Investment Funds in Luxembourg - 2022 edition

Investment Funds in Luxembourg - 2022 edition

About this technical guide

Investment Funds in Luxembourg is the definitive technical guide providing an introduction to Luxembourg as a center for investment funds, the types of fund vehicles available and a summary of the regulations applicable to the setting-up and operation of Luxembourg investment funds.

It also covers the regulations applicable to both traditional and alternative management companies, and the provisions applicable to other Luxembourg service providers. 

Choose the chapter you wish to download from the list below, or download the complete edition of Investment Funds in Luxembourg 2022.

  • Investment Funds in Luxembourg 2022 - Complete download

    Get your digital copy of the complete 2022 edition of Investment Funds in Luxembourg.

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  • Choosing an appropriate fund vehicle and operating model

    Introduction to Luxembourg’s investment fund industry and a detailed overview of Luxembourg’s solutions for investment funds. 

    Download Chapter 1

  • UCI structures and specificities

    Overview of the principal regulations applicable to Luxembourg investment funds (undertakings for collective investment — UCIs), details relating to structures of UCIs, minimum capital requirements, specific requirements and vehicles used in conjunction with Alternative Investment Funds (AIFs).

    Download Chapter 2

  • Authorization, supervision, restructuring and liquidation

    Procedures to be followed when setting up or amending an undertaking for collective investment (UCI) in Luxembourg, ongoing supervisory requirements, including the requirements and considerations for conversions and mergers of UCIs, the fast track authorization procedure for the creation of a side pocket, transfer of foreign UCIs to Luxembourg and liquidation of UCIs and compartments, as well as dormant compartments.

    Download Chapter 3

  • Investment rules

    Summary of investment and borrowing rules applicable to Luxembourg investment funds, including fund investment objectives and policies, asset eligibility, and compliance with investment restrictions.

    Download Chapter 4

  • Governance and liability

    Overview of governance models, roles and responsibilities for Luxembourg investment funds and managers, as well as requirements for delegate and service provider due diligence.

    Download Chapter 5

  • Management of UCIs: Management companies, AIFMs and other IFMs

    Outline of the scope of activities and functions of management entities, as well as the applicable regulations and legal, operational, financial and tax requirements for setting up and operating management entities in Luxembourg.

    Download Chapter 6

  • Risk management and valuation

    Details on the risk management and valuation requirements applicable to Luxembourg investment funds, management companies and AIFMs.

    Download Chapter 7

  • Administration

    Summary of the requirements applicable to the administration function in Luxembourg, including but not limited to: roles and responsibilities, authorization, regulatory and organizational requirements, net asset value treatment, compliance monitoring, subscriptions and redemptions, as well as anti-money laundering and counter terrorist financing procedures. 

    Download Chapter 8

  • Depositary

    Key points related to the depositary function of Luxembourg investment funds, covering qualifications and duties of the depositary, conduct of business rules, liability and delegation by the depositaries to third parties.

    Download Chapter 9

  • Fund documentation and reporting

    Requirements related to fund documentation and reporting, including prospectuses, KID and other investor information, financial reports and other periodic regulatory reporting to the CSSF and foreign supervisory authorities. Disclosures regarding sustainability are covered in Chapter 14.

    Download Chapter 10

  • Expenses and taxation: Structuring and reporting

    Overview of the formation and expenses incurred by and taxation of Luxembourg undertakings for collective investments (UCIs), including the VAT regime applicable to services provided to Luxembourg UCIs and their service providers. 

    Download Chapter 11

  • Marketing

    Requirements applicable to the marketing of Luxembourg investment funds, encompassing distribution regulation (including pre-marketing), fund registration, distribution strategy, as well as distributor due diligence and compliance. 

    Download Chapter 12

  • Stock exchange listing

    Summary of the key conditions for listing securities on the regulated market in Luxembourg – the Luxembourg Stock Exchange (LuxSE) – as well as the multilateral trading facility operated by the LuxSE, and the Luxembourg Stock Exchange Official List (LuxSE SOL). 

    Download Chapter 13

  • Sustainable finance

    Breakdown of the minimum requirements applicable to investment fund managers and undertakings for collective investments (UCIs) as regards environment, social and governance (ESG) factors and risks.

    Download Chapter 14

  • EY Investment Fund Services

    Overview of the EY Luxembourg asset management practice and list of investment fund services, including audit, financial accounting, tax, transactions and advisory services, covering the complete lifecycle of an investment fund from concept, through launch, to business as usual, and beyond.

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List of Updates

  • CSSF Circular 21/788 on the AML/CFT external report
  • CSSF Circular 21/789 on the self-assessment questionnaire to be submitted annually by investment fund managers , the engagement of the réviseur d’entreprises, the management letter and the separate report
  • CSSF Circular 21/790 on the self-assessment questionnaire to be submitted annually by Luxembourg undertakings for collective investment, the engagement of the réviseur d’entreprises, the management letter and the separate report
  • Commission Delegated Regulation (EU) 2022/1288 (Sustainable finance disclosure regulation regulatory technical standards)
  • Commission Q&A on sustainability related disclosures
  • Clarifications on the ESAs’ draft regulatory technical standards under the sustainable finance disclosure regulation
  • Commission Delegated Regulation (EU) 2021/2139 (Taxonomy regulation technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation) 
  • Commission Delegated Regulation (EU) 2021/2178 (Taxonomy regulation regulatory technical standards on Article 8)
  • Law of 25 February 2022 on, inter alia, CSSF supervisory powers and sanctions in application of SFDR and the Taxonomy regulation
  • CSSF FAQs on ancillary assets (for UCITS and MMFs)
  • CSSF Circular 22/806 and FAQ on outsourcing arrangements
  • Proposal for a Directive amending UCITS and AIFM directives
  • Proposal for a Regulation amending ELTIF Regulation
  • Update of ESMA’s Q&A on the application of the UCITS Directive concerning fee rebate arrangements and the eligibility of special purpose acquisition companies
  • CSSF FAQ on virtual assets
  • Update of ESMA Q&A on the application of the AIFMD concerning investment in crypto-assets
  • Update of ESMA Q&A on the application of the UCITS Directive (diversification rules, counterparty risk limits, marketing of a new share class)
  • CSSF Circular 22/811 and CSSF FAQ on the authorization and organization of entities acting as UCI administrator
  • Commission Delegated Regulation (EU) 2021/2268 amending PRIIPs regulatory technical standards (performance scenario, costs, past performance)
  • Update of ESMA Q&A on the PRIIPs KID
  • CSSF FAQ regarding international financial sanctions 
  • CSSF Circular 21/782 - Adoption of the revised EBA guidelines on money laundering and terrorist financing risk factors
  • CSSF FAQ on the market entry form
  • Law of 17 December 2021 partially implementing EU Directive 2018/1673 on combating money laundering by criminal law
  • EBA’s Guidelines on roles and responsibilities of the AML/CFT compliance officer
  • CSSF Guidelines on the UCITS risk reporting
  • CSSF Circular 22/795 on the application of requirements for marketing communications
  • CSSF FAQ on the application of LMTs by investment funds (Ukraine crisis)
  • CSSF Circular 22/818 implementing updated ESMA Guidelines on stress test scenarios under the Money Market Funds Regulation