Securitisation Funds in Luxembourg

Securitisation Funds in Luxembourg

Updated on Monday 25th March 2019

Rate this article

based on 3 reviews

Securitisation-funds-in-Luxembourg.jpgForeign investors who are interested in asset management in Luxembourg can establish a securitisation fund, which is a vehicle set up as a financial structure used for the conversion of assets. Luxembourg represents the best financial market in the European Union for fund domiciliation and our team of experts can provide an in-depth presentation on the main advantages of this type of securitisation vehicle

Securitisation vehicles in Luxembourg 

Securitisation refers to the action taken by a securitisation vehicle, which can issue transferable securities for the conversion of assets. The action consists of comprising a number of assets which are estimated to produce a certain value of cash flow; the assets are turned into securities, which can be bonds or shares. 
According to the law applicable in Luxembourg, the following types of assets can become securities:
securities in the form of shares, loans or bonds;
debt risks; 
movable and immovable property;
any valuable activity which can lead to a certain level of income. 
Investors are invited to watch the video below, which offers more details on the securitisation funds in Luxembourg:

Foreign investors who want to open a securitisation vehicle can incorporate the entity either as a company, either as fund; our financial consultants can provide you with more information on this matter. 

 Securitisation vehicles established as funds in Luxembourg 

A securitisation vehicle is not a legal entity; in order to be allowed to carry out activities in Luxembourg, the fund is required to be managed by a management company incorporated as commercial entity. 
According to the Securitisation Law, a securitisation fund has to specify in its management regulations that it complies with the provisions of the above mentioned legislation in order to qualify as a securitisation fund
The fund can be established as a co-ownership or a trust, which can be further categorized in sub-funds. 
A securitisation fund does not have to submit a minimum capital; the directors of the management company managing the fund are required to have a business experience relevant for the function. 
An important aspect is the accounting procedures for a securitisation fund are done under the Investment Law 2010; the fund is not liable to paying the corporate income tax or municipal business tax; another relevant aspect is that a securitisation fund is not required to pay a subscription tax, as it is exempted from this tax, although it is applicable to other types of investment funds
If you need further information on the securitisation funds in Luxembourg, please contact our financial agents for assistance on this matter.