand Ducal
family appears on the balcony. Of the many
splendid portraits on the walls, two were
never finished, as the artist, Ricardo
Macarrón, died before he could finish them.
The plainness of the interior is enlivened by
touches of pure gold on the pillars. In the
“pink” room, Mr Birgen tells us an interesting anecdote: Adolphe de Nassau
Weilburg was a Protestant. When his
son, William IV, got married, the Pope
gave his blessing to the union with the
Catholic Marie-Anne, Infanta of Portugal,
on condition that any daughters the couple had would be raised as Catholics.
They had six daughters and no sons, so the
family has been Catholic ever since. In the
imposing Kings Room, which retraces the
history of the monarchy, the Grand Duke
receives Heads of State. The tour ends with
a look at the Grand Duke’s study and the
Palace dining room.
information:
www.monarchie.lu
© DR
ce
Pala
171
Culture
Ernster
The spirit of books
One family, one profession, one location.
This is the story of the Ernster family, four
generations of booksellers in Luxembourg.
pany
Com
Once upon a time
1889. A male teacher and editor/publisher of
school books had the idea, due to the proximity of a local secondary school, of making
a few alterations to the ground floor of the
family home in order to set up a bookshop
and stationers. Back then, the pages were
delivered loose and the family members
would sew the exercise books by hand.
When the wars came, the grandmother and
her son were deported. A loyal employee
stood in at a moment’s notice and stayed for
48 years. The shop survived. The arrival of
teaching material in the 1960s led to a boom
in business. The next twist in the tale came in
1969, when the entire district was demolished! The temporary relocation meant a loss
in turnover. After the district was rebuilt, the
shop rose from the ashes in September 1971.
A new page was turned.
The next chapter
Bigger and better. The world of the bookshop
changed, and there was a boom in
Luxembourg culture. Fernand Ernster, the
grandson, entered centre stage in 1984. New
companies were created, new outlets opened
and shares were bought out within the family.
The sites focused on shopping centres (Belle
Etoile in 1988, Center City Concorde in 1999),
attracting a wider clientèle, then on town cen-
172
tres (Erny in 2008 and Esch in 2009). Each
location specialised in a different kind of literature, be it German language, French language, fun, creative or aimed at women.
Fernand was the first bookseller to have a
website, and appointed a salesperson to distribute educational material to nurseries and
schools. Today, he and his wife Annick are the
sole shareholders, and the couple make all the
strategic decisions. Cautious expansion is the
watchword, and tradition is cultivated by welcoming progress.
The firm is renowned
for its know-how
and has won many
different awards.
An endless story
Ernster employs 60 staff today, some of
whom have been with the company for 30
years, and all of whom are equally passionate.
This is fundamental, even when the book
world changes with every passing generation. The firm is renowned for its know-how
and has won many different awards. Notably,
the bookshop was awarded the “Women in
Business” prize in 2007 by the Ministry of
Equal Opportunities to recognise its involvement in the positive action programme.
Gender equality, consideration for working
time and difficulty, and internal audits contribute to a genuine social policy. The desire to
continue the adventure lies at the heart of the
company, and the history of this family will be
written in many more pages to come, perpetuating the spirit of books.
information:
www.myofficialstory.com/ernster
www.ernster.com
Fernand Ernster
173
Culture
Mr HUBLOT
This year, a French-language Luxembourg
film produced by Laurent Witz and Alexandre
Espigares was awarded the Oscar for best
short animated film. A look back at a highlydeserved reward.
ma
Cine
174
Chronicle of an atypical
character
This is the story of Mr Hublot who lives in
an absurd world populated by patched,
sewn up, partly mechanical characters
and oversized vehicles, a world where
gigantic mechanics and an obsession
with reclaimed materials reign supreme.
With his fidgeting and eccentricities and
fear of the outside world, the reclusive Mr
Hublot hates change and contingencies.
He has found a very effective answer to
this: he never leaves home! The arrival of
the dog Robot Pet will shake up his habits
as he has no choice but is forced to live
together with his very invasive new
companion.
Deciphering the film
The film was written and directed by
Laurent Witz, a producer from Lorraine
with a passion for cinema and 3D. It took
three years of work to complete this animated short film and Stéphane Haleux, a
© ZEILT productions - WATT frame - Arte France
The keys
to international
success
Belgian sculptor, was entrusted with the
difficult task of bringing Mr Hublot to life.
As 3D calls for meticulous attention to
detail, the main goal of the director was to
keep intact the poetry of the film that
makes the character of Mr Hublot so
endearing. What makes the success of
this film so special is the fact that it was
entirely produced and manufactured in
Luxembourg by the ZEILT production
company, created in 2007 by Laurent
Weitz.
The Awards
Since June 2013, the film has been
awarded no fewer than 20 international
prizes such as the International 3D
Society, Irvine International or Film
Festival. At the Oscars in Los Angeles
and, up against an animated short film
produced by Disney, Mr Hublot won over
the Oscars jury. The Grand Duchy is
proud to receive so many honours from
the film world. After the home-grown film
Ernest and Celestine, which won the
award for best animated film at the 2013
Caesars ceremony, Luxembourg’s animated film industry has once again captivated an international audience.
information:
www.myofficialstory.com/mrhublot
175
Culture
EWUB
By acquiring, restoring and carefully
maintaining Villa Foch, one of the most
beautiful buildings in the capital, East-West
United Bank has made a valuable contribution
to the preservation of the Grand Duchy’s
architectural heritage.
it
ortra
P
176
S
trolling the streets of
Luxembourg City, one can be
dazzled by the stylish yet
charming urban landscape of
beautiful parks and classic buildings. The
elegance of the capital’s 19th century mansions continues to catch the eye well over
a century after they were built. Take a walk
along Boulevard Joseph II, and gaze
through the delicate patterns of the forged
iron fence of number 10 at a magnificent
architectural gem – Villa Foch.
Following the industrial revolution, which
opened up opportunities for people from
different social classes, successful entrepreneurs aspired to join the alluring world
of aristocratic circles, so they began to fulfil
their aesthetic ambitions in the artistic
sphere – a development that prompted the
emergence of the art market.
Many invested profitably in the works of
little-known artists who later received
worldwide acclaim. Paul Gauguin’s 1891
La Orana Maria was turned down as a gift
by the Luxembourg Museum in Paris,
which regarded the artist as unworthy of a
place in its collection. Two years later, it
was purchased by a private collector for
the then princely sum of 2000 francs.
By contrast, when building exquisite family
houses, wealthy businessmen often
sought the services of famous modern
architects of their time. Built by the young
architect Charles Mullendorff in 1891, Villa
Foch is a vivid example of the architecture
of that period.
In the second half of the 20th century many
magnificent buildings in Luxembourg City
fell into disrepair and were demolished.
However, in 1976 Villa Foch, together with
an adjoining park, was acquired by EWUB.
Aware of the building’s cultural heritage,
the bank’s management put an immense
effort and resources into restoring and preserving the mansion.
While it has been adapted to the requirements of cutting-edge technology, the
inherent stylishness and historic character
of the villa’s interior have been left
untouched. Today the furnishings of this
elegant mansion reflect the bright character and delicate taste of both its former and
present-day owners.
Mullendorff’s magnificent creation has
become an integral part of the company’s
image. Its luxurious boardrooms create a
unique atmosphere of exclusivity and set
the tone for trusted dialogue with clients
and partners.
In the 21st century, art is playing an
increasingly important role in the financial
market as it often forms an integral part of
© 360Crossmedia
Noblesse oblige
both personal and corporate investment
portfolios. In a world of new banking products and services that are individually tailored and increasingly complex, EWUB is
well equipped to act as the architect of
your personal savings and help you turn
your most cherished dreams into reality.
information:
www.ewub.lu
177
Culture
Axa Art
The key role
of insurance
in the Luxembourg
Freeport
basis. As an insurer, this is an important part
of the risk assessment.
Luxembourg’s Freeport recently
opened. I assume that it’s a major
opportunity for AXA ART? What
kind of problems do you have to
178
face while insuring stored works ?
Actually, we have closely worked with the
Luxembourg Freeport team since its conception, to share our insurer experience. The
warehouse’s safety conditions have been
audited and they fulfill the highest standards.
Art insurance has to comply with the same
rules wherever the policy is purchased: a
safe storage place for the works and clarity
about the holding of the insured pieces. Free
ports are managed in an extremely professional way, and they profit from very high
safety standards that we audit on a regular
How do you operate in
Luxembourg particularly?
In Luxembourg, AXA ART is represented by
AXA Luxembourg. Its chief executive officer,
Marie-Hélène Massard considers AXA ART
as a natural addition to AXA Luxembourg
product range, which provides solutions for
its high-net-worth customers. The teams
work in perfect coordination with our art historian, Stephanie Breydel.
information:
To know more about AXA ART: www.axa-art.lu
© Photography/Jan Baldwin. Art direction/rhodesandproctor
rview
Inte
What is AXA ART?
AXA ART is a subsidiary of the AXA Group,
and the world leader on the art and “art de
vivre” insurance market. We share our
expertise with every art market player: art
dealers, museums and temporary exhibitions, corporate collectors, as well as private
collectors. We have designed a range of
tailor-made products dedicated to the HighNet-Worth Individuals, our privileged customer base, to protect their art objects, wine
cellars, classic cars or residences, and our
main focus is to offer them a state-of-the-art
quality of service.
© Franck Dunouau
In the context of the Luxembourg Freeport
opening, we have met Mrs. Sylvie Gleises,
Managing Director of AXA ART FRANCEBENELUX- MIDDLE EAST who tells us
about AXA ART and its strategy, in particular
in Luxembourg.
What are your obligations in terms
of insurance when you operate in a
free port?
For years, the customs, the State where the
free port is located and the insurer have
been clearly stated in free ports. Each customer must also be up-to-date in his inventory, but this is the case of every good
collector. We are always committed to have
a precise vision of the pieces we insure, in
order to accurately assess the risk and to
offer the right price. Of course we also ask
our customers for detailed lists. Our
approach has always been based on transparency and it will remain our priority.
179
Culture
BDO
TAX is in the air
How the tax legislation will adapt to the transactions carried
out within the Luxembourg Freeport.
© BDO
The official inauguration of Luxembourg
Freeport will be synonymous of - the more
discrete – first practical applications of the
VAT suspensive regime related thereto. In
the background of this state-of-the art new
facility, Luxembourg tax legislation provides for
attracting features that will certainly contribute
to the success of the platform.
Erwan
Loquet
Tax Partner
BDO
rt
Expe
180
VAT legislation
Value Added Tax generally applies to any
transaction involving goods or services.
The European legislation is drafted in such
a way that VAT generally follows the route
followed by the goods that are traded by
individuals or taxpayers. In other words, a
storage and trading platform such as LFP,
based in Luxembourg, would theoretically
create additional VAT and/or compliance
costs in relation with the goods entering
the LFP or stored therein. This is the reason
why, as early as October 2011, Luxembourg
introduced under Article 56sexies
Luxembourg VAT Law (hereafter “LVL” or
the “VAT Law”) and Circular 755 dated 15
September 2011, a VAT free zone regime,
more specifically, a VAT suspensive regime
for specific supplies of goods.
According to this regime, the supply and
intracommunity acquisition of goods which
are intended to be placed in a free zone or
in a free warehouse are VAT exempt (“zero
rate”). This exemption is applied until the
goods covered by this legislation are
released for consumption, either on the
Luxembourg territory, or are further delivered in the context of an intracommunity
delivery or an export. This means that no
VAT will be due when the goods enter the
VAT free zone, no matter if this entry takes
place following a local supply of goods, an
intracommunity acquisition of goods or an
import of goods.
In addition, under certain circumstances,
transactions in relation with these movable
goods including ancillary services relating
to the storage of the goods or performed
within the VAT free zone (transport, maintenance, valuation, packaging, sales…)
also benefit from the exemption until the
goods leave the zone.
Suspensive?
The Luxembourg VAT legislation only provides for a suspension of the VAT, only a
temporary relief of this tax. In contrast to
what might have been said or written, such
a regime does not create a “no-rule” zone,
where VAT would be evaded, but simply
corresponds to a combination of existing
European VAT and customs legislations
that provide for such a suspension. Imagine
a tunnel: when they enter and along their
route within this tunnel, goods are not
affected by the VAT. However, when exiting
the tunnel, when released for consumption, goods reenter the standard VAT and
customs systems. Under the responsibility
of the one operator who releases the
goods, VAT and any other applicable taxes
are levied in the normal way in accordance
with the standard VAT rules applicable to
local supplies, intracommunity supplies or
export of goods.
A regime under control
The special VAT regime will be primarily
managed by pre-authorized operators
(responsible towards the VAT and Customs
Authorities for the correct application of the
regime and the follow-up on the goods
being traded within the free zone), direct
tenants of the LFP, and who will be required
to maintain detailed inventories of the
movements and physical locations of the
goods. In addition, Customs Authorities will
be physically present at the LFP, with the
right to inspect the goods being stored.
Interestingly, the licensed operators can
also, under certain circumstances, act as
tax representative on behalf of their customers, when the latter are neither established nor registered for VAT in Luxembourg,
which will relieve them from any VAT registration liability in Luxembourg.
What is the benefit for the
end-users?
The end-customers of the LFP will essentially be made of private and public collectors, museums, investors, art galleries or
investment funds. Apart from their requirements for high-end storage and related
services, how will they benefit from this
suspensive regime? Let’s take the case of
an investment fund whose portfolio is
essentially composed of high-value commodities. Any investment or disinvestment
potentially attracts VAT and possibly other
indirect taxes, which shall not only be
administered but might also pollute the
correct valuation of the portfolio. The VAT
regime introduced by the law of 2011 will
allow the fund to disregard the VAT impacts
on its investments/disinvestments as long
as the goods remain stored in the LFP. The
same applies for a Family Office for
instance, in charge of the administration of
the investments in antiques, works of art,
or precious metals on behalf of its clients.
How will this contribute to the
development of Luxembourg as
the location of choice for the art
market?
Many parameters tend to favor the development of a particularly attractive environment for art-related finance or business
activities in Luxembourg. The tax environment is only an ancillary element in this
trend, but one might find significant that, a
few weeks before the official opening of the
LFP, a draft legislation submitted by the
Ministry of Finance on the 28th August
2014 will considerably amend the VAT legislation applicable to public auctions.
Combined with the (newly introduced)
application of a reduced (8%) rate to
imports of antiques and collector’s items
(works of art were already subject to this
reduced rate), this measure complements
the favorable tax framework that will apply
in 2015 to art-related transactions.
information:
www.bdo.lu
www.myofficialstory.com/erwanloquet
181
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AGRINERGY,
promoting food
self-sufficiency
and traditional
cultures
Invest IndustrIal:
Turning
DucaTi
arounD
© Shutterstock
Aquasud www.vert-marine.com
Beauty Centre Annette Weber-Krier www.weber-krier.com
www.coque.lu of Hull
Hotel Alzinn www.hotelalzinn.com
Hotel Le Royal Luxembourg www.leroyal.com
Hotel Saint-Nicolas and Spa www.saint-nicolas.lu
Hotel Simoncini www.hotelsimoncini.lu
Good idea www.goodidea.lu
Käerzefabrik www.kaerzefabrik.lu
Le Place d’Armes www.hotel-leplacedarmes.com
Miazia www.miazia.lu
OA6, health and well being www.oa6.lu
Park Hotel www.parc-hotel.lu
Pur Zen www.purzen.lu
Real Estate Agency Rockenbrod www.rockenbrod.lu
Relax Max www.relax-max.eu
Roche Bobois www.roche-bobois.lu
Studio Mick, artistic design www.studiomick.com
The Seven Hotel www.thesevenhotel.lu
The Thermes www.lesthermes.net
UM Plateau www.umplateau.lu
Urspelt Castle www.chateau-urspelt.lu
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184
185
Lifestyle
François Valentiny
Valentiny’s offices are in Remerschen, a stone’s
throw from Schengen, and a few metres from
the house of his birth. Highly symbolic for a
man who is continually leaving and returning,
full of new ideas.
it
ortra
P
186
A function
When he thinks back to his student days in
Vienna, François Valentiny remembers being
very sensitive, like a dry, empty desert. He
thoroughly absorbed Austrian culture and its
architectural heritage. His career began with
a number of projects in Luxembourg, but he
always kept a foot in Austria, and then placed
another one in Berlin. For fifteen years, he
moved between this triangle. Then he had a
family and lost some of his flexibility, but the
growth of his business gave him the freedom
to work everywhere, on some very stimulating projects. In his eyes, an architect is not
independent of society. He must above all
deal with a client, who sets the budget and
the requirements: you need to find a solution
for getting from A to B while keeping to the
deadlines. However, beyond these essential
imperatives, the architect can begin to ‘stir
things up’ by imagining detours and options
to transform a brief into a personal event.
“That’s when it starts to get interesting!”
A starting point
His offices are in Remerschen, next to his
house. He was also born in the village, so it’s
his absolute starting point. He loves his country, which he compares to the City States of
Ancient Greece, where society worked well
and everyone knew each other. He lives here,
surrounded by many friends, but his real life
is elsewhere. He is always leaving, and always
coming back. He loves this way of living, and
says that if he were not able to leave, he would
feel suffocated. He needs the friction and
excitement of other places.
A style
His designs include the Luxembourg pavilion
for the Shanghai Universal Expo, and the new
KPMG offices in Kirchberg. A unique style.
He is not able to work in the city, as it lacks
calm; he prefers to design alone, concentrated, even at the weekends. Isolation helps
him to be closer to the project and the culture
of the place, to be closer to people and avoid
mixed influences. If he had one criticism of his
country, it would be that while it has a lot of
courage beyond its borders, it has a tendency
to clip the wings of initiatives launched at
Perspective
Luxembourg is very much appreciated all
over the world. Larger countries love small
countries like an older brother loves his
younger brother. The fact that we have managed to survive, and that we have renowned
politicians among our illustrious citizens, and
have played such a role in European construction, is a great asset. A small country
does not do any harm, it is not aggressive.
The Chinese remember that in 1910, all the
European forces were present in Shanghai,
except for Luxembourg!
“The most
courageous
buildings that
Luxembourg has
allowed me to build
have been in other
countries.”
François Valentiny
The New World
Whilst he has always had close contacts with
China, François Valentiny is currently working
on a most unusual project in Brazil. It all
began with the Mozarteum, a concert hall in
Salzburg which he renovated in 2005. He
made contacts during the music festivals, in
particular with a Brazilian Countess. He visited her in Brazil a few years later, and the idea
of a festival in Bahia was formed over dinner.
Starting with pencil drawings, and after many
telephone calls, they located a canyon where
an open-air auditorium will be built out of
wood. It’s bound to be a success, as there
are only two concert venues within a 1,000
km radius. The CEO of Occitane en Provence,
a friend of the Countess, is funding the concrete part of the construction. Here’s to the
next festival!
An eulogy
on departure
(and return)
home. “With all its assets, if Luxembourg had
the same courage at home, it would be world
leader in many sectors!”
information:
www.myofficialstory.com/francoisvalentiny
www.hvp.lu
187
Lifestyle
Contact
© Sofitel
FARE S.A.
Address:
MASSEWEE, 2
L-6186 GONDERANGE
Tel.: 621/29 49 49
FARE S.A.
Luxury
Properties
To support its most demanding clients in their
search for exceptional real estate properties,
the agency FARE S.A. has launched a “Luxury
Properties” department.
The rare pearl
Recent tax legislation has encouraged a
growing number of investors to settle in
Luxembourg. However, standards in this
188
sector vary from one city to another. An
Investment Fund manager from London
might for example be looking for a 300
square metre city centre duplex, while the
description of a dream home for a Middle
Eastern family might be more like what
someone from Luxembourg would
describe as a “Château”. It must be
remembered that these unique properties
are very rare in Luxembourg.
are included in this cost. One client wanted
to install bulletproof windows; another
wanted to build a golf course in his huge
garden. Some have been convinced by
renowned architects to change the layout
of the interior by moving all the walls. To
support this process, FARE S.A. has
selected local companies who are capable
of providing an exemplary level of
service.
The finishing touches
Experience shows that the most demanding buyers invest up to 100% of the purchase price in renovations and interior
fittings. Interior decoration and security
The “Luxury Properties” concept
FARE S.A. acts as an intermediary
between owners of very luxury residences
and the potential buyers, some of whom
are represented by their trustee or their
lawyer. An integral part of the Luxembourg
social network, FARE has also been a
partner of Jumping de Roeser for many
years. It focuses its attention on farms,
spacious apartments or very well located
properties. A website has been created to
show a few examples, but most of the
properties are exchanged in a few minutes
over the phone, as demand greatly
exceeds supply. One thing is certain: discretion is assured.
information:
www.luxuryproperties.lu
www.fare.lu
www.myofficialstory.com/fare
189
Lifestyle
“There are three residential
areas, La Selva, La Vinya
and the most recent,
the lakeside La Balca.”
PGA Catalunya Resort
An idyllic residence
location, with golf
and Barcelona
on the doorstep
World-class facilities
The financial crisis may have hit Spain hard
but in the heart of Catalonia, close by the
historic city of Girona, the PGA Catalunya
Resort complex has proved that there is still
strong demand for luxury housing in an idyllic
location. First established in 1999 by the
team who created Portugal’s award-winning
Quinta do Lago development and owned by
Irish entrepreneur Denis O’Brien, PGA
Catalunya Resort has benefited from a €70m
initial investment in infrastructure including
two world-class golf courses designed by
designed by Spanish legend Angel Gallardo
and Ryder Cup star Neil Coles. The Stadium
Course, recently voted the best in Spain for
the third year in a row, hosted three Spanish
Opens, again on may 2014. It is complemented by a gentler Tour Course.
190
© PGA CATALUNYA RESORT
In the heart of Catalonia, between Girona,
Barcelona, the Costa Brava beaches and the
Pyrenees, PGA Catalunya Resort is offering
luxurious villa and apartment accommodation on
the doorstep of its pair of top-class golf courses.
Natural setting
The amenities also include a Golf Clubhouse,
a Membership Clubhouse with private
lounge, restaurant, and a Residents Club for
property owners with indoor and outdoor
pools, tennis courts, fitness centre and treatment rooms. The luxury property development comprises a low-density project set in
300 hectares of mature woodland. Private
villas and apartments are designed to blend
with their natural surroundings, finished with
open-plan layouts and glass features that
showcase the superb setting, looking out
over fairways, forests and the nearby
Montseny hills. There are three residential
areas, La Selva, La Vinya and the most
recent, the lakeside La Balca. Buyers can
choose between buying a plot and building
their own villa, using PGA Catalunya Resort
project management, and finished properties, all of which follow the resort’s architectural concept.
International access
Prices range from apartments at €365,000
to semi-detached villas from €710,000, and
reflect the resorts appeal to a mix of full-time
residents and vacation homeowners, as well
as investment buyers. Buyers enjoy all the
resort’s facilities, including the golf courses
and Residents Club, and a partnership deal
offers access to the Santa Marta Beach
Club. The on-site team offer full property
management including concierge services
and an optional rental programme. With
Girona and its international airport just 10
minutes away, cosmopolitan Barcelona less
than an hour by car (less by high speed train),
and the Costa Brava’s beaches and picturesque towns close at hand, PGA Catalunya
Resort offers access a wealth of nearby cultural and leisure attractions. Not much further
away are Perpignan over the French border
and winter skiing opportunities in the
Pyrenees. And the region also offers a wealth
of gastronomic delights, with restaurants
boasting 22 Michelin stars within a 50-kilometre radius of the resort.
information:
www.pgacatalunya.com
191
© DR
Abitare www.abitare.lu
Bijouterie Kayser-Reinert www.kayser.lu
Bijouterie Léa www.bijouterie-lea.com
Bijouterie Molitor www.molitorlegal.lu
Bijouterie Wagner www.bijouterie.lu
Casa Nova Contemporain www.casanova.lu
Cathy Goedert www.cathygoedert.lu
Confiserie Namur www.namur.lu
Ernster-L’Esprit Livre www.ernster.com
Exki www.exki.com
Eric Bompard www.eric-bompard.com
Eug. Hoffman www.eughoffman.lu
Goerges Rech www.georges-rech.fr
Gucci www.gucci.com
L’Epicerie www.lepicerie.lu
La Casa Del Habano www.lacasadelhabano.lu
Optique Moitzheim www.optique-moitzheim.lu
Optique Thill www.optiquethill.lu
Vinoteca www.vinoteca.lu
Monarchy
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Business
Associations
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Shopping
192
193
Shopping
Windeshausen
Jewellers
from father to son
The opening of their shop in Bertange
marked a milestone for Jean and Lionel
Windeshausen. They apply the same method
that has secured their success so far and
that can be summed up in a few words:
welcome, service and innovation.
ate pieces that suit the personality of their
future owners. Jean and his son combine
their talents: the art of listening, a
long-standing experience and a strong
dose of boldness. The jewellery can be
admired from different angles, each
revealing a new dimension. Recognisable
at first glance, they have character, like the
women who wear them. One word in particular perfectly catches their aura:
exception.
A brand…
It took nearly three years of work for Jean
Windeshausen to create his brand. A relatively short time, since it meant developing a concept and rolling out the production
capacity. With his son, they set themselves
no limit and want to become a reference
of know-how “Made in Luxembourg”. Their
success can be captured in one sentence,
which has become Mr Windeshausen’s
motto: “Others may try, I dare”. Patrons
clearly have nothing to worry about:
Windeshausen has a sparkling future
ahead of it.
information:
Luxembourg :
• BERTRANGE, City Concorde
Tél. : (+352) 274 495 91
• ETTELBRUCK, Grand-Rue
Belgique :
BASTOGNE, Grand-Rue
www.windeshausen.lu
An alloy…
Specialising in diamonds, Lionel
Windeshausen selects them with great
care all over the world, before having them
cut by professionals. With his father, he
combines their beauty and strength to cre-
194
© 360Crossmedia/J.M
A setting…
Inaugurated on the 6th of November 2009,
the new high-end jewellery space at the
City Concorde adopted one of the common denominators of the Windeshausen
method: a splendid setting conducive to a
carefully honed hospitality. New customers immediately feel at home, while regulars recognise in the details the elegance
already ubiquitous in the Ettelbruck store
and at the headquarters in Bastogne.
Some come to acquire a prestigious brand
like Breitling, Tag Heuer or Hulchi Belluni…
Others bring along old jewellery and ask
for advice on how to transform them.
Regular visitors inquire about the latest
models of the «in-house» brand: JOZ.
195
Shopping
Génaveh
The art of
chocolate
A brutal market with a soft
centre
Génaveh is a company focused on
export, whose aim is to produce
high-quality pralines and chocolates following the traditional, “handmade” process of French chocolate making. The
competition in the handmade chocolate
sector is concerns the features of the finished product; its taste, aftertaste,
appearance and presentation. Price is
also a factor. Chocolate is a substance
that requires particular attention. It has to
be carefully handled to achieve the best
results. If you miss out a stage or do not
have the concentration to go right to the
end of the process, it will fail. Success in
this field is down to your capacity and
willingness to go the extra mile.
Compromise is not an option.
196
Artisan – the modern
approach
The genuine handmade quality so
unique to Génaveh products only reveals
its true splendour at the climax of a complex, detailed process. The shop windows may be full of delightful chocolates
in terms of taste, texture and design, but
the product’s journey from conception to
the store involves a meticulous process
of design and development. It starts with
the selection of natural ingredients of the
highest quality, and continues by subtly
blending a delicate taste sensation.
Produced in small quantities using traditional techniques, so that product quality
can be tightly controlled, a range of
unique flavours have been created from
© 360Crossmedia/J.M.
Traditional chocolatiers – a skill of the
past? The traditional handmade chocolatier
Génaveh, from Strassen in Luxembourg,
makes products for consumers who can
recognise and appreciate the difference
between mass-produced and handmade
chocolates. The quality of the product
speaks for itself and delights chocolate
lovers all over the world.
basic natural ingredients. Meticulous
experimentations and many suggestions
from customers have resulted in some
amazing taste combinations.
Universal tastes, an original idea
At a time when we are inundated with
over-processed food products – in par-
ticular in the flourishing sector of “exclusive” label products – a booming global
market has found a niche in the chocolate sector. We are now seeing a rise in
traditional methods and natural ingredients that will become one of the essential
factors in a market devoted to gastronomic food products. Although Génaveh
is positioned as a regional company, over
80% of its production is exported to
France, the UK, Spain, Germany, the
United States, Japan, China, South
Korea and Dubai. However, its largest
export market is North Africa. Génaveh
has set itself the social responsibility of
protecting traditional craftsmanship from
extinction. These crafts have survived
the industrial revolution and the 20th
century. For Génaveh, it’s not a
question of survival, but a simple
question of taste.
information:
www.myofficialstory.com/genaveh
197
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