UCITS Table
| UCITS | |
|---|---|
| Practical use | Highly regulated vehicle which can be sold to all types of investors and cross-border into any other EU Member State. |
| Applicable legislation | Law of 17 December 2010 Part I (“UCITS Law”) |
| Eligible investors | Unrestricted. |
| Eligible assets | Restricted to: - transferable securities; - money market instruments; - units of UCITS and/or UCIs; - bank deposits; - financial derivative instruments, - ancillary liquid assets eligible up to 49% according to market practice; and hedge fund indices. 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 invest no 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. |
| 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 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. |
| 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 | Yes. |
| Thin capitalization rules (debt-to-equity ratio) | Borrowing 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. |
| Required Luxembourg service providers | - Management Company in case of an FCP - Depositary institution - Administrative agent - Registrar and Transfer Agent - Independent auditor |