Deloitte Report: Luxembourg Counts 17.5k Financial Sector Professionals in 2022

Deloitte Luxembourg has published a report on Professionals of the Financial Sector (PSF) which shows continuous maturation in Grand Duchy’s regulatory and tax landscape while providing an analysis for decision-makers.

Deloitte Luxembourg recently presented its fourteenth study of the PSF market at its premises in Luxembourg-Gasperich. The report discloses a detailed view of the PSF ecosystem, covering essential aspects of the legal and regulatory framework and relevant tax matters, while exploring key trends and the sector’s evolution.

“Deloitte has diligently tracked the sector’s evolution from the first registration of a PSF in Luxembourg. Now, for the third consecutive year, the PSF market shows signs of evident maturation and ongoing resilience,” said Raphaël Charlier, Partner and PSF Leader at Deloitte Luxembourg. “For that reason, we thought it was appropriate to share with decision-makers a comprehensive view of the implications associated with the PSF designation and summarise all the essential requirements for acquiring such status in the Grand Duchy.”

In the 2023 market study, several key findings emerged:

• The number of PSF entities under CSSF supervision experienced a slight decrease, totalling 260 entities by the end of 2022, compared to the year-end 2021. As of 30 September 2023, the consolidation trend persisted, with 255 PSF subject to the prudential supervision of the CSSF.

• The workforce of PSF exhibited a notable 4.6% growth, employing 17,514 professionals throughout 2022, compared to the 16,744 recorded as of December 2021.

• According to CSSF statistics, the net profit of PSF entities displayed significant growth, from €277 million in 2021 to €422 million in 2022. However, excluding an outlier segment of the Specialised PSF category, the net profit for 2022 would have been €252 million, indicating a 9% decrease compared to 2021.

• The net result of investment firm PSF witnessed a decline of 33%, while support PSF experienced a noteworthy rise of 28%, and specialised PSF recorded a 180% increase between 2021 and 2022. Despite these fluctuations, the total balance sheet of PSF remained relatively stable at €8,892 million as of 31 December 2022, compared to €8,864 million as of 31 December 2021.

“Luxembourg’s reputation among clients for its quality services is built on the expertise, innovation and know-how of its professionals of the financial sector,” said Adil Sebbar, Audit Managing Director at Deloitte Luxembourg. “PSF are seizing the many market opportunities served by new trends and regulations, while reinforcing efficiency and synergies. Deloitte has the right competencies and services to support and advise all types of PSF throughout every stage of their development.”

The 2023 report confirmed a positive outlook for the sector, with a variety of opportunities to explore but also challenges to overcome. The full report can be accessed via the following link: https://www2.deloitte.com/lu/en/pages/psf/articles/psf-outlook.html.