Bearer Share Regime - Main Features And Upcoming Deadlines

The law on the immobilisation of bearer shares (the "Law") entered into force in Luxembourg on August 18^th 2014 (the "Effective Date"). The Law aims to facilitate anti-money laundering efforts by improving transparency with regard to the identity of shareholders in Luxembourg companies.

The Law applies to bearer shares or units issued by the following commercial entities:

1. SAs (société anonyme);
2. SCAs (société en commandite simple); regulated investment funds (SICAVs (société d'investissement à capital variable) and SICAFs (société d'investissement à capital fixe); and
3. contractual co-ownership schemes (fonds commun de placement).

Main features

The Law requires shares or units issued in bearer form to be deposited with a depositary authorised under the Law (the "Depositary"). Persons authorised to act as a Depositary include: credit institutions; asset managers; domiciliation agents; lawyers; auditors; accountants; and notaries.