UCI Table

 UCI
Practical useInvestment funds which do not meet
the criteria set by the EU Directives.
Applicable legislationLaw of 17 December 2010
Part I (“UCITS Law”)
Eligible investorsUnrestricted.
Eligible assetsUnrestricted
The investment objective and strategy of the fund is subject to the prior approval of the CSSF
Risk diversification requirementsRisk 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 compartmentsYes
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 policyThe 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 taxNo 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 taxNo wealth tax.
Withholding tax on dividends / interests and capital gainsNot 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 DirectiveNo
Authorisation and supervision by the CSSFYes
Possibility of listingYes
European passportNo, 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