The specialised investment fund ("SIF") was first introduced by the Law of 13 February 2007 and has since enjoyed great success. The SIF offers a regulated label whilst maintaining flexibility in terms of investment scope and structuring and also benefits from an attractive tax regime. The scope of eligible investors includes not only institutional investors but also other types of well-informed investors, such as sophisticated private investors.
The SIF regime was amended by the Law of 12 July 2013 on Alternative Investment Fund Managers ("AIFM Law") which transposes the AIFMD1 into Luxembourg law. Although the AIFM Law mainly regulates alternative investment fund managers ("AIFM(s)"), it also contains various provisions that apply to alternative investment funds ("AIF(s)"), for which SIFs may qualify.
The amended Law on SIFs ("SIF Law")2 is divided into two parts. The first part contains the general provisions applicable to all SIFs, while the second part contains specific provisions applicable only to those SIFs which qualify as AIFs and which are required to be managed by an authorised AIFM ("SIF AIF(s)") and to meet the requirements of the AIFM Law
In addition to the AIFM Law, the following EU regulations may offer new opportunities to certain SIFs:
- the Venture Capital Regulation ("EuVECA Regulation")3; and
- the Social Entrepreneurship Regulation ("EuSEF Regulation")4.
1. "AIFMD" refers to Directive 2011/61/EU of 8 June 2011 on Alternative Investment Fund Managers.
2. "SIF Law" refers to the Law of 13 February 2007 on SIFs, as amended. The SIF Law is available on our website www.elvingerhoss. lu in both English and French. In addition to the AIFM Law, the following EU regulations may offer new opportunities to certain SIFs: - the Venture Capital Regulation ("EuVECA Regulation")3; and - the Social Entrepreneurship Regulation ("EuSEF Regulation")4.
3. "EuVECA Regulation" refers to Regulation (EU) 345/2013 of 17 April 2013 on European venture capital funds, as amended by Regulation 2017/1991.
4. "EuSEF Regulation" refers to Regulation (EU) 346/2013 of 17 April 2013 on European social entrepreneurship funds, as amended by Regulation 2017/1991
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