​Today, the Luxembourg Parliament (Chambre des Députés) adopted bill of law no. 6845 implementing Directive 2014/91/EU of 23 July 2014 on UCITS as regards depositary functions, remuneration policies and sanctions (“UCITS V Directive”) by way of amending the Luxembourg law of 17 December 2010 on undertakings for collective investment (the “UCI Law”).

The adopted bill of law is merely a transcription of the UCITS V Directive into the UCI Law, implementing the new depositary and sanctions regime and the requirement to establish remuneration policies. In one respect the newly adopted law goes beyond the implementation of the UCITS V Directive, as it subjects a UCI established in Luxembourg and governed by Part II of the UCI Law to the new and more stringent depositary regime for UCITS (independent of its assets under management). Previously, so-called Part II funds were subject to the depositary regime of the Luxembourg law of 12 July 2013 on alternative investment fund managers (the “AIFM Law”) or of CSSF Circular 91/75, depending on whether the UCI’s assets under management fell above or below the thresholds provided by the AIFM Law. The fund industry will certainly need further guidance as to the transposition timeline as well as further clarification as to the scope of the extension of the UCITS V depositary regime to Part II funds.

The adopted bill of law also amends the AIFM Law in requiring alternative investment fund managers to have their accounting documents audited by an independent auditor and in providing some clarification on the provision of non-core services.

Today’s adoption of bill of law no. 6845 is an important step towards the implementation of the UCITS V Directive in Luxembourg. Provided that the Council of State (Conseil d’Etat) refrains from its second vote, the amended UCI Law may, after its promulgation by the Grand Duke, be published in the Mémorial, the Luxembourg official journal, and will enter into force on the first day of the month following its publication.


Isabelle Lebbe


Investment Management - OLD

Gaëlle Schneider



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