Professionals of the Financial Sector (PSF) in Luxembourg
For the fourth year running, Deloitte will publish on 26 November the 2013 edition of their unique analysis of Financial Sector Professionals (PSF) in Luxembourg. This year’s analysis focuses on the current and upcoming challenges for PSF on the market.
PSF are defined as regulated entities offering financial services apart from the receipt of deposits from the public. This industry therefore covers a very broad range of financial services in Luxembourg.
Deloitte experts Stéphane Césari (Partner in audit and PSF industry leader), Raphaël Charlier (Partner in audit) and Frédéric Ribler (Director in audit), who were highly implicated in the process of the analysis and evaluation of the sector gave an exclusive briefing to Luxembourg for Finance and explained the different types of PSF and the new agreements (recent and foreseen), the recent evolution of the PSF, as well as challenges and opportunities for each type of PSF. They concluded that PSF in Luxembourg remain resilient and continue to grow, while increasing costs and regulation are two challenges that need attention in a context of global out-sourcing and greater transparency.
After posting steady growth close to 95% between 2004 and 2011, the number of PSF slowed in 2012. The Grand Duchy identified 316 PSF as at 31 December 2012, against 322 at the end of 2011.
At year-end 2013, the trend has again reversed: the number of PSF reached 319 in October 2013. The overall change in the number of PSF over the last nine years exceeds 92%.
PSF are Luxembourg’s second-largest employer in the financial industry, ahead of insurance and management companies. Employees number has grown almost non-stop in recent years. Between 2008 and 2012, employment in PSF rose by more than 8%, while employment in banks declined globally by almost 2.4% over the same period. The breakdown of employees by category of PSF remains stable year over year. Support PSF are represented most. Their staff increased 4% during the year (337 extra employees).
The recent changes regarding the exchange of information and the increasing regulatory environment, is a key challenge for the PSF industry. Also, specialised PSF are currently facing a new definition of their domain, with the direct impacts, for instance, of UCITS IV, the AIFMD and FATCA. The awareness of requirements implied by outsourcing is one of the main challenges for support PSF. The Luxembourg brand image will be essential in the further development of the international recognition of the support PSF label.