Asset manager Northern Trust will set up a banking subsidiary in Luxembourg in order for it to have unfettered access to European Union markets following Brexit, a lobby group for the Grand Duchy confirmed on Wednesday (19 July).

Somewhat unusually, the media announcement came from LuxembourgforFinance, rather than direct from the Chicago-based asset manager which has operations in London.

Tied in to the decision is Northern Trust's acquisition of UBS' asset management fund administration services in Luxembourg and Switzerland, which is expected to close later this year.

Teresa Parker, president of Northern Trust in Europe, said: "Continental Europe is a strategic area of focus for Northern Trust and the creation of our EU banking presence in Luxembourg highlights our commitment to growing our business in the region."

Later in the trading session, Northern Trust announced that David Wicks had been appointed as head of continental Europe, subject to regulatory approval.

In the newly created role, Wicks will lead Northern Trust's business in continental Europe via the Luxembourg entity, working closely with Clive Bellows, head of Northern Trust's Global Fund Services business across Europe, Middle East and Africa (EMEA).

Wicks will be responsible for "developing strategy, regulatory oversight and governance" and will oversee client relationships in Northern Trust's Institutional Investor Group, the bank said.

Commenting on the move, Parker said: "The creation of our EU banking presence in Luxembourg, which will fall under David's leadership in his new role, highlights our commitment to growing our business in continental Europe.

"David's strong client focus, in-depth knowledge of our business operations and strategic objectives will help continue to ensure we are well placed to support our clients' requirements."

In recent months major banks such as HSBC and JPMorgan, and insurance market Lloyds of London, have said they are considering setting up EU subsidiaries and moving jobs in order to continue to have European banking passport rights, which allow an EU member nation-based bank access access to the continental market without hindrance.