On 11 July 2023, the Luxembourg Parliament voted a new law improving and upgrading the Luxembourg investment fund toolbox ("Law"), which is likely to reflect the attractiveness and competitiveness of the Luxembourg financial centre.
By modernising the Luxembourg investment fund toolbox, the Law increases in particular structuring options and flexibilities for democratised private asset vehicles, including Part II funds and RAIFs. It also introduces certain targeted modifications, adjustments and harmonisation of the UCI, SIF, SICAR, RAIF and AIFM Laws, including certain amendments to and new exemptions from the subscription tax.
Provided that the Conseil d'Etat grants dispensation to the second vote, the new Law may, after its promulgation by the Grand Duke, be published in the Luxembourg Memorial which could occur in July or August 2023. The new Law, as well as the amendments it introduces in the UCI, SIF, SICAR, RAIF and AIFM Law, should in principle enter into force on the fourth day following this publication. Only a few limited transitional provisions are foreseen.
More details on the key amendments for Luxembourg UCITS, Part II UCIs, SIFs, SICARs, RAIFs and their UCITS ManCos or AIFMs can be found in our Article published in April 2023.
Elvinger Hoss will be happy to assist you to identify which of these amendments may be relevant for your business, and to review your fund documentation as applicable (e.g. constitutive documents, prospectus, depositary and other agreements) with a view to ensuring that it fits with your business needs and the new flexibilities offered by the Law.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
