Investment Funds in Luxembourg

A technical guide - September 2017

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About this technical guide

 

The purpose of this technical guide is to provide, in a clear and concise format, an introduction to Luxembourg as a center for investment funds, the types of funds available and a summary of the regulations applicable to the formation and operation of Luxembourg investment funds. It also covers the regulations applicable to management companies and AIFM based in Luxembourg, and provisions applicable to Luxembourg service providers in relation with the fund industry.

 

The 2017 version of Investment Funds in Luxembourg – a Technical Guide, has been updated to cover, among others, the following areas:

  • EU Regulation on money market funds
  • ESMA Opinion on UCITS share classes
  • CSSF Circular 16/644 relating to depositary bank provisions
  • ESMA Opinion relating to clarifications of legislative provisions under AIFMD and UCITS regarding asset segregation and application of the depositary delegation rules to CSDs
  • Updates to ESMA’s Q&A on the application of the UCITS Directive
  • Updates to ESMA’s Q&A on the application of AIFMD including clarifications on reporting and notification
  • Updates to the CSSF Q&A on AIFM relating to the impact of the PRIIPs regulation
  • Updates to the CSSF Q&A on 2010 law funds including clarifications on independence and on UCITS share classes
  • ESMA Opinions on principles to support supervisory convergence in the context of the UK withdrawing from the EU
  • CSSF Circular 17/650 on combating money laundering and terrorist financing – details of certain provisions of the law of 12 November 2004, as amended, and of the Grand Ducal Regulation of 1 February 2010 with regard to primary tax offences
  • ESMA Q&A on MiFID II/MiFIR investor protection
  • Updates re FATCA and CRS

 

Table of contents

Foreword

1. Luxembourg investment funds

2. UCI structures and specificities

3. Authorization, supervision, restructuring and liquidation

4. Investment rules

5. Governance and liability

6. Management of UCIs: management companies and AIFM

7. Risk management and valuation

8. Administration

9. Depositary

10. Fund documentation and reporting

 

11. Expenses and taxation: structuring and reporting

12. Marketing

13. Stock exchange listing

 

Appendices:

Appendix I

Understanding UCIs

Appendix II

Key regulations and reference texts

Appendix III

Withholding tax rates applicable to Luxembourg UCIs

Appendix IV

Glossary

Appendix V

EY investment fund services