News - 20.02.2018

T Rowe Price to set up EU hub in Luxembourg

  • Asset Management

T Rowe Price, the $1tn US asset manager, is seeking the approval of Luxembourg’s financial regulator (CSSF) to strengthen its presence in Luxembourg. The Luxembourg company will become the new head office for its EU business, while the UK entity will continue to serve the domestic market.

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Robert Higginbotham, head of global investment services at T Rowe Price, told the Financial Times that all EU offices would be reporting to the Luxembourg company by the end of the year. Mr. Higginbotham expects the entity to be set up by the summer. “We have been working on this for a year and will have to get it complete by the end of the year,” he said.

With 16 international offices serving clients in 47 countries around the world, T Rowe Price has European operations in Madrid, Milan, Zurich, Frankfurt, Amsterdam, Copenhagen, London and Stockholm. It offers funds, advisory services, account management, and retirement plans and services for individuals, institutions, and financial intermediaries.

Besides T Rowe Price, MJ Hudson and M&G, many other asset managers are in the process of consolidating their presence in Luxembourg, which is the largest investment fund centre in Europe and the second largest in the world after the US. In addition, more than 18 financial institutions (banks, insurers, asset managers, private equity) have been reported to relocate or expand parts of their business activities in Luxembourg following the UK’s decision to leave the European Union.