Investments Law Blog

Representatives of the European Parliament, the European Commission and European Union member states have endorsed with minor changes the version of the Directive on Alternative Investment Fund Managers agreed last week by EU economic affairs and finance ministers.

The accord by the so-called ‘trialogue’ meeting means that both the Parliament and the European Council, which in May approved conflicting drafts of the directive, have now signed up to the compromise... Read More

UK finance minister George Osborne and his French counterpart, Christine Lagarde, are expected to hold discussions next week (between 18 October and 23 October) on the European Union’s Directive on Alternative Investment Fund Managers ahead of a full meeting of the EU Council of economic affairs and finance ministers.

Talks in Brussels on Wednesday between member states’ ambassadors to the EU failed to resolve continuing differences over the rules governing access to EU... Read More

Talks are continuing on a fresh compromise draft of the Directive on Alternative Investment Fund Managers issued by the Belgian EU presidency last week despite the failure of representatives of the European Parliament, the European Commission and member states to reach agreement at a meeting in Brussels on Monday, October 11.

The new round of meetings, which was scheduled to continue on Tuesday, follows France’s indication that it is willing to compromise by allowing funds and... Read More

Luxembourg politicians and officials have expressed confidence that the European Union’s AIFM Directive will soon win final approval dispute this week’s latest dispute between member states on the contentious issue of access to EU markets for managers and funds based outside the union.

Speaking to delegates at the annual investment fund conference organised by the Luxembourg fund association Alfi and US trade body Nicsa on 27 -28 September, the country’s finance... Read More

The European Union’s economic affairs and finance ministers holding informal talks in Brussels in a bid to break a fresh deadlock over the way the proposed AIFM Directive treats alternative investment managers and funds based outside the 27-member union.

According to media reports, France is now ready to block any proposal that would give non-EU funds a passport that would mean once approved in one EU country, the funds could be distributed freely in other member states in the... Read More

Luxembourg’s fund industry is keenly awaiting the outcome of negotiations between the European Union’s legislative institutions on the final form of the proposed Directive on Alternative Investment Fund Managers. Finalisation of the directive could open up new opportunities for Luxembourg as a domicile and servicing centre for alternative funds, but the EU has been slow to reach agreement on a number of outstanding issues, notably the treatment under the directive of managers... Read More

I.  Introduction

Well established as a world leader in the investment funds industry (second only to the USA), Luxembourg firmly held its position throughout the economic crisis, totalling EUR 1,840.993 billion net assets under management as at 31 December 2009. This five decade long success story originates from a continuing intention on the part of the local authorities to make the most of promising opportunities in the financial market. Islamic Finance is... Read More

In its circular 08/376 regarding financial information to be submitted by investment companies in risk capital (SICARs), the Luxembourg regulatory authority (Commission de Surveillance du Secteur Financier or CSSF), as competent authority to exercise the supervision within the meaning of article 11(1) of the Law of 15 June 2004 relating to the investment companies in risk capital, as amended or supplemented from time to time (the “SICAR Law”), requires all... Read More

Luxembourg is, behind the USA, the world’s second ranking financial centre for the domicile and servicing of investment funds. Since 1959, when the first fund was established, the investment fund industry hugely expanded, counting 3,457 funds as of 30 September 2009. This success originated with the authorities' encouraging attitude to foreign capital and investment, and was considerably strengthened by its prime location in the heart of Europe - close to the main markets targeted by... Read More

For a long time, Luxembourg hedge funds and funds of hedge funds have been set up under several wrappers, namely funds submitted under part II of the law of 20 December 2002 on UCIs (the “2002” Law) and specialised investment funds (SIF) governed by the law of 13 February 2007 (the “SIF Law”). As of today, hedge fund managers are considering launching UCITS platforms (especially “sophisticated UCITS”). As widely known, UCITS funds are harmonised European... Read More