Was Your SIF Set Up Before 2016? Consider A RAIF Conversion While Evaluating The Benefits Of Maintaining A SIF

The Specialised Investment Fund (SIF) regime was established in Luxembourg by the Law of 13 February 2007 (the "SIF Law"). The SIF regime's purpose was to offer great flexibility on investment scope while structuring and providing for an advantageous tax regime. It's regulated at the fund level by the Commission de Surveillance du Secteur Financier (CSSF).

The entry into force of the Alternative Investment Funds Managers Directive (AIFMD), particularly Recital 10, "This Directive does not regulate AIFs," took the discussion of the regulation at the fund level a bit further. Indeed, there's a double layer of supervision in Luxembourg's regulatory framework: direct supervision from the CSSF and indirect supervision from the alternative investment fund manager (AIFM), which is also regulated by the CSSF.