A Guide To Unregulated Securitisation Vehicles In Luxembourg

Introduction

With more than 1,000 securitisation vehicles and thousands of related compartments, the Luxembourg securitisation market has enjoyed a continuous and steady growth. It is also forecast that this well-established trend will continue to gain further strength in the coming years.

As a leading hub in Europe for securitisation and structured finance transactions, Luxembourg offers a pragmatic and secure legal and tax regime which allows the securitisation of virtually an unlimited range of risks, through different forms of securitisation vehicles (SVs) with reduced complexities and almost full tax neutrality.

The regime that developed in practice following the statutory framework created by the Luxembourg Securitisation Law of 22 March 2004, as amended from time to time, (the Securitisation Law) and the regulatory guidance issued by the Luxembourg Financial Sector Supervisory Authority (the CSSF) in the form of published Q&As has therefore led to a