UCITS Table

 UCITS
Practical useHighly regulated vehicle which can
be sold to all types of investors and
cross-border into any other EU
Member State.
Applicable legislationLaw of 17 December 2010
Part I (“UCITS Law”)
Eligible investorsUnrestricted.
Eligible assetsRestricted 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 requirementsRisk 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 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 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 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 passportYes.
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