The fund industry is permanently evolving, but incremental changes are hardly noticed. Sometimes however, industries undergo radical changes, where the process of evolution is significantly disrupted by outside technological, demographic, regulatory, and economic forces.
This article discusses two important potential/probable developments of the Luxembourg investment funds industry in the coming decade. First, it explains why it is expected that Luxembourg investment funds will continue to rise in importance comparatively to many other jurisdictions. Second, it sheds some light on how blockchain and decentralized autonomous organizations (‘DAOs’) are due to reshape the investment funds industry with a flourish of new actors attracting significant attention from markets, customers, and investors alike.
The views expressed in this article reflect some of the author’s experience to date on the subject matter. As the Luxembourg fund market continues to develop – namely in relation to blockchain and DAOs – these views may and will most likely continue to evolve in one way or another. This article should in no wise be construed as legal advice rendered by the author or by NautaDutilh Avocat Luxembourg S.à r.l., nor should it be interpreted as reflecting the views of NautaDutilh Avocats Luxembourg S.à r.l.