Most Luxembourg investment funds are governed by the UCITS regime, or indirectly under the Alternative Investment Fund Managers Directive.
The grand duchy is the prime location for the domiciliation and pan-European and global distribution of UCITS to both retail and institutional investors.
Depending on the nature of the assets targeted, the sophistication of the investor, the marketing channels or the geographical area in which the fund is marketed, Luxembourg-based investment funds fall into one of these three categories:
Investment funds governed by Part I of the law of December 17, 2010 on undertakings for collective investment, including funds invested in transferable securities and other instruments authorised under the UCITS Directive
Investment funds governed by Part II of the 2010 law invested in assets other than those authorised under the UCITS regime, which may be indirectly governed by Luxembourg's AIFM law, depending on whether their managers fall within the AIFMD's scope of application
Specialised investment funds governed by the Luxembourg law of February 13, 2007, which are not subject to eligibility restrictions on assets, but whose shares or units are restricted to well-informed investors. SIFs may be regulated indirectly under the AIFMD, depending on whether their managers fall within the AIFMD's scope of application.
How can we help?
Arendt can assist you in implementation and compliance with the appropriate rules, notably by:
Assessing the impact of funds legislation on your business model, and advising on the best way to implement the most recent amendments to the UCITS framework, including updating depositary and service level agreements
Reviewing remuneration policy and the remuneration rules applicable to delegated providers of outsourced services
Providing dedicated professional training to meet specific requirements, through Arendt Institute
Our regulatory consulting team can deal with all distribution notifications for UCITS funds, whether within Europe or outside Europe, as well as ongoing compliance.