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ARTICLE · 01 DECEMBER 2015

RAIF: Unregulated Funds Coming Soon To Luxembourg

Chevalier & Sciales
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At its meeting on November 27 the Luxembourg government formally approved draft legislation creating a new type of fund vehicle, the restricted alternative investment fund (fonds d'investissement alternatif reservé).

LuxembourgFinance and Banking
Olivier Sciales
Olivier Sciales
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At its meeting on November 27 the Luxembourg government formally approved draft legislation creating a new type of fund vehicle, the restricted alternative investment fund (fonds d'investissement alternatif reservé). The most important characteristic of the RAIF (or FIAR, its French acronym) is that it is not subject to regulation by the Financial Sector Supervisory Authority (CSSF), although it must have an authorised manager. Further details of the fund and its requirements will become clear once the parliamentary bill has been published.

In a statement, the government says it is designed to benefit from the structuring flexibility of non-UCITS collective investment vehicles, specialised investment funds (SIFs) and risk capital investment companies (SICARs). However, the system of dual supervision of managers and funds applicable to these vehicles, which adds costs and places restrictions on the management of the funds, may not be necessary or desired by

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