Deloitte Luxembourg’s latest analysis of the PSF market shows continued investment in recruitment with around 17,000 professionals employed in the sector as of June 2019. The future looks bright for the PSF industry and its talent even though the number of companies has reduced, in an environment that sees ongoing regulatory evolution.  

In recent years, PSFs have needed to adapt to a number of regulatory changes, as well as continuously develop and improve their technology in order to remain competitive. To comply with new requirements and stay ahead of the curve, many players in the industry have had to reimagine their service offerings and their business delivery model. This report presents the scope of the industry in Luxembourg and gives a clear view of the different types of PSF, how they have evolved, and their integral positioning in the Luxembourg marketplace.

“Luxembourg continues to reassert itself as a leader in the global financial sector, and its reputation for quality services among clients is built on the expertise of the PSF sector. In a constantly evolving regulatory and technological environment, it is important for PSFs to concentrate on their core business and to adapt to the needs and changes of tomorrow,” explains Raphaël Charlier, Audit Partner and PSF Leader at Deloitte Luxembourg. “In spite of these challenges, the continued investment in recruitment and retention of talent within the industry only serves to highlight the strength and growth of the market.”

The PSF: a consistent and steady employer
With around 17,000 sector employees noted as of 30 June 2019, a new record in the number of PSF jobs here in Luxembourg has been reached. They account for 35 percent of the total number of employees working within Luxembourg’s financial sector.

“The sector has employed more than 15,000 professionals over the past few years, and this number has only increased to reach over 17,000 in June 2019,” comments Adil Sebbar, Audit Director at Deloitte Luxembourg. “In light of this increase in employment, the PSF market displays definite robustness.”

These figures support the statement that PSF employment figures were relatively stable in 2018, with a slight increase compared to the previous year of 3.7 percent. However, specialized PSF particularly stands out, with the net creation of 472 jobs over 2018 (+12 percent), compared to +1 percent in 2017. While support PSF saw their employment figures increase by 3 percent during 2018 with a net creation of 275 jobs, investment firms saw a decrease (-7 percent), with a loss of 156 jobs within the year.

The sum of the balance sheets of all PSF amounted to €9 billion for 2018, compared to €8 billion as at 31 December 2017, i.e. an increase of 7 percent in one year. According to data issued by the Commission de Surveillance du Secteur Financier (CSSF), as at 31 July 2019, PSF overall have a provisional net profit of €352 million (specialized PSF accounting for €241 million), indicating a positive trend in the PSF sector.

Annual forum dedicated to PSFs
The whitepaper ‘Outlook and future of a sector in remodeling’ was presented at Deloitte’s 10th annual conference dedicated to the PSF sector, which was held at Deloitte’s premises on Tuesday 10 December 2019, bringing together more than 130 participants. Incorporating the latest PSF figures along with detailed explanations, this report analyzes recent developments in the PSF sector and provides some insight into the factors driving change within this industry. It also features interviews with key players in the marketplace and articles by industry experts.

The full version of the whitepaper is available in English at: www.deloitte.com/lu/psf