Non-UCITS Depositaries: New CSSF Circular

Luxembourg's CSSF imposed a €56,000 fine on Stonehage Fleming Luxembourg S.A. for multiple compliance failures, including significant delays in processing sanctions screening alerts and implementing changes to screening lists. At the time of inspection, hundreds of alerts had been treated with substantial delays and 42 alerts remained completely unnoticed by the financial services provider.

The new regime will apply automatically to sub-participation agreements signed after the law takes effect, though parties can contract out of it. For agreements already in place, it doesn't apply automatically, consistent with non-retroactivity, but parties can choose to opt in.

US fund managers establishing Luxembourg special limited partnerships face critical decisions about board composition and liability exposure.

Luxembourg is poised to expand its investment fund structuring capabilities by allowing alternative investment funds structured as common or special limited partnerships to establish...

Luxembourg has introduced a landmark legislative reform allowing unregulated alternative investment fund (AIF) limited partnerships to adopt multi-compartment structures. This development enables fund sponsors to consolidate multiple investment strategies, investor classes, and fund-level structures within a single limited partnership, significantly reducing complexity and administrative burden while maintaining creditor protection and investor segregation.

Luxembourg is poised to expand its fund structuring capabilities by allowing common and special limited partnerships (SCS and SCSp) that operate as alternative investment funds to establish ring-fenced compartments...

Bill of Law No. 8813 introduces a statutory asset segregation regime for funded sub-participations in Luxembourg, materially improving participant protection by reducing exposure to lender insolvency risk. The reform is expected to increase the attractiveness of Luxembourg-based lending structures across loan, private credit, and structured finance markets.

On 30 July 2026, Bill of Law n° 8814 (“Bill of Law”) was introduced to the Luxembourg Parliament with a view to amending the law of 12 July 2013 on alternative investment fund managers, as amended (“AIFM Law”).

Luxembourg is poised to introduce a statutory compartment regime for unregulated SCS and SCSp alternative investment funds (AIFs), decoupling this feature from product-law wrappers like RAIFs. The draft bill would enable managers to establish legally segregated pools within a single AIF structure, mirroring mechanics familiar from existing Luxembourg fund regimes while preserving flexibility in documentation and disclosure.

On 8 June 2026, draft law No. 8761 amending the amended law of 22 March 2004 on securitisation (the “Securitisation Law”) (the “Draft Law”) was submitted to the Luxembourg Parliament