A licensed manager cannot be a custodian and cannot be a credit institution or investment firm under Luxembourg`s financial sector law of 5 April 1993. However, a registered manager may combine the status of a credit institution or investment firm under the 1993 Act. Directors and others involved in the management of the Fund are not required to qualify to be “well informed” to invest in the fund. What is the territorial application of the regulation of funds? Can a foreign officer carry out management activities or provide services to clients in your jurisdiction without authorization? A SICAR can generally be described as a tax-neutral vehicle for private equity investments. Any preferential treatment granted to investors must also be disclosed in the AIF`s constituent documentation. Managers who use leverage for investment purposes are subject to additional advertising obligations. A Luxembourg director must obtain prior authorisation from the CCRF and meet certain minimum requirements, including: equity; Appropriate infrastructure and internal governance Authorized participation and administration; external audit. A manager must at least assume portfolio and risk management functions when managing an AIF. Once the regulated fund (before Luxembourg notary or, depending on the legal form of the fund, in private form) is established and all agreements with service providers are concluded, copies of the Fund`s constitution document and fully implemented agreements must be filed with the CSSF, as well as the final version of the offer document to be submitted to the CSSF for visa requirements. Subject to satisfactory receipt of all required documents, the CSSF will add the Fund to the corresponding official list of entities subject to prudential supervision and issue the visa-provided offer document. With respect to reporting obligations, the Managers` Act includes obligations that apply to the manager of an AIF with respect to the scope of application. For IFS and SICARs, these requirements apply in addition to the specific reporting rules of the SIF Act or the SICAR Act, which are largely in line with the reporting rules of the AIFM Act. The manager`s reporting framework consists mainly of annual reports, investor information and regulatory requirements.
Annual reports must be prepared at least once a year and within six months from the end of the financial year for each Luxembourg FIA managed or marketed in the EU. Annual reports are reviewed and made available to investors on request and the CSSF. Advertising obligations include the disclosure of certain information that must be made available to investors before investing in the fund (usually contained in an offer document). This information includes the investment strategy and objectives of the Alternative FONDS, the techniques it uses and the risks associated with it, the use of levers and guarantees, and the procedures for issuing and selling shares, shares or shares. Other aspects that need to be disclosed are: How is fund management regulated in your jurisdiction? Who are the authorities who are the primary regulators of funds, fund managers and this marketing fund? However, product rules, such as the SIF Act and the SICAR Act, require that the offer document or prospectus of the hedge fund contain the information necessary to enable investors to make an informed judgment about the investment proposed to them and, in particular, about the risks associated with it. It is necessary to modify the documentation of the FONDS fund (i.e. the offer of memorandums, statutes or limited partnership agreements) to take into account the provisions of current Luxembourg legislation (including, if necessary, product legislation).