Luxembourg, 10 November 2025 – While the regulatory landscape for funds is in constant flux, securitisation in Luxembourg rests on a stable, reliable foundation. “Regulation here is measured, not fashion-led”, says Stephan Blohm, Board Member at Luxembourg-based financial services provider securities.lu.
Introduced in 2004 and specifically modernised in 2022, the Luxembourg Securitisation Act prioritises substance over spectacle. “No grand gestures, no reform theatre, just solid craftsmanship”, Blohm notes. “The law works because it does not chase every industry fad. In Luxembourg, good rules are allowed to do their job instead of being repackaged year after year.” As a result, securitisation offers something increasingly rare in the funds business: calm, predictability and clear rules.
Funds face a different reality. SFDR, PRIIPs, ELTIF and AIFMD II each usher in new waves of regulation that are often poorly aligned and seldom thought through to the end. “The fund industry is getting tangled in its own bureaucracy”, says Blohm. “No sooner is one regime understood than the next arrives. This paralyses innovation and absorbs resources.”
By contrast, Luxembourg securitisation structures provide clear lines and dependable mechanics: ring-fenced compartments, well-defined responsibilities and a stable liability regime. For Blohm, the model shows how regulation can work in practice. “You can steer markets without constantly reinventing them. If the foundation is right, you do not need perpetual reform to build trust among investors and service providers.”
“This clarity is no accident”, he adds. “Luxembourg recognises that reliability is a competitive advantage. Institutional investors and service partners know exactly what they can rely on here.”
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