Consultancy opens Luxembourg office as fund managers lack faith in Brexit

Asset management consultancy MJ Hudson has launched a Luxembourg subsidiary as the bulk of its clients expect Brexit to knock the UK from its perch as the second-largest fund manager globally.

MJ Hudson Fund Management Solutions will provide full AIFM compliance, risk and portfolio management, operating and financial services, as well as EU Passports to its asset manager clients.

It will help spin-out and start-up managers, and non-EU managers that want to raise money throughout Europe, while larger groups can use it to outsource certain procedural, personnel and regulatory aspects of fund management.

Chief executive Matthew Hudson says: “A launch in Luxembourg was already on our radar before the Brexit events of 2016. It is a significant funds market in its own right with extremely strong and stable laws, structures, regulations and complementary service providers. However, our plans were accelerated by the UK’s vote to leave the EU last year.”

The expansion comes as research by MJ Hudson shows two-thirds of UK-based fund managers expect Theresa May’s Brexit negotiations will knock the UK from its position as second-largest global centre for the industry. In the continent this is three quarters of respondents.