LUXEMBOURG - Luxembourg has abolished its 0.01% subscription tax on multinational companies establishing investment vehicles to pool their cross-border pension assets.
“We are trying to permanently improve the legal and fiscal environment for all types of funds,” said Jean-Jacques Picard, director of public relations for the Luxembourg Investment Funds Association.
“We’ve created a new type of venture capital fund, we abolished at the beginning of the year the subscription tax for institutional triple A rated money market funds and we hope that we will benefit from the general trend to concentrate fund offerings in one single domicile, rather than having, for example, retail funds in Luxembourg, money market funds in Dublin and other funds somewhere else. Promoters tend to concentrate all their fund offerings in one place.”
The abolition of the tax was welcomed by service providers. Ian Baillie, senior vice president, managing director for the Luxembourg office of Northern Trust said: “This illustrates the decisive way in which the Luxembourg government is facilitating the creation of innovative products in order to attract new assets.”
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.