Managing The Complexity Of Luxembourg Structuring And Product Options

Brexit has unleashed a tsunami of interest in Luxembourg funds, but anyone from the UK picking-up with a local adviser is likely to be confronted by a bewildering matrix of different products (such as UCITS, Part II's, SIFs, SICARs, RAIFs, SVs, Soparfis, ETFs, EuVECAs, EuSEFs, ELTIFs and MMFs) that can take numerous different forms (most commonly, one or more of SICAVs, SICAFs, FCPs, funds, SCAs, SCSs, SCSps, SAs and Sarls) and be listed or listed and traded on a range of different exchanges and markets (such as LxSE or TISE).

This broad spectrum of options in 2018 reflects the rich legal heritage of Luxembourg that makes use of international concepts to accommodate all types of investor. This is a huge plus for industry and an obvious draw for Luxembourg, but, unfortunately, such complexity can also leave UK-based sponsors unsure where to start. This problem can easily be avoided though, if industry sticks to the essentials.