LUXEMBOURG: Luxembourg adopts law on specialised investment funds

Tuesday February 13 2007

On 12 October 2006, Funds-Axis reported that in Luxembourg draft legislation on Specialised Investment Funds had been submitted to Parliament for approval. The Luxembourg Parliament has now adopted the law and it came into effect on 13 February 2007. This law replaces the law of 1991 on institutional funds. All institutional funds existing under the 1991 Law will be converted into specialised investment funds and governed by the new law. In contrast to the law of 1991, the concept of eligible investors extends beyond institutional investors to cover professional investors and sophisticated retail or private investors who invest a minimum of 125,000 Euro. The principle of risk spreading is maintained, but there are no quantitative investment limits.

The text of the new law can be found at the above link. The English version can be found at this link – http://www.alfi.lu/uploads/media/Specialised_investment_funds_law_of_13February2007.pdf