Luxembourg Greenlights 61 New Financial Entities, Industry AuM Rises – Editorial Staff – 20 March 2025
Luxembourg Greenlights 61 New Financial Entities, Industry AuM Rises
Luxembourg’s financial sector experienced significant growth in 2024, with 61 new organizations and entities receiving authorization or licensing from financial regulators. This growth was fueled by rising markets and inflows, leading to a substantial increase in assets under management (AuM), which rose by 11.5% from the previous year to over €7.3 trillion ($7.96 trillion).
According to Luxembourg for Finance, a public-private partnership promoting the country’s financial industry, more than 2,300 green, social, sustainability, and sustainability-linked bonds were listed on the Luxembourg Green Exchange by the end of 2024, representing a 23% increase totaling over €1.2 trillion.
The report also highlighted a 41% increase in premiums for Luxembourg’s life insurance sector, surpassing €26 billion. Among the newly authorized or licensed entities were two new banking institutions, two electronic money institutions, five Virtual Asset Service Providers (VASPs), seven authorized alternative investment fund managers (AIFMs), and 41 registered AIFMs. Notably, China Taiping became the first Chinese insurer to be licensed in Luxembourg.
The growth in assets under management was particularly strong in alternative funds (AIFs), which saw a 13.2% increase and now represent one-third of Luxembourg’s fund industry. This growth is illustrated in the chart provided by Luxembourg for Finance.
Overall, Luxembourg’s financial sector continues to thrive, attracting new entities and investments while solidifying its position as a leading hub for financial services in Europe.
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