In our matrix organisation, from a delivery perspective, our professional services are grouped in 3 Lines of Services: Assurance, Tax and Advisory.
They are supported by our specialised central teams in certain critical support areas, like Infrastructure, IT, Compliance, Marketing & Communications, Client Relationships & Sales, Market Research and Knowledge Management, to name a few.
Advisory
Our Advisory practice had a very successful year, reporting a 13.9% growth to EUR 116.5M, and was an important contributor to the overall growth of PwC Luxembourg. This performance reflects the attractiveness of our services and their relevance to clients' needs in uncertain times as well as a constantly evolving and attracting talent strategy.
The regulatory agenda, the important market growth in Alternatives, as well as the level of activities in deals on the market, have been key drivers of growth this year in addition to the heavy transformation, people and the modernisation agenda.
Our services offering has regrouped around our client's current key challenges, and focus mainly on Operational Excellence, Risk and Regulation, Sustainability, Alternatives, Workforce of the Future, Digital Transformation and Business Strategy.
In the coming year, we plan to continue broadening our Advisory business, recruiting further new competencies, proposing innovative services and reinforcing our Managed Services offering in Luxembourg and abroad, with the continuous purpose to build trust in society and solve important problems.
Assurance
FY22 has been another very strong year for our Assurance practice with a growth of 10.6% to EUR 272.4M. As with the rest of the firm, the lion’s share of this growth is attributable to the Alternatives industry. It should, however, be noted that all other industries, except for Insurance (as expected due to mandatory audit firms rotation in both 2021 and 2022), have also experienced a robust level of growth.
This long-term growth is first due to our relentless and key focus on quality, which ensures the trust of our clients and stakeholders and the value of the assurance reports that we provide. Our clients also appreciate that our teams continuously listen to them and help them navigate through ever more complex audits in very volatile and uncertain environments.
We also see a real increase in impact on our clients from our commitment to innovation, especially incorporating digital solutions into our Assurance work.
In that context, we have continued to focus on our transformation journey by further enhancing our current digital solutions and building new ones. A specific significant investment was made in the current year to develop our SFDR Assurance Digital Solution that will underpin our ESG assurance engagements for SFDR Level 2 Disclosures. Our client-focused ESG assurance service relies on the latest technology and a robust methodology implemented by professionals with deep expertise in ESG and sustainable finance.
Building on the same innovative approach, our Assurance practice aims to further develop other assurance services, such as non-financial reporting, internal audit, processes and controls, and data & data analytics.
Tax
In FY22, Turnover from our Tax Services grew by more than 9% to EUR 154.4M. The solid growth is equally spread over all of our Tax Services. The Tax Services practice continues to be recognised as the leading provider of consulting, compliance and managed services in Luxembourg, in terms of size, Turnover and services scope.
The Luxembourg market is resilient despite the adverse effects of the pandemic and the geopolitical situation. The steady growth of the Luxembourg financial services industry led us to expand and diversify our Tax Services offering in order to best serve our clients in support of their businesses.
The demand for our Managed Services is growing rapidly due to the ever-more complex tax rules and reporting landscape. We help our local and international clients successfully navigate and comply with the complexity of rules across disciplines. Our clients are confronted with significant resource constraints, continuing the accelerating outsourcing trend, notably in the field of accounting, tax compliance and other reporting.
We continue to actively recruit talents to reinforce our teams, and we are enhancing our service delivery models. Our goal is to ensure the best service experience for our clients, to keep up with the increasing demand for our services, and to meet our client's highest service quality expectations. We pursue our services scope innovation, our technological transformation and the launch of digital platforms.
