Swiss banks led by Credit Suisse are stepping up operations in Luxembourg, using the rival market as a gateway to clients in the 28-nation European Union.
Bloomberg News reports that roiled by the erosion of financial secrecy that helped make Switzerland the top offshore wealth centre, and an impasse in Swiss-EU political relations, the banks are seeking to build a stronghold in Luxembourg will help them comply with new EU financial rules.
Pictet and Lombard Odier, Geneva’s two largest private banks, are also expanding their base in Luxembourg. They are among at least a dozen Swiss firms in the country, of which at least seven have established or built up banks there in the past three years, according to data published by the financial regulator known as the CSSF.
Luxembourg is vying with London and Frankfurt to be the pre-eminent hub for banks and fund managers to export their services across the EU.
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