UCI Table
| UCI | |
|---|---|
| Practical use | Investment funds which do not meet the criteria set by the EU Directives. |
| Applicable legislation | Law of 17 December 2010 Part I (“UCITS Law”) |
| Eligible investors | Unrestricted. |
| Eligible assets | Unrestricted The investment objective and strategy of the fund is subject to the prior approval of the CSSF |
| Risk diversification requirements | Risk diversification requirements are defined by IML Circular 91/75 (as amended by CSSF Circular 05/177). Such requirements are less stringent than the ones applicable to UCITS. In particular, a UCI is not allowed to invest more than 20% of its net assets in securities issued by any one issuer. Specific restrictions concerning funds adopting an alternative investment strategy are contained in CSSF Circular n° 02/80. |
| Legal Form | - FCP - SICAV (SA) - SICAF (SA,SCA) All of these entities must be open-ended. |
| Segregated compartments | Yes |
| Capital requirements | - FCP: EUR 1,250,000 to be reached within 6 months from the approval by the Luxembourg regulator. - Self managed SICAV / SICAF: EUR 300,000 at the date of authorisation and EUR 1,250,000 within 6 months following its authorisation. |
| Net asset value (NAV) calculation and redemption policy | The UCIs must make public the issue, sale and repurchase price of their units each time they issue, sell and repurchase their units, and at least once a month. |
| Corporate income tax | No corporate income tax |
| Subscription tax | - Rate: 0.05% of the NAV - Reduction: 0.01% of the NAV in certain specific cases) - Tax exemptions: special institutional money market cash funds, special pension funds (including pension pooling vehicles) and funds investing in other funds which are already subject to subscription tax. |
| Wealth tax | No wealth tax. |
| Withholding tax on dividends / interests and capital gains | Not subject to withholding tax except if EU Savings Directive applies. |
| Benefit from double tax treaty network | - Limited to funds set-up in the form of a SICAV / SICAF only. - Limited to certain double tax treaties. |
| Benefit from the EU Parent Subsidiary Directive | No |
| Authorisation and supervision by the CSSF | Yes |
| Possibility of listing | Yes |
| European passport | No, unless it falls under the scope of the full AIFMD regime |
| Thin capitalization rules (debt-to-equity ratio) | Borrowing of up to 25% of net assets without any restrictions are allowed. |
| Required Luxembourg service providers | - Management Company in case of an FCP - Depositary institution - Administrative agent - Registrar and Transfer |