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.

List of updates

  • Updates to the Luxembourg RAIF law relating to entities eligible as management companies and conversions between types of legal entities
  • Proposed amendments to the Luxembourg law on shareholders’ rights
  • Investments by UCIs in securitizations
  • Requirements of CSSF Circular 18/698 on authorisation and organisation of investment fund managers incorporated under Luxembourg law, and specific provisions on the fight against money laundering and terrorist financing applicable to investment fund managers and entities carrying out the activity of registrar agent
  • European Commission Sustainable Finance Action Plan
  • ESMA clarification on the calculation of leverage
  • Update of the ESMA Guidelines for stress tests for Money Market Funds, July 2019
  • CSSF FAQ on Swing Pricing , July 2019
  • Introduction of the Luxembourg Law of 13 January 2019 on the register of beneficial owners
  • Updates to the ESMA Q&A on the application of the UCITS and AIFM Directives
  • Requirements of CSSF Circular 18/697 on organisational arrangements applicable to fund depositaries which are not subject to Part I of the Law of 17 December 2010 relating to undertakings for collective investment, amendments to CSSF Circular 16/644 and IML Circular 91/75 (as amended by CSSF Circular 05/177)
  • ESMA Consultation on performance fees for UCITS, July 2019
  • Anti-Tax Avoidance Directive (ATAD) rules
  • Transfer pricing considerations
  • Mandatory Disclosure Rules (DAC6)
  • EU Directive amending the UCITS and AIFM Directives and harmonizing aspects of cross-border distribution
  • CSSF Circular 19/721 on the dematerialization of requests to the CSSF
  • CSSF Brexit notifications
  • Memorandum of Understanding between the CSSF and the Hong Kong Securities and Futures Commission relating to the Mutual Recognition of Covered Funds and Management Companies
  • Introduction of two Professional Segments at the Luxembourg Stock Exchange
  • Table of contents

    Foreword

    1. Choosing an appropriate fund vehicle and operating model

    2. UCI structures and specificities

    3. Authorization, supervision, restructuring and liquidation

    4. Investment rules

    5. Governance and liability

    6. Management of UCIs: management companies, AIFM and other Investment Fund Managers

    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

    Glossary

    Appendix IV

    EY investment fund services

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