• Hedge Funds

Applicable legal framework
Hedge funds may be created either as Part II funds, SIFs or even as Part I funds (“Alternative UCITS”) ...

• UCITS

Applicable legal framework

• Part I and Part V of the law of 17 December 2010 on Undertakings for Collective Investment implementing the UCITS IV Directive (the “Fund Law”);
• IML Circular 91/75 of 21 January 1991 clarifying certain aspects of the UCI legislative framework ...

• UCITS IV - Cross-border

From July 2011 the recast UCITS Directive (“UCITS IV”) introduces a new notification procedure for UCITS intending to market cross-border into other EU Member States.

• UCITS IV - Key Investor Information Document (“KIID”)

The UCITS IV Directive provides for the replacement of the simplified prospectus by the KIID. This change is probably one of the most important challenges for the cross-border UCITS industry over the last decade. While UCITS funds existing in Luxembourg as at 30 June 2011 benefit from a grandfathering period of one year to switch from simplified prospectus to KIID, new UCITS structures created on or after 1 July 2011 need to create their KIID right away.

• UCITS IV - Management Company regulation

CSSF Regulation n° 10.4 of 20 December 2010 transposing implementing Directive 2010/43/EU regarding management companies.

• UCITS IV - Master-feeder structures

Master-feeder structures enable strategies in view of pooling funds’ assets and achieving economies of scales. The use of such structures in Luxembourg was always possible for Part II funds or SIFs, but was prohibited for UCITS funds. This changes with UCITS IV and the introduction of rules regarding masterfeeder structures into the UCITS framework.

• UCITS IV - Mergers

The Luxembourg law of 17 December 2010 (the “Fund Law”) offers new opportunities for market consolidation and rationalisation of UCITS structures through the possibility of merging UCITS both on a domestic and cross-border basis.

• Non-UCITS

Applicable legal framework
Luxembourg non-UCITS funds (“Part II” funds) are subject to the following main laws and regulations:

• Part II of the Law of 17 December 2010 on Undertakings for Collective Investment (“the Fund Law);
• IML Circular 91/75 of 21 January 1991 clarifying certain aspects of the UCI legal framework...

• Private Equity funds

Applicable legal framework
Private Equity funds may be created either as SIFs, SICARs or Part II funds of the Fund Law. The choice of the appropriate vehicle depends on the type of investor targeted, the type of investment as well as the flexibility sought in terms of diversification and operation of the fund.

• Real Estate

Applicable legal framework
Real Estate funds1 must be created either as a Part II fund of the Fund Law or as a SIF. The choice of one or the other depends on the type of investor targeted as well as the flexibility sought in terms of diversification and running of the fund.

• Specialised Investment Funds

Applicable legal framework
Luxembourg Specialised Investment Funds (SIFs) are subject to the following main laws of regulation:

• Law of 13 February 2007 on Specialised Investment Funds (“SIF Law”);
• CSSF Circular 07/283 of 28 February 2007 regarding entry into force of the law of 13 February 2007 relating to SIFs...