Today, private banking represents one of the leading activities of the financial centre.
The services available in this field extend from simple investment advice, where the client takes his own investment decisions based on the recommendations of his advisor, through to discretionary management, where the manager has discretionary power to invest the client’s assets in accordance with his risk profile and long term financial objectives.
For wealthy clients, many banks offer a global service whereby they structure and manage the client’s holdings (including financial assets, life assurance contracts, real estate, etc.), so as to optimise tax and inheritance planning. Investment and structuring advice is available not only from banks but also from independent wealth managers and internationally recognised consultancy firms based in Luxembourg.
The Luxembourg legislator has laid down very strict rules regarding the protection of client privacy. These laws are applicable to all bank employees and forbid the transmission of information relating to client accounts, except in certain cases defined by law.
The protection of private assets and inheritance planning is largely achieved by setting up specific wealth management stuctures and fiduciary operations.