Northern Trust has established its EU bank in Luxembourg in preparation for the UK leaving the European Union.
The custodian selected Luxembourg as its post-Brexit destination in 2017, creating an EU-banking license as it looked to continue serving continental European funds.
Northern Trust Global Services Societas Europaea (NTGS SE) will be led by David Wicks, chief executive officer, who in 2017 was named to lead continental Europe.
The custodian will maintain branches in the UK, Netherlands, Sweden and Abu Dhabi, and its EMEA headquarters will remain in London, where it has been present for 50 years.
“As an industry, we have seen tremendous change over the last 50 years,” said Teresa Parker. “Our clients face increased pressure to generate returns and enhance efficiencies against the backdrop of challenging markets, cost and regulatory change. With the establishment of our Luxembourg-based bank, which is backed by the strength, scale and 130-year heritage of a global organization and underpinned by continuous technological innovation, we are exceptionally well placed to support our clients’ future goals and objectives.”
Northern Trust’s presence in Luxembourg has grown steadily since it was first established in 2004. Following the company’s 2017 acquisition of the fund administration servicing units of UBS Asset Management in Switzerland and Luxembourg, Northern Trust laid a foundation for growth in Luxembourg, the largest funds distribution centre outside of the US.
As the new EU bank headquarters, Steve David has been named chief operating officer; and Thierry Lopez, chief risk officer.