The Legal 500

Martine Gerber-Lemaire writes on how the implementation of Directive 2001/24/EC on the reorganisation and winding up of credit institutions in five European countries has led to the acknowledgment of heterogeneous insolvency regimes in the EU

The European Union's latest directive on undertakings for collective investment in transferable securities, known as Ucits IV, which was formalised on July 13, 2009,will take effect from July 1 this year, the deadline for transposition of the directive into the national law of EU member states. Luxembourg became the first member state to do so on December 17, 2010.

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 specialized 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 harmonized European retail fund vehicles that can be sold globally and which benefit from the European passport enabling investment managers to easily market their funds within the EU.

What is the structure of the civil court system? The Luxembourg court system is organised according to the principle of ‘double court instance’, pursuant to which any case may be judged twice by two different courts, both upon the factual and legal merits. As a result, a major distinction is to be drawn up between the first degree courts and the courts of appeal.

By the law of 1 August 2007 the Grand-Duchy of Luxembourg adopted the United Nations convention on corruption opened to signatories in Merida on 9 December 2003.

The Commissariat aux Assurances (the Commissariat) is in charge of the supervision of insurance and reinsurance undertakings, as well as insurances intermediaries (agents and brokers). It is in charge of examining the applications for licences. The Commissariat also assists the Luxembourg public authorities in European and international negotiations. It takes an active part to the preparation of Luxembourg laws and regulations within its field of competence.

Business in the Grand-Duchy of Luxembourg (the “GDL”) may be carried out by individual trader(s) or by way of forming a corporate entity, whereby a separation of personal and corporate assets may be ensured by lodging such assets in the separate legal entity. Read more...

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