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ARTICLE · 31 MARCH 2016

Proposed Luxembourg Legislation Introduces Changes Affecting SIFs, SICARs And Part II UCIs

Chevalier & Sciales
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The Luxembourg government has placed before parliament on January 18 draft legislation amending provisions relating to SIFs, SICARs and non-UCITS funds issued under Part II of the grand duchy's collective investment fund legislation.

LuxembourgFinance and Banking
Olivier Sciales
Olivier Sciales
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The Luxembourg government has placed before parliament on January 18 draft legislation amending provisions relating to specialised investments funds (SIFs), risk capital investment companies (SICARs) and non-UCITS funds issued under Part II of the grand duchy's collective investment fund legislation. The proposals would notably restrict SIF funds and sub-funds that invest in so-called exotic assets to professional investors, a tighter definition than that for eligibility for SIF investments in general.

Under the SIF law of February 13, 2007, specialised investment funds may invest in virtually any type of asset class, including illiquid and other assets that are hard to value. Investment is restricted to three categories of 'well-informed investor', including professional investors as defined by appendix II to the EU's MiFID II directive and institutional investors. Under existing administrative practice of Luxembourg's Financial Sector Supervisory Authority, the

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