FUND LEGISLATION
FUND LEGISLATION
– 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 | 3,012 |
| Total FCP | 1,730 |
| Total SICAV | 1,270 |
| Total Others | 12 |
| Total | 3,012 |
2002 Law, Part I
| FCP | 1,093 |
| SICAV | 607 |
| Others | 0 |
| Total | 1,700 |
2002 Law, Part II
| FCP | 261 |
| SICAV | 394 |
| Others | 8 |
| Total | 663 |
SIF
| FCP | 376 |
| SICAV | 269 |
| Others | 4 |
| Total | 649 |
(situation as for 31/03/08)
ADMINISTERED FUND ASSETS
Total
| FCP | € 700.961 |
| SICAV | € 1,192.403 |
| Others | € 2.071 |
| Total | € 1,895.445 |
2002 Law, Part I
| FCP | € 528.144 |
| SICAV | € 952.208 |
| Others | € 0 |
| Total | € 1,480.352 |
2002 Law, Part II
| FCP | € 99.017 |
| SICAV | € 191.647 |
| Others | € 1.950 |
| Total | € 292.614 |
SIF
| FCP | € 73.800 |
| SICAV | € 48.558 |
| Others | € 0.121 |
| Total | € 122.479 |
(in bn EUR € )
REGULATOR
Commission for the Supervision of the Financial Sector (CSSF), 110 route d’Arlon, L-2991 Luxembourg.
SERVICE PROVIDERS
Law firms
16 law firms specialised in investment funds.
Administrators
. Etablissement de droit public Luxembourgeois: 2
. Sociétés anonymes de droit Luxembourgeois: 100
. Sociétés en commandite par actions de droit luxembourgeois: 3
. Sociétés coopératives de droit luxembourgeois: 2
. Caisse rurales: 13
. Banque d’émission de lettres de gage: 5
. Succursales d’établissement de crédit d’origine non communautaire autorisées au Luxembourg sur base de l’article 32 de la loi modifiée du 5 avril 1993: 8
. Succursales d’établissement de crédit d’origine communautaire et assimilés autorisées au Luxembourg sur base de l’article 30 de la loi modifiée du 5 avril 1993: 34
. Succursales d’établissement financier d’origine communautaire autorisées au Luxembourg sur base de l’article 31 de la loi modifiée du 5 avril 1993: 1
Accountants/auditors
5 major firms Specialised in this field (Deloitte, KPMG, Ernst & Young, PWC, ATOZ).
Local stock exchange
Luxembourg Stock Exchange (LSE).
Local fund industry body
Association of Luxembourg Fund Industry (ALFI).
Promotion agency for funds/financial sector
Luxembourg Fund Labelling Agency (LuxFLAG).
DOUBLE TAXATION TREATIES
With 51 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; 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; Ukraine; Vietnam.
And a Convention in 2006 with the 9 of the 10 EU Member States which joined in 2004 (Czech Republic, Estonia, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia, Slovakia).
TAX INFORMATION EXCHANGE AGREEMENTS
. Application of the EU Savings Directive, which came into effect on 1 July 2005;
. Introduced in clauses in each double taxation treaty.
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;
. Close-ended FCP (Fond Commun de Placement).
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 annually by a Luxembourg auditor, approved by the CSSF
. 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.
