financial crisis put a halt on projects in 2008/2009, but
with the uptick in the economy, private equity players
have once more become active and now is the right
time to enter the market.’
Baker & McKenzie opened its office in Luxembourg
specializing in corporate, M&A, banking, funds and tax
advice in October 2010 – the first office the firm has
launched in Europe since 2003. The office is lead by
Jean-Francois Findling, formerly from Luxembourg firm
Findling Collin Fessmann and André Pesch who used to
work at Ernst & Young.
From 1 January 2011 CMS DeBacker joined the new
arrivals in Luxembourg launching CMS DeBacker
Leclère Walry, again focusing on corporate law, M&A,
banking and finance and tax. The firm is developing its
new branch in partnership with Julien Leclère and Vivian
Walry, founders of the law firm Leclère & Walry.
‘Luxembourg is a key jurisdiction for tax structuring pur-
poses and has a strong banking sector,’ explains Julien
Leclère. ‘On one hand law firm networks or indeed large
international firms realize that they cannot afford not to
be here, that the volume of work they do through
Luxembourg makes economic sense to be present here
and want the added value of having their own high-
level teams instead of having to find out on a case-by-
case basis whether their local partners are conflicted
out. On the other, in their push to sustain their growth
expanding through merging with suitable and prof-
itable local practices makes sense. All these elements
play a role in firms deciding to open up shop here. I
can’t speak about other firm’s plans, but we’re definite-
ly set on expanding our teams. Since our official open-
ing the team has grown to 10 lawyers and we are keep-
ing an eye on the market for further good hires.’
‘Luxembourg has a dynamic financial services indus-
try and a leading position in the market of regulated
investment funds,’ explains Dirk Leermakers. ‘The grow-
ing reputation of Luxembourg as home base for com-
panies and investment funds turns it into a “must con-
sider” jurisdiction for many M&A and venture capital
transactions.’
BANKING SECRECY
Since the global economic downturn the issues sur-
rounding banking secrecy and the fine line between tax
evasion and tax avoidance have ruffled feathers across
Europe. Luxembourg has been no exception. ‘The out-
look of the market place has changed dramatically over
the last 5 years. Luxembourg used to be known for its
banking secrecy,’ comments Dirk Leermakers. ‘But the
Luxembourg Government has changed the position of
the country radically. For internal purposes banking
secrecy is still enforced but there is now a big exception
– any information requested in the framework of double
taxation treaties must be disclosed.’
‘Luxembourg was under pressure of the other EU
members and especially France and Belgium who were
the most active parties requesting the information
exchange and the abolition of the banking secrecy,’
explains Julien Leclère.
‘The growing reputation of
Luxembourg as home base for
companies and investment funds
turns it into a “must consider”
jurisdiction for many M&A and
venture capital transactions.’
started in 2009 when the G20 summit called for an end
to banking secrecy,’ says Dirk Leermakers. ‘The
Organisation for Economic Co-operation and
Development (OECD) provided guidelines on the
exchange of information and by the end of 2009
Luxembourg had already negotiated tax treaties to
bring it in line with those guidelines. Luxembourg
moved from the grey list to the white list as it complied
with internationally agreed tax standards.’
Remember though that banking secrecy has by no
means disappeared. ‘While we have banking secrecy
internally in our jurisdiction, the change in the rules
regarding the communication of information takes
precedent over banking secrecy,’ explains Dirk
Leermakers.
‘The authorities have opted not to automatically
exchange information with foreign tax administration
so far but to cooperate upon request and in specific
cases. This is the first step in view of a process for more
transparency,’ comments Julien Leclère.
‘There have been numerous initiatives since the last
decade to improve the exchange of information for tax
purposes in light of banking secrecy,’ adds Josée
