UCITS in LuxembourgUpdated on Tuesday 03rd January 2017
Rate this article
based on 2 reviews
based on 2 reviews
Foreign investors interested in opening an investment fund in Luxembourg may set up a UCITS fund, which was created under the European Union’s directive 85/611/CE in 1985 enabled to establish a common framework for retail investment funds. UCITS, acronym for Undertakings for Collective Investments in Transferable Securities, offers a high level of protection for the investors which created the fund. Entrepreneurs interested in opening a UCITS fund can request information on the subject from our experts in Luxembourg.
UCITS in Luxembourg– main characteristics
Luxembourg was the first European state which implemented the EU directive into its national legislation. The UCITS funds operate under the supervision of the Commission de Surveillance du Secteur Financier (CSSF).
Investors can find out more details on the UCITS in Luxembourg below:
An UCITS fund can be organized as a collective investment funds (fonds communs de placement – FCP) or as an incorporated investment company. The FCP does not have a legal entity; in order to proceed to transactions in such a fund, a FCP needs intervention from the company’s management. Under the 2010 law, it is required that the net assets of a FCP to be minimum EUR 1,250,000.
The UCITS fund can also be incorporated as a SICAV (societe d’investissement a capital variable) that is a public limited liability company registered with the sole purpose of investing the funds in transferable securities or other financial assets; our specialists in Luxembourg can provide you with further information on the subject.
An UCITS fund can be registered as a SICAF (societe d’investissement a capital fixe) and it can be incorporated as any legal entity accepted under the legislation available in Luxembourg; the SICAF is established in order to invest its funds in transferable securities and to minimize the risks of the investors.
Information on UCITS
If an UCITS fund has been approved in the country of origin, it can be sold/ distributed on the European market without further authorization. Foreign investors interested in setting up a SICAR or SICAV fund should know that UCITS in Luxembourg are very reliable; more than three quarters of products distributed at an international level are traded through Luxembourg UCITS.
If you need further information on the UCITS in Luxembourg, please contact our financial consultants, who can offer you legal assistance.