Governance and Oversight in Luxembourg: Turning Complexity into Confidence
Luxembourg stands as one of the most respected fund domiciles globally – also thanks to its strong regulatory environment, which fosters investor protection, market integrity, and long-term trust. But with that strength comes responsibility. As regulatory frameworks expand and oversight requirements become more demanding, the challenge is clear: how to stay compliant and responsive without compromising efficiency or client service.
At Adepa, we believe this challenge is also a unique opportunity. Governance and oversight, when handled with foresight and the right resources, can become not only a hallmark of reliability but also a competitive advantage.
To reflect on this evolving landscape, we reached out to Francisco Garcia Figueroa, Global Head of Legal and Compliance and Luxembourg Country Head at Adepa, who recently participated in a seminar organized by ALFI – Association of the Luxembourg Fund Industry – dedicated to the role of Conducting Officers in Luxembourg. The event brought together governance leaders to exchange insights on regulatory expectations and best practices in Luxembourg’s increasingly sophisticated fund industry.
Governance in a heavily regulated sector
The investment fund sector is one of the most regulated areas in financial services – and for good reason. Rules are in place to protect investors, enhance transparency, and ensure financial stability. However, as regulation intensifies, fund managers and service providers must navigate growing operational complexity.
“In any case, regulation presents a real challenge,” said Garcia Figueroa. “But it is also what distinguishes Luxembourg as a trusted and stable jurisdiction. Our responsibility is to adapt quickly and intelligently, so that compliance becomes a driver of quality and not a limitation on service.”
This approach is especially relevant as Luxembourg continues to aim for a “best in class” regulatory standard, attracting both traditional UCITS and an increasing number of alternative strategies. The result is a more dynamic yet more demanding environment, where excellence in governance is not optional – it’s expected.
The strategic role of the Conducting Officer
In this context, Conducting Officers play a central role. Beyond ensuring compliance, they are instrumental in defining and implementing governance frameworks, setting clear lines of responsibility, and promoting a strong internal control culture. They are also the main interface with the CSSF and contribute actively to the business strategy.
“Our role goes beyond operations,” Garcia Figueroa explained. “We connect the dots between regulation, strategy, and client expectations – making sure everything moves in harmony.”
In Luxembourg, where diverse operating models co-exist, this role requires both agility and deep regulatory knowledge. With UCITS products becoming more sophisticated and alternatives gaining traction, a Conducting Officer must help the organization adapt while maintaining stability and control.
Maintaining excellence without compromising efficiency
One of the key challenges of today’s regulatory landscape is maintaining efficiency while fulfilling increasingly complex obligations. At Adepa, we have built a flexible and scalable operating model that allows us to meet high regulatory expectations without passing unnecessary burdens onto our clients.
This includes making strategic investments in our people, our processes, and our technology infrastructure.
“Our governance model is designed to grow with our clients,” Garcia Figueroa said. “We want them to focus on what they do best – managing assets and raising capital – while we ensure that the structure around them remains solid and compliant.”
Digitalization and AI: enabling smarter oversight
Digital transformation is playing a critical role in our ability to deliver governance that is both robust and efficient. Over the past years, Adepa has insourced and digitalized its transfer agency (TA) function, creating a comprehensive yet agile solution that is now offered to third parties. This digital foundation enhances transparency, reduces manual work, and improves overall oversight.
We also use dedicated platforms to perform delegate due diligence and oversee activities in real time. Additionally, we have implemented an AI-based tool to assess the compliance of marketing materials with ESMA guidelines – an innovation that significantly speeds up reviews while ensuring regulatory precision.
“Our transformation department and AI strategy supports our commitment to continuously improving oversight,” said Garcia Figueroa. “Digital tools help us scale, respond faster, and provide better visibility – internally and to our clients.”
Conclusion: leading with trust and innovation
Regulatory expectations will continue to rise. The question is not how to avoid the burden, but how to transform it into a framework for doing things better. At Adepa, our response is clear: we embrace complexity, invest in capability, and innovate to ensure that our clients benefit from top-tier governance with operational clarity and speed.
In a fast-changing market, Adepa remains committed to delivering regulatory excellence without compromise – so that our clients can focus on growth, knowing their structures are secure, compliant, and managed at the highest standard.