In order to open an investment fund in Luxembourg that operates as a specialized investment fund (SIF), it is necessary to obtain an approval from the Commission du Surveillance du Secteur Financier (CSSF). This is prescribed under the Article 42 of the Law of 13 February 2007 on Specialized Investment Funds and our team of financial consultants can assist foreign investors on the registration procedure.
Requirements for the authorization of Luxembourg SIFs
The CSSF will provide the authorization for the operations of the fund as long as the fund’s incorporation documents were approved by the institution; at the same time, the institution will also need to approve the fund’s choice of depositary.
Depending on the type of fund that will be registered as a SIF in Luxembourg, other requirements will apply. For example, in the case of vehicles set up as common funds, the CSSF will have to approve the management company designated to manage the fund, in order for the vehicle to be authorized for investment operations in this country.
The same regulation is applicable in the situation in which the SIF will operate as a SICAV or SICAF in Luxembourg, as well as if it is registered as an investment company. Our team of financial agents can offer more details on the specific requirements applicable to these types of funds.
Requirements for the members of a SIF in Luxembourg
Furthermore, when opening an investment fund in Luxembourg under this structure, it is necessary to appoint directors who have an in-depth knowledge on the manner in which a SIF functions in this country; they also need to have a good reputation.
Any modification brought to the fund has to be announced to the CSSF’s representatives. In this sense, it is important to know that the fund’s investors have to address in writing, as soon as possible, any changes concerning matters such as:
• the replacement of the management company;
• the replacement of the managers or directors;
• any amendments brought to the fund’s incorporation documents.
Businessmen are invited to contact our team of financial specialists for more details concerning other procedures that can apply when authorizing a SIF in Luxembourg.