Luxembourg ranks as the largest EU fund domicile jurisdiction
and the second largest fund domicile jurisdiction globally.
The EU Directive 2002/47/EC on financial collateral arrangements
(the Directive) was implemented in Luxembourg with
the law of 5 August 2005 on financial collateral arrangements (the
Financial Collateral Law). In enacting the
Financial Collateral Law, Luxembourg seized the opportunity to
implement a modern security interests law with a scope broader than
the Directive and with enhanced creditor protection, a move which
has led to emergence of Luxembourg's reputation as a secure,
global domicile for financing transactions.
The result is an attractive, secure legal framework that works
strongly to the benefit of secured finance parties in transactions
involving Luxembourg obligor corporate and fund structures granting
security and, consequently, fund promoters seeking investment
financing solutions.
