The Luxembourg Private Foundation

The bill of law number 6595 submitted to the Parliament on 22 July 2013 (the "Bill") intends to introduce in Luxembourg the private foundation ("fondation patrimoniale"), which has been in development for two years.

The Luxembourg private foundation can be considered as a new wealth management vehicle created with the intention of contributing to the development of the "private banking" practice in Luxembourg. Conversely, the Bill might also be regarded as an instrument created in order to preserve the strength of the wealth management industry, following the government's decision to abolish bank secrecy by 2015 and to introduce an automatic exchange of information with third party countries.