History of Investment Funds in LuxembourgUpdated on Friday 10th June 2016
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Foreign investors who are seeking for a financial market where they can set up their investments are advised to choose Luxembourg, as it provides a stable and an advantageous environment for fund domiciliation. Luxembourg has a long history related to the establishment of investment funds, as it was one of the first economies which have implemented an attractive legislation in this sense. Our team of financial representatives can provide an in-depth presentation on the evolution of the investment funds in Luxembourg.
Luxembourg, the main market for UCITS
Those who want to invest in Luxembourg should know that the country represents the first destination chosen by foreign investors in terms of funds established as UCITS (Undertaking for Collective Investment in Transferable Securities), a type of investment model first introduced in 1985.
UCITS were introduced under a measure of the European Union and they were firstly addressed to the European member-states, which, at that moment, were seeking to establish a single market, under a single regulatory framework. However, since then, UCITS have evolved and are now used as an international product; our team of financial agents can offer more details on this matter.
During time, the way in which UCITS could be managed has also evolved and, since 2009, the UCITS IV regulation states that UCITS can be managed by a management company established and authorized in another EU member state, not only in the home country.
Historic aspects of the investment funds in Luxembourg
It is important to know that the first investment fund in Luxembourg was established in 1959 and that the industry is regulated by several bodies. The main institution in this sense is the Commission for the Supervision of the Financial Sector (CSSF), which authorizes the activity of funds established here. Starting with 2008, the industry is also represented by the Luxembourg for Finance agency, established to promote the development of the field.
Entrepreneurs who need more details on the history of the investment funds in Luxembourg can address to our financial consultants, who can provide an in-depth presentation on the subject.