Waystone Launches First Turnkey ETF Solution on Luxembourg UCITS Platform Following CSSF Approval

Waystone has expanded its Luxembourg UCITS white-label platform to include ETF capabilities following approval from Luxembourg's financial regulator, the Commission de Surveillance du Secteur Financier (CSSF). This development makes Waystone the first firm to offer a turnkey solution for ETFs domiciled in Luxembourg, enabling asset managers to launch, list, and manage investment strategies using an ETF wrapper within Waystone’s infrastructure.

Paul Heffernan, CEO of Waystone ETFs, highlighted that the move was driven by client demand. Many international asset managers with existing Luxembourg infrastructure now prefer to domicile ETFs there instead of traditional mutual funds, offering them greater choice and flexibility.

This development comes amid broader enhancements in Luxembourg’s regulatory environment for ETFs, including new laws extending subscription tax exemptions to active ETFs and introducing transparency regimes that make Luxembourg an increasingly attractive domicile for ETF providers. Waystone’s new ETF capabilities position it well to support asset managers seeking to capitalize on Luxembourg’s growing ETF market, including innovations such as Europe's first CLO ETF, for which Waystone also serves as management company.

With over 20 years of experience in fund hosting and a strong European presence, Waystone continues to expand its comprehensive ETF platform, providing institutional investors and asset managers with robust infrastructure, regulatory compliance, and market access across key financial hubs

How will Waystone's ETF capability impact asset managers' Luxembourg strategies

Waystone's addition of ETF capabilities to its Luxembourg UCITS white-label platform is set to significantly impact asset managers' strategies by enabling them  to launch, list, and manage ETFs directly in Luxembourg using Waystone’s turnkey infrastructure. This development provides greater operational efficiency and flexibility, allowing asset managers who already have presence in Luxembourg to expand their offerings from mutual funds to ETFs without needing to set up new infrastructure elsewhere.

• Streamline ETF Market Entry: Managers can leverage Waystone’s proven infrastructure, regulatory expertise, and reporting technology to accelerate time to market and reduce operational complexity, especially important given Luxembourg’s evolving transparency and reporting requirements for ETFs.
• Access to Luxembourg’s Strategic Advantages: Luxembourg offers regulatory clarity, an efficient tax regime (including abolished subscription tax on active ETFs), and a strong ecosystem that supports active and complex ETF strategies, such as CLO ETFs. This makes domiciling ETFs there more attractive and cost-effective.
• Enhanced Cross-Border Distribution: Through Luxembourg’s UCITS framework and Waystone’s global support, asset managers can better tap into international institutional and retail investors, especially in Europe, Latin America, and Asia, enhancing distribution potential for their ETF products.
• Ability to Convert Mutual Funds to ETFs: Luxembourg’s regulatory framework facilitates converting existing mutual funds into ETFs and structures that allow ETF and non-ETF share classes within the same UCITS compartment, creating operational synergies and broadening distribution options.
• Improve transparency and Reporting: Waystone’s platform offers real-time NAV data, compliance dashboards, and secured centralized reporting adapted to Luxembourg’s regulatory demands, reducing managers’ operational burden while meeting rising investor transparency expectations.

Waystone’s ETF capability empowers asset managers to seamlessly integrate ETF strategies into their Luxembourg operations with expert infrastructural and regulatory support, enabling faster product innovation, cost efficiencies, and enhanced cross-border market access. This aligns with rising demand for active and innovative ETFs in Europe, leveraging Luxembourg’s position as a leading ETF domicile.

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