With financial institutions continuing to outsource a growing number of non-core activities to specialized external companies, the number of companies operating under the “PSF de support” status as defined by the law of 2 August 2003 has reached more than eighty entities. This cluster of competence employs today more than 8.000 highly skilled people with a total turnover of over a billion EUR in 2010 according to latest figures from the CSSF.

photo ITnation © Nicolas Buck, Chairman APSFS

Outsourcing operations not only grow in volume but also in complexity as the financial industry is moving towards outsourcing complete internal processes (Business Process Outsourcing). In parallel, new technological trends linked to virtualization tools make the service offer even more attractive and competitive. Clients from the financial industry can opt for shared technology platforms and cloud computing offers which increase their flexibility and allow for a better control of costs.

From a regulatory point of view this means that the supervisor CSSF will have to assess more complex outsourcing contracts. A close cooperation between public authorities and the industry is a must to position the country as a hub in the management of sensitive data and adapt the legislative framework and prudential rules accordingly. The current discussion between public and private stakeholders on introducing a favorable framework for electronic archiving is a good example on how such a common approach can work and create new business opportunities for Luxembourg in the digital economy.

The Support PSF association, which was founded in 2007 is the representative body of companies operating under the PSF de support status. It counts over 50 companies among its members and is actively involved in all discussions directly or indirectly linked to the “PSF de Support” status.

The current reform of prudential rules by the supervisory body CSSF is high on the agenda of the association. The APSFS supports the concept of a “risk based approach” which should increase efficiency without increasing the administrative burden on companies under supervision.

The APSFS is also member of PROFIL in order to play an active role in the promotion and development of the financial industry. Promotion and visibility of the status beyond the country’s borders is paramount for the APSFS. It made concrete proposals to the Haut Comité de la Place Financière to further develop the Support PSF cluster and make Luxembourg become a true “Information Trust Centre”. The government seems to share the view that this activity can become a solid pillar of the financial place.

The APSFS will hold its annual conference on 6 October 2011. The Minister of Finance, Luc Frieden, and the Chairman of the ABBL, Ernst Wilhelm Contzen will be speaking. The event is a networking platform for companies having the Support PSF status and customers from the financial industry. The themes will be the diversification of the outsourcing activity and the promotion companies’ expertise on the local and international levels.

More info on: www.supportpsf.lu