WATCH ON SKY NEWS: WHY LUXEMBOURG IS WINNING BREXIT BUSINESS
Nicolas Mackel, CEO of Luxembourg for Finance, spoke with Sky News “Ian King Live” in London about the UK Brexit strategy and why Luxembourg is winning Brexit business.
Luxembourg is emerging as an important destination for financial institutions post-Brexit. Companies including M&G, AIG, Hiscox, Northern Trust, Liberty Mutual, FM Global, CAN Hardy and RAS have made Luxembourg their new EU-hub.
Speaking to "Ian King Live" on the Luxembourg sales pitch, Mackel points out that “most of the financial firms who are moving their EU base to Luxembourg already have operations in Luxembourg and are looking at how they can use that activity for certain activities to help them in this situation.”
Mackel was asked why the leading global insurers, have decided to headquarter EU operations in Luxembourg.
“First of all insurers tell us we are in the business of the long term, and we look at what country offers us the best stability, the best predictability and Luxembourg apparently comes out first in class on this criteria. Second Luxembourg has the distinctive feature that it has a separate insurance regulator that is specialized in insurance with very highly qualified staff, which has expertise in cross-border insurance. Most other insurance regulators have focused on the domestic market rather than the cross-border market. “
When questioned about the number of jobs that could be lost in London and created in Luxembourg, Mackel stressed that the number would depend on the result of the Brexit negotiations.
“Nobody at this stage knows, has any inkling of what exactly the future relationship between the EU and UK will be, what degree of access the UK will have to the single market and the figure that you are asking me depends on that. Some of the financial institutions that have decided already to relocate to Luxembourg for their post-Brexit EU operations have in fact decided to create additional jobs, not to lose employment in the UK. When I have to put a number to it in short to medium term, which I put at two to three years, then I would estimate that Luxembourg would gain about 3,000 jobs.”