Fri, Oct 31, 2014
A A A
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. Macks aim to raise $750m for real estate debt fund[more]

    From Therealdeal.com: Father-son duo William and Richard Mack and former Blackstone Group managing director Peter Sotoloff are starting a new real estate debt fund. Together, the trio hopes to raise more than $750 million for the private equity fund, according to the Wall Street Journal. The fund wi

  2. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  3. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  4. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  5. Manager Profile - Seth Klarman: Lessons for retail and institutional investors[more]

    From Valuewalk.com: Seth Klarman is virtually unknown outside value circles, despite his impressive record and value of assets under management. On average Baupost has returned 19% p.a. despite holding a large portion of its assets in cash. During the financial crisis, Seth Klarman’s funds lost some