The Law of 21 July 2023 amending the UCI Law, the SIF Law, the SICAR Law, the AIFM Law and the RAIF Law (together the "Product Laws") has been published. By amending these laws, Luxembourg aims to improve and modernise its fund toolbox as well as increase the attractiveness and competitiveness of the Luxembourg financial centre. This law not only harmonises the rules of the Product Laws, but also responds to business requirements.
The main changes to the Product Laws are:
" Change of investor threshold in the SICAR, SIF, and RAIF Laws
" Extension of the ramp up period to reach 24 months for SICARs, SIFs and RAIFs and 12 months for Part II funds
" Possibility for Part II SICAV to set up as SCS, SCSp, Sàrl, SCS and SA
" Removal of the constat de RAIF and clarification that marketing RAIFs to well-informed investors in Luxembourg is permitted
" Possibility for closed-ended Part II funds to issue and redeem securities or partnership in accordance with the conditions and procedures set out in the articles of association or the partnership agreement
" Subscription tax exemption for SIFs, RAIFs and Part II funds structured as an ELTIF or as a PEPP
In the AIFM Law, the changes are:
" Possibility for an AIFM to appoint tied agents
" Marketing to retail investors allowed as long as these
qualify as well-informed investors under the SICAR Law or the SIF
Law
" Clarification of the terms for replacement of a depositary in the SICAR, SIF and UCI Laws
" Improvement and harmonisation of the rules relating to dissolution of investment funds or fund managers
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.