The Association of the Luxembourg Fund Industry (ALFI) said it wants to develop pan-European personal pension products (PEPP) that take environmental, social and governance (ESG) aspects into account.
As part of its key objectives for the next five years – announced this week – ALFI said it will support the development of digital solutions for cross-border pensions, and help forge the infrastructure for international pensions service providers.
PEPP is a voluntary personal pension scheme that will offer consumers a new pan-European option to save for retirement.
The product is designed to offer savers more choice and provide them with more competitive products with strong consumer protection.
It can be offered by a broad range of financial providers such as insurance companies, asset managers, banks and occupational pension funds.
ALFI added that it wants to take the lead in defining best practice guidelines for sustainable finance solutions.
Furthermore, the Luxembourg industry will take initiatives to extend the global reach of Undertaking for Collective Investment in Transferable Securities (UCITS) to investors worldwide, it said.
As a core building block for both pensions and sustainable finance, it will seek to further refine and improve the Luxembourg legal and tax framework for UCITS, it indicated.
The industry organisation said it also wants to develop the Real Estate Investment Trust (REIT) regime as one of the key elements of the Luxembourg toolbox, alongside improving existing structures.
ALFI’s key objectives also include its aim to broaden Luxembourg’s position in alternatives in terms of access to investors and fundraising.
It also said it wants to facilitate the country’s technology ecosystem by bringing together experts as well as “disruptive” technology innovators.
In a comment on its targets, Corinne Lamesch, ALFI’s chair, highlighted that breakthroughs in technology and innovation often occur during times of disruption, and that her organisation expected digital transformation to accelerate.