Regulations Applicable to RAIF, the New Investment Tool in Luxembourg

Written by: Bridgewest

Regulations-Applicable-to-RAIF-the-New-Investment-Tool-in-Luxembourg.jpgThe experts in finance in Luxembourg have recently created a new investment scheme, by introducing the Regime for Alternative Investment Funds (RAIF), which was created in order to simplify the activity of alternative investment funds, which required the approval from the Financial Sector Supervisory Commission (CSSF), the main regulatory body for such funds. The new legislation will be available in 2016, but the exact date hasn’t yet been presented. Our team of financial experts can provide an in-depth presentation on the RAIF and assistance for the incorporation of a fund in Luxembourg

 

The RAIF Bill in Luxembourg 

 
The RAIF legislation was deposited as a bill at the Luxembourg’s Parliament on 14 December 2015 in order to introduce a simplified investment tool available for local and foreign investors. The RAIF bill asserted that alternative investment fund should start its operations without prior approval from the CSSF, in order to access in a faster manner the directive referring to the marketing passport; our team of financial specialists can provide more details on the provisions of the law. 
 
Some of the most important aspects of the RAIF refer to the following: 
 
flexibility;
easier access to market;
protection under the regulation of Alternative Investment Fund Manager Directive (AIFMD)

 

RAIF, addressed to professional investors  

 
The legislation prescribes that the RAIF is available for investors with a high degree of understanding of the financial mechanism. According to the law, RAIF investors are defined as follows: 
 
institutional investors;
professional investors;
well informed investors, who can confirm in writing their statute. 

 

Business forms of the RAIF in Luxembourg 

 
The RAIF will have to be registered under a business form, which will influence the taxation system applicable to this new investment tool
 
The legislation prescribes that the RAIF can have no legal personality, while the capital of fund can be either fixed (SICAF) or variable (SICAV). In this situation, the RAIF can be registered under the following legal entities: 
 
limited company;
partnership limited by shares;
limited partnership;
limited liability company;
special limited partnership;
public limited company;
common fund. 
 
Businessmen interested in receiving further details on the regulations applicable to the RAIF can address to our team of financial consultants for assistance on this matter. 
 

Comments

  • Thomas 2016-08-25

    Although I am not familiar with the RAIF concept, from what I've read it should have positive effects on the activity of such funds and, naturally, on the investors as well.

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