Luxembourg remains in talks with insurers and other financial companies that are moving business out of the UK due to Brexit, but the country has denied offering special deals to undercut European rivals.
Pierre Gramegna, Luxembourg’s finance minister, told the media on Thursday that discussions with financial firms have been in progress since the Brexit vote in June 2016.
“Luxembourg has not taken any special measures, and nor do we plan to,” Reuters quoted Gramegna as saying. “It doesn’t give the right signal. There are EU regulations that everyone must comply with.”
Insurance giant AIG announced in March that it will set up an insurance company in Luxembourg to maintain its operations across the EEA when the UK leaves the EU.
The insurer plans to have two subsidiaries Europe from 2019 – one in the UK and another in Luxembourg to write business for the EEA and Switzerland.
US commercial property insurer FM Mutual also revealed last month that it will establish its post-Brexit subsidiary in Luxembourg to issue policies in the EU and other countries.
As insurers announce their new regional homes, Ireland lodged a complaint to the European Commission that it was being undercut by other EU nations competing for companies relocating from the UK.
Without naming specific countries, Irish financial services minister Eoghan Murphy reportedly said that other EU centres are being “very aggressive” while engaging in “regulatory arbitrage.”
“We are hearing from various sources that companies are being offered certain incentives, that they are offering a back door to the single market, without the requirement to have capital to back up their entities in the European Union,” Murphy told Reuters.
Related stories:
AIG reveals European destination
FM Mutual reveals new EU home post-Brexit
More insurers ‘close’ to picking Luxembourg for post-Brexit base
Ireland complains to EU over British exit by insurers
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