Create UCITS in Luxembourg
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Create UCITS in Luxembourg A presentation brought to you by Lawyers-Luxembourg.com 1
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Transcript of Create UCITS in Luxembourg
Create UCITS in Luxembourg
A presentation brought to you by Lawyers-Luxembourg.com
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Investment Fund Legislation in Luxembourg
UCITS and alternative investment funds in Luxembourg fall under the Undertakings for Collective Investment in Transferable Securities Directive.
In 2007, Luxembourg enabled the Specialized Investment Fund Law in order to facilitate the establishment of alternative investment funds.
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Undertakings for Collective Investments in Transferable Securities in Luxembourg
Undertakings for Collective Investment in Transferable Securities (UCITS) are special funds created with the role of investing the savings or transferable securities and other specific liquid financial assets in the interests of its investors.
They are different from the UCI - undertaking for collective investment.
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Features of Luxembourg UCITS
These investments schemes should be organized and managed in such a way that they function in the best interest of the investors.
The regulations for operating such funds are included in special laws and these structures are overseen by various Luxembourg authorities, one of the most important being the CSSF (Commission de Surveillance du Secteur Financier).
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Other Features of Luxembourg UCITS
Additionally, the CSSF has certain main regulations applicable to this type of funds and its management company.
These regulations concern the governance of the UCITS, including risk management, the growth of the fund and the performance of the UCITS.
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UCITS Organization Forms in Luxembourg
There are two forms that an UCITS can adopt:
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FCP: undivided collections of transferable securities and/or other liquid financial assets;
SICAF/ SICAV: an investment fund organized as an investment company with fixed or variable capital.
Authorized UCITS in Luxembourg A UCITS is authorized if the CSSF approved the instruments of incorporation or the management regulations.
Additionally, any fund managed by a company must receive an approval from the CSSF concerning the managing company.
The directors of a UCITS and/or those of the management company must prove that they have exceptional experience and reputation.
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Opening a UCITS in Luxembourg
The FCP is a form of UCITS, established with no legal personality that relies on a company that manages it.
The SICAV/SICAF investment fund is organized as a company.
The difference between the two is in the authorized share capital: the SICAF has fixed capital, while the SICAV has variable capital.
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Assistance in Creating an UCITS in Luxembourg
Our Luxembourg lawyers can help you create an UCTIS fund in the Grand Duchy.
You can also contact our law firm in Luxembourg for information about other types of business structures in Luxembourg.
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Thank you for your attention!
For more information, please contact us at:
(+44) 203-287 0408 (for international clients)
www.lawyers-luxembourg.com
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