On the occasion of its 6th anniversary, the Luxembourg Association for Family Office (LAFO) held a round-table debate onThursday, October 20.
Among those particpating were Pit Hentgen, Managing Director of La Lusembourgeoise, Sacha Kandiyoti of Chemitex, Matteo Novelli, Director at the Borletti Group, François Mollat du Jourdin who was a founding partner of MJ & Cie, and who is also Sevretary General of the French Association Family Office and President of the European Network of Family Offices, Serge Krancenblum, Group Chief Executive Office of SGG Group and Chairman of LAFO. The debate was chaired by Jérôme Bloch, CEO of 360Crossmedia.
Pit Hentgen began by recalling the history of Lalux, which was created in 1920 by 33 families under the name "Compagnie Financière La Luxembourgeoise". In 1989, new legislation led to the separation of banking activities through the creation of two companies - life and non-life- alongside BCEE. The historical society has been investing outside insurance - beverage, banking, industry - and especially abroad.
Sacha Kandiyoti then presented the firm founded by his uncle - Chemitex - which specialises in cotton trading. As manager of the private part of the heritage of his family, his role is to monitor the managers and assist in determining the investment strategy. The entrepreneur believes that the level of service in Luxembourg is very high and hopes the country will look after its competitiveness, particularly against very aggressive competitive destinations to attract families.
François Mollat du Jourdin, founder of MJ & Co. found that Luxembourg is a recognised pan-European platform but must still win its pedigree to be recognised as a place of Family Office in itself. No law exists in France for the Family Office. The French Association prefers a quality label rather than the creation of a law regulating their profession. "The family office business can not practice part-time," he said.
Matteo Novelli manages indirect investments of the 3rd generation of the Borletti family - including a Milanese family who created "La Rinascente" - and who retailored its strategy to actively create value for future generations. He explained why the law passed in Luxembourg in 2012 seems to suit the development of the profession in the Grand Duchy and gave some avenues to preserve Luxembourg's competitiveness in the field of Family Office.
Serge Krancenblum concluded by recalling that the law of 2012 put Luxembourg on the map of the Family Office International. This is mainly due to the many economic regulated and non-regulated vehicles offered by Luxembourg law. That said, ongoing work to improve the law and the skills of Family Officers continues.
The LAFO was created in June 2010. The association interacts with the Ministry of Finance, represents the interests of the profession and organises continuing education industry.
