The unprecedented events of the past two years have clearly put operating models and governance & oversight arrangements to the test.

Additionally, structural challenges relating to new ways of interacting with staff, business partners & service providers, resourcing constraints and the critical need to accommodate business growth are commonly felt throughout the Luxembourg market by virtually all players.

Boardroom discussions are continuously focused on a constant search for scalability and streamlining, having to deal with increasing operational costs and a heightened degree of regulatory scrutiny. Interestingly, development axes mentioned by AIFMs relate to ESG expansions, streamlining of operations by way of digitalization or rationalization and for some, a willingness to position the entity as a commercial or strategic enterprise in addition to a governance hub.

Drawing on our research, insights, and interactions with managers and business leaders, we highlight the following priorities in AIFM 2022 agendas:

  • Reassess the Business value chain with a view to benefit from synergies intra or extra group and achieve scalability.
  • Keep up with the pace of regulatory change (e.g. LFR, CSSF 20/744 etc.).
  • Embed ESG into control frameworks.
  • Make talent, human capital management a priority.
  • Manage the overall regulatory risk exposure and scrutiny.  
  • Review distribution/marketing arrangements

This article topic was originally published on kpmg.com.

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