|Applicable legislation||Law of 17 December 2010 - Part I (“UCITS Law”)
|Authorisation and supervision by the CSSF||Yes|
|Qualification as an AIF||No.|
|Exemption from AIFMD full regime under lighter regime (AIFMD registration regime)||Not applicable.|
|Eligible assets||Restricted to transferable securities admitted or dealt on a regulated market, investment funds, financial derivative instruments, cash and money market instruments that are in compliance with article 41 of the Ucits law and the relevant EU directives and regulations.Please note that the eligibility of the asset must be ascertained on a case-by-case basis in view of the applicable laws and regulatory practice.|
|Risk diversification requirements||Risk diversification requirements are provided by articles 42 et seq. of the UCITS Law, e.g. (not exhaustive):
- a UCITS may not invest more than 10% of its assets in transferable securities or money market instruments issued by the same body;
- a UCITS may not invest more than 20% of its net assets in deposits made with the same body;
- the global exposure relating to derivative instruments does not exceed the total net value of the UCITS portfolio.
|Legal Form||- FCP
- SICAV (SA)
- SICAF (SA,SCA)
All of these entities must be open-ended.
|Capital requirements||- FCP:
EUR 1,250,000 to be reached no later than 6 months following the authorisation by the CSSF.
- Self managed SICAV / SICAF:
EUR 300,000 at the date of authorisation and EUR 1,250,000 within 6 months following its authorisation.
|Required Luxembourg service providers||- Management Company in case
of an FCP
- Depositary institution
- Administrative agent
- Registrar and Transfer Agent
- Approved statutory auditor
|Possibility of listing||Yes|
|Net asset value (NAV) calculation and redemption policy||The UCITS must make public the issue, sale and repurchase price of their units each time they issue, sell and repurchase their units, and at least twice a month.|
|Overall income tax (corporate income tax and municipal business tax)||No income tax.|
|Subscription tax||- Rate: 0.05% of the NAV annually.
- Reduction: 0.01% of the NAV annually 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.|
|Benefit from double tax treaty network||- SICAV/SICAF: Limited to certain double tax treaties (see circular L.G. -A n°61 of the tax administration of 8 December 2017).
- FCP: see circular L.G.-A n°61 of the tax administration of 8 December 2017.
|Benefit from the EU Parent Subsidiary Directive||No.|
|Thin capitalization rules (debt-to-equity ratio)||Borrowings of up to 10% of net assets to finance redemptions (it should be a short term borrowing and cannot be for investment purposes) or to buy real estate for its business. The total borrowing under the above may not exceed 15% of net assets.|
|Practical use||Highly regulated vehicle which can be sold through a EU passport to all types of investors (such as retail investors, professional investors, institutional investors).|