Luxembourg

major Fund Legislation and circulars

• Law dated 20 December 2002 (2002 Law) relating to undertakings for collective investment and amending the law of 12 February 1979 concerning the value added tax as amended;
• Law dated 13 February 2007 (SIF Law) relating to Specialised Investment Funds;
• CSSF Circular 02/80 relating to funds pursuing alternative investment strategies;
• CSSF Circular 91/75 relating to undertakings for collective investment;
• Grand-ducal regulation of 8 February 2008, concerning certain definitions of the law of 20 December 2002 relating to undertakings for collective investment (as amended). 

Number of funds 

Overall 3,425 funds

By category 

Total FCP                    1,936
Total SICAV                1,471
Total Others                 18
Total                              3,425

2002 Law, Part I

FCP                            1,209
SICAV                         640
Others                         0
Total                            1,849

2002 Law, Part II

FCP                            302
SICAV                        383
Others                         8
Total                            693

SIF 

FCP                            425
SICAV                         48
Others                         10
Total                            883

(situation as for 31/05/09)

administered fund assets 

Total
FCP                            565,674
SICAV                        1,049,842
Others                         3,753
Total                           1,619,269

2002 Law, Part I

FCP                            408,897
SICAV                         834,811
Others                         0,000
Total                            1,243,508

2002 Law, Part II

FCP                             1,956
SICAV                         152,600
Others                          1,070
Total                             235,626

SIF 

FCP                            75,021
SICAV                        62,431
Others                         2,683
Total                           140,135

(in bn EUR, situation as for 31/05/09)

Regulator

Commission for the Supervision of the Financial Sector (CSSF), 110 route d'Arlon, L-2991 Luxembourg. 

Double Taxation Treaties

With 52 countries (as at June 2008): South Africa; Germany; Austria; Belgium; Brazil; Bulgaria; Canada; China (P.R.); Korea (Republic of); Denmark; Spain; Estonia; United States of America; Finland; France; Greece; Hong Kong; Hungary; Mauritius; Indonesia; Ireland; Iceland; Israel; Italy; Japan; Latvia; Lithuania; Malaysia; Malta; Morocco; Mexico; Mongolia; Norway; Uzbekistan; Netherlands; Poland; Portugal; Czech Republic; Romania; United Kingdom; Russia; San Marino; Singapore; Slovakia; Slovenia; Sweden; Switzerland; Thailand; Trinidad & Tobago; Tunisia; Turkey; Vietnam. 

There are currently 22 new double taxation treaties under negotiation or awaiting for approval by the Luxembourg Parliament (i.e. Albania; Argentina; Armenia; Azerbaijan; Bahrain; Barbados; Cyprus; Georgia; India; Kazakhstan; Kuwait; Kirghizstan; Lebanon; Moldavia; Macedonia; Pakistan; Qatar; Serbia and Montenegro; Syria; Ukraine; United Arab Emirates; United Kingdom (new convention under discussion)).

ALTERNATIVE FUND, MANAGER and SERVICE PROVIDER INFORMATION 

Types of alternative fund vehicle
Open-ended investment company
• Investment company with variable capital (société d'investissement à capital variable) (SICAV);
• Investment company with fixed capital (société d'investissement à capital fixe) (SICAF).
Close-ended investment company
• Close-ended SICAF;
Common Contractual Fund (similar to unit trust in UK law)
• Common fund (fonds commun de placement) (FCP).

Available types of corporate vehicle

Under the 2002 Law
SICAVs under the 2002 Law must be set up as public limited companies (S.A.s).

Under the SIF Law
SICAV / SICAF may be set up as a:
• Public limited company (S.A.)
• Partnership limited by shares (S.C.A.)
• Private limited liability company (S.à.r.l.)
• Co-operative organised as an S.A.

Audit requirement
• Audit requirements governed by Article 113 of the 2002 Law and Circulars 02/77 and 02/80
• Luxembourg regulation requires that all Luxembourg Funds be audited at least annually by a Luxembourg auditor, approved by the CSSF (for certain funds semi-annually)
• The auditor must be a member of the Luxembourg Institute of Auditors (Institut des Réviseurs d'entreprises - IRE)

Financial statement requirements

2002 Law

• Audited annual financial statement (is to be published within 4 months of the financial year end, and be available 15 days prior to the annual general meeting of shareholders)
• Unaudited semi-annual financial statement is to be published and sent to the CSSF within 2 months of the period end  

SIF Law 

• Audited annual financial statement (must be available to investors within 6 months of the end of the financial year)
regulatory fees

CSSF fees 

Funds set up under the 2002 Law

• EUR 2,650 for a single compartment fund
• EUR 5,000 for a multiple compartment fund

Funds set up under the SIF Law

• EUR 1,500 for a single compartment fund
• EUR 2,650 for a multiple compartment fund

Overall cost of fund establishment 

Regulatory fee:

Funds set up under the 2002 Law
• EUR 2,650 for a single compartment fund
• EUR 5,000 for a multiple compartment fund
Funds set up under the SIF Law
• EUR 1,500 for a single compartment fund
• EUR 2,650 for a multiple compartment fund

Luxembourg and EU-domiciled UCIs

• Listing fee: EUR 1,250
• Visa fee (for EU-domiciled funds other than in Luxembourg): EUR 1,250
• Maintenance fee

EUR 1,875 for 1st line of quotation
EUR 1,250 for 2nd line of quotation
EUR 875 for 3rd line of quotation
EUR 500 for the 4th and following lines of quotation
Non EU-domiciled UCIs

• Listing fee: EUR 2,500
• Visa fee: EUR 2,500
• Maintenance fee

EUR 2,500 for 1st line of quotation
EUR 1,875 for 2nd line of quotation
EUR 1,250 for 3rd line of quotation
EUR 625 for 4th and following  line of quotation
Regulatory approval time (by the CSSF) 

Funds set up under the 2002 Law

4/8 weeks.

Funds set up under the SIF Law

No prior authorisation required.


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