Legislation Related to Investment Funds in LuxembourgUpdated on Thursday 07th July 2016
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Luxembourg provides a very well developed legislation system referring to the investment funds set up in this country, as it is the main financial centre in Europe, but also the first economy which created an investment fund. Over the years, the legislation has been changed several times and the latest modifications were adopted in 2013, to incorporate in the national legal system the provisions established under the European Union’s directives. Our team of financial experts can offer assistance on the main laws which regulate the incorporation and the activities of various types of investment funds in Luxembourg.
Laws for the alternative investment funds in Luxembourg
There are several types of investment structures available in Luxembourg, which are regulated by different legislations. One of the most recent laws adopted by the local authorities refers to the Alternative Investment Fund Manager Directive (AIFMD), which was approved in July 2013.
The AIFMD law is available for the alternative investment fund (AIF) managers, who are interested in expanding their business activities to the entire European financial market. The directive has the purpose of creating a unified investment market for the AIFs.
2007 law for special investment funds in Luxembourg
Special investment funds (SIFs) were introduced on the local market following the approval of the SIF law in 2007. The law has further been amended under the AIMF directive and, as such, the SIFs are now established under the following two structures:
• general regulations applicable to SIFs;
• specific regulations applicable to SIFs incorporated as alternative investment funds.
Our team of financial consultants can offer more details on the main differences between the two types of SIFs.
2010 law - Part I and Part II
Luxembourg introduced a new law in 2010, regulating the activity of the funds established as undertakings for collective investments (UCIs) and for undertakings for collective investments in transferable securities (UCITS).
UCIs are regulated by the Part II Law, while the UCITS fall under the provisions of the Part I Law.
Businessmen interested in receiving an extensive presentation on the stipulations of the above mentioned laws referring to the activity of the investment funds in Luxembourg can address to our team of financial representatives.