Wed, Nov 25, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Luxembourg issues new rules on special investment funds

Monday, March 26, 2012

Bailey McCann, Opalesque New York: Earlier this month, the Luxembourg Parliament amended its rules for specialized investment funds (SIFs). The rules provide additional guidance to a law passed in February 2007 in order to bring the country in line with requirements in the Alternative Investment Fund Managers Directive (AIFMD).

Luxembourg is making an effort to increase the popularity of SIFs as they are faster to set up and authorize. According to a client alert from Laven Partners, obtained by Opalesque, the key point of the new law is a set of restrictions on the delegation of investment management responsibilities to third parties. Any third party chosen from now on must be authorized or registered specifically as an asset manager.

Investment management can be delegated to portfolio managers outside of the EU only as long as there is an agreement between Luxembourg’s regulator Commission de Surveillance du Secteur Financier (CSSF) and the regulatory authority of the non-EU country. If a fund wants to delegate investment management to a firm other than an asset manager, that firm will have to be specially approved by the CSSF. Funds will also have to undertake due diligence on any third party they delegate to in order to verify that they can perform the required functions. In order to operate as a SIF core investment management functions can not be managed by the depositary.

Going forward, any new SIF will also have to be approved by the CSSF before they can s......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. Investing - BlackRock targets ETF investors with flexible currency hedging, Nelson Peltz bets on General Electric Company and Mondelez International, Apple plummets to 4th place among hedge holdings, from No. 1, Top Q3 equity purchases and sales of top 50 hedge funds[more]

    BlackRock targets ETF investors with flexible currency hedging From BlackRock Inc., the world’s largest asset manager, is changing course on exchange-traded funds that protect against currency volatility. After stressing the easy switch between hedged and unhedged ET

  3. BlackRock is shutting down its Global Ascent macro fund[more]

    Komfie Manalo, Opalesque Asia: BlackRock, the world’s largest asset manager, has announced plans to shut down a macro fund, Global Ascent Fund, because of "headwinds facing the industry". The hedge fund, which makes bets on stock, bond and currency markets, will return money to investors. Ac

  4. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  5. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega