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Blog: Luxembourg Blog | 11 July 2019
The Luxembourg Bill 7349 has been adopted by the Luxembourg Parliament on 11 July 2019 (Law).
The purpose of the Law (1) is to adopt the long overdue implementing measures relating to EuVECA, EuSEF, ELTIF, MMFs and STS.
Further, with the respect to RAIFs the Law (i) provides for the conditions to transform an FCP into a SICAV and (ii) clarifies the applicable conditions to act as management company of FCPs.
The initial wording of Art. 8 of the RAIF Law led to legal uncertainty for the fund industry in Luxembourg. Indeed, by providing that management companies of FCP – RAIFs have to meet the conditions set out in Article 125-1 or 125-2 of the UCI Law, management companies authorised under Chapter 15 of the UCI Law were excluded from the scope. Hence, so-called "Super ManCos" i.e., management companies with a dual authorization under the UCITS Directive and AIFMD, were precluded from acting as management company of FCP - RAIFs. This was not intended by the spirit of the RAIF Law.
Nearly three years after the enactment of the RAIF Law, this legal uncertainty has now been removed: management companies of FCP – RAIFs must be authorized according to the Chapter 15, 16 or 18 of the UCI Law. This amendment was much awaited by the Luxembourg investment fund community.
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(1) The Law will only become effective once it has been published in the Luxembourg Official Journal.
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