Luxembourg has a long tradition of wealth management and is the leading wealth management centre in the Eurozone. Local private banks and family offices specialise in handling international clients who often have complex business and family profiles stretching across several countries or even continents. A number of these firms have a dedicated Islamic Finance desk that is able to offer shariah-compliant products and services.
In addition to the investment structures listed elsewhere, there are two holding structures that are tailor-made for company and wealth management. Either can be used to control a portfolio of shariah compliant investments.
The SOPARFI (Société de participations financières) is designed to optimise the management of a group of companies and can take advantage of Luxembourg’s double taxation treaties. In addition to owning and controlling shares, a SOPARFI can perform activities related to the management of its holdings and undertake any commercial activity that is directly or indirectly connected to the management of its holdings.
The second vehicle is the Family Wealth Management Company (Société de gestion de patrimoine familial, SPF). This is an investment company that facilitates the administration and management of wealth on behalf of individuals (who do not need to be related to each other). Its sole purpose is the acquisition, holding, management and disposal of financial assets, to the exclusion of any commercial activity.