Part II funds may either appoint an external AIFM (the management company of the fund or a different entity is appointed as AIFM) or choose to be internally managed. The AIFM can be established in Luxembourg, in another EU Member State or in a third country. Part II funds are required to appoint an Alternative Investment Fund Manager (AIFM), unless they benefit from the limited exemptions provided by the AIFM law. The contents of the prospectus are set out in Schedule A of Annex I to the 2010 law and in Chapter L of IML Circular 91/75 (as modified). Disclosure requirements and financial reportsĪ Part II fund must prepare a fund prospectus, a PRIIP Key Information Document (KID) if retail investors can make investments, an annual report and a semi-annual report. The capital of any SICAV/SICAF must reach EUR 1,250,000 within six months from its authorisation. The minimum capital of a self-managed SICAV/SICAF may not be less than EUR 300,000 at the time of authorisation. This minimum must be reached within a period of six months following its authorisation. The net assets of an FCP may not be less than EUR 1,250,000. A Part II fund may start business as soon as authorisation has been granted. The CSSF keeps an official list of the authorised Part II funds that are subject to its supervision. The approval process of a new UCI Part II fund or additional sub-funds is subject to the payment of a one-off fee. The documents and information are generally compiled and submitted to the CSSF with the assistance of lawyers/auditors and/or a bank in Luxembourg. The draft documents and information to be submitted to the CSSF – via e-file (see or email ( – for approval are set out in Articles 129-132 and 150-158 of the 2010 Law and Chapter K of IML Circular 91/75 (as modified). The CSSF charges an annual fee for its supervisory activity. by means of regular reporting requirements. Afterwards, it is supervised by the CSSF on an ongoing basis e.g. Authorisation and supervisionĪ Part II fund must be authorised by the Commission de Surveillance du Secteur Financier (CSSF) before commencing its activity. The fund and compartments respectively may have an unlimited number of share/unit classes, depending on the needs of the investors to whom the fund is distributed. The creation of such a corporate entity requires the drafting of instruments of incorporation.Īn FCP or SICAV/SICAF may be set up as a single fund or as an umbrella fund with multiple compartments. open- or closed-ended investment companies with variable capital and fixed capital respectively. A société d’investissement à capital variable (SICAV) or société d’investissement à capital fixe (SICAF), i.e.
The FCP has no legal personality and must be managed by a Luxembourg management company
concerning AML, MiFID, market abuse, derivatives, securities financing transactions, shareholder rights). There are a number of additional rules that have to be observed at national and/or EU level (e.g. Part II funds investing in short-term assets and having distinct or cumulative objectives offering returns in line with money market rates or preserving the value of the investment must further comply with the requirements of Regulation (EU) 2017/1131 on money market funds. Moreover, the Luxembourg law of 12 July 2013 on Alternative Investment Fund Managers (AIFM Law) applies. Legal frameworkĪIFs which are not governed by a specific product law (on SIF, SICAR or RAIF) and not set up in pure company form are governed by Part II of the Law of 17 December 2010 (2010 Law) as modified by the Law of implementing EU Directive 2014/91/EU (“UCITS V”).
#UC ISCHEDULE OF CLASSSES PROFESSIONAL#
Part II funds that have appointed an EU AIFM can market their shares, units or partnership interests via a specific passport to professional investors across the EU. It qualifies as alternative investment fund (AIF) and can be sold to all types of investors.
Responsible investing and sustainable finance.Alternative investment funds asset classes.SLP (Luxembourg special limited partnership).RAIF (Luxembourg Reserved Alternative Investment Fund).SICAR (Investment Company in Risk Capital).Alternative investment funds legal vehicles.
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