Investment Funds in Luxembourg

A technical guide - September 2016

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“Engaging with investors was never more important. This requires immediacy and connectivity in a simple manner, and a transparent service offering. It also requires a greater understanding of investor needs and expectations.”
Michael Ferguson

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 services providers in relation with the fund industry.

 

The 2016 version of Investment Funds in Luxembourg contains, inter alia, the following key updates:

  • Luxembourg law of 23 July 2016 on the Reserved Alternative Investment Fund (RAIF)
  • Luxembourg law of 10 May 2016 relating to the transposition of UCITS V: enhancing the rules relating to, and the responsibilities of, depositaries; introducing remuneration policy requirements for UCITS managers; and introducing new administrative sanctions
  • Implementation of the Luxembourg law and Grand-Ducal Regulation of 27 May 2016 reforming the legal publication regime
  • Luxembourg law of 23 July 2016 on the electronic filing of tax returns for taxe d’abonnement
  • Updates with respect to the Luxembourg tax reform, the EU Savings Directive, Common Reporting Standards and FATCA
  • EU Commission Delegated Act of 30 June 2016 supplementing the PRIIPS regulation
  • EU Commission proposal amending the Fourth Anti-Money Laundering Directive
  • EU Regulation 2015/2365 on securities financing transactions
  • ESMA and CSSF Questions & Answers on UCITS
  • ESMA Guidelines on remuneration

 

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

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