UCITS in luxembourg
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A presentation brought to you by StartLuxembourgFund.com UCITS in Luxembourg 1
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A presentation brought to you by StartLuxembourgFund.com
UCITS in Luxembourg
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UCITS funds
The UCITS fund was created under the European Union’s directive 85/611/CE in 1985.
It provides a comprehensive framework for retail investment funds.
UCITS, acronym for Undertakings for Collective Investments in Transferable Securities, offers a high level of protection for the investors which created the fund.
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UCITS – main characteristics >> Luxembourg was the first European state which implemented the EU directive into its national legislation.
The UCITS funds operate under the supervision of the Commission de Surveillance du Secteur Financier (CSSF).
An UCITS fund can be organized as collective investment funds (fonds communs de placement – FCP). It can also be set up as an investment company.
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>> UCITS – main characteristicsThe FCP in Luxembourg does not have a legal entity.
A FCP needs intervention from the company’s management for transaction related activities.
Under the 2010 law, it is required that the net assets of a FCP to be minimum EUR 1,250,000.
Our team of financial representatives can offer more details on the regulations related to the FCP.
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UCITS – incorporation
The UCITS fund can also be incorporated as a SICAV (societe d’investissement a capital variable).
The SICAV represents a public limited liability company which invests in transferable securities or other financial assets;
The UCITS fund can also be registered as a SICAF (societe d’investissement a capital fixe). The SICAF invests in transferable securities as well, but also minimizes the risks of the investors.
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UCITS – distribution in Luxembourg If an UCITS fund has been approved in the country of origin, it can be sold/ distributed on the European market without further authorization.
This is applicable only for the European UCITS. It is a very common type of investment fund available in Luxembourg.
More than three quarters of products distributed at an international level are traded through Luxembourg UCITS.
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UCITS as SICAVs in Luxembourg The SICAV is subject to the Fund Law in Luxembourg. It must also comply with the Luxembourg Commercial Company Law.
The investment fund can be managed by a designated fund management company, but also be a self-managed investment company.
Our team of financial experts can offer more details on the SICAVs in Luxembourg.
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UCITS as SICAFs in Luxembourg
The SICAF – the investment company with fixed capital can be registered under several legal entities, presented below:
• public limited company;
• limited liability company;
• partnership limited by shares;
• co-operative.
• single fund or an umbrella fund.
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Authorize UCITS at CSSF
The authorization of an UCITS must be performed following the Article 129 of the law that came into force in 2010.
In order to authorize the UCITS structure, the CSSF will have to approve the incorporation of the fund.
The legislation requires that the investors and fund’s directors have a good reputation and sufficient experience.
Any modifications related to the fund will be submitted at CSSF.
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Consultancy services in Luxembourg Our team of financial consultants can offer assistance on numerous aspects related to the domiciliation of an investment fund in Luxembourg.
Investors can find out more details on how to use a life insurance contract as an investment tool.
At the same time, our experts can provide more details on other types of investment funds, such as the securitization vehicles.
Thank you for your attention!
For more information please contact us at:
(+44)203-287 0408 (for international clients)
www.startluxembourgfund.com
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