Foreign investors setting up an undertaking for collective investments (UCI) have to obtain authorization for this type of fund, prior to starting the investment activities in Luxembourg. The fund has to be authorized by the Commission du Surveillance du Secteur Financer (CSSF), the main institution which regulates and monitors the activity of any type of vehicle registered in this country. Our team of financial agents can provide in-depth assistance on the procedure, as well as on the main documents that have to be submitted with the institution.
General requirements for the authorization of Luxembourg UCI
In order to open an investment fund in Luxembourg that operates as an UCI structure, it is necessary to follow the regulations prescribed by the Article 129 of the Law 17 December 2010. The main requirements that have to be respected in this case are the following:
• the authorization will be received if the CSSF approved the instruments of incorporation/management regulations;
• CSSF has approved the choice of depositary.
Both of the above mentioned requirements have to be satisfied in order to receive the CSSF’s approval.
Since UCIs in Luxembourg can be registered under several types of funds, additional requirement should be met, depending on the structure that was chosen for registration; our team of financial representatives can provide assistance on the main types of legal structures under which UCIs can operate here.
It is also necessary to know that the directors of the fund must prove that they have sufficient experience in the field and have a good reputation. In the situation in which the UCI is set up as a SICAV in Luxembourg, the CSSF has to grant an approval on the application of the management company that will manage the fund, which is also the case for structures set up as SICAF or as common funds.
Registration procedure in Luxembourg
Prior to starting the application for authorization, the fund’s representatives have to obtain an approval for entry in the official list of the CSSF. The application implies the payment of a fee a nd the disclosure of numerous types of data; CSSF has the right to request any additional information concerning the fund. The same requirements apply if the UCI is set up as an umbrella fund.
However, it is important to know that the authorization procedure prescribe different regulations in the case of a fund that has already been included in the CSSF’s official list.
Businessmen are invited to contact our team of financial consultants for more details related to this subject.