Luxembourg Collective Investment in Transferable Securities (UCITS)
The Commission de Surveillance du Secteur Financier (CSSF) is a public institution which supervises the professionals and products of the Luxembourg financial sector. It supervises, regulates, authorises, informs, and, where appropriate, carries out on-site inspections and issues sanctions.
About Luxembourg Collective Investment in Transferable Securities (UCITS)
An Undertaking for Collective Investment in Transferable Securities (UCITS) is an investment fund that meets the criteria laid down by EU Directives to be eligible for sale in EU Member States. The UCITS may be set up as a single fund or as an umbrella fund with multiple compartments. The constitutional documents must expressly provide for that possibility and the prospectus must describe the investment policy of each compartment.
Luxembourg has successfully positioned itself as the global leader for cross-border distribution of investment funds, with the result that today more than 65% of UCITS funds distributed internationally are based in Luxembourg.
Luxembourg Collective Investment in Transferable Securities (UCITS) Legal Requirements
| Requirements | Description |
| Luxembourg Law of 13 February 2007 UCITS Part I Law 17.12.2010 |
| Commission de Surveillance du Secteur Financier (CSSF) |
| Common Fund (FCP) Investment Company-variable capital (SICAV) Investment Company-fixed capital (SICAF) Limited Partnership |
| |
| EUR 1,250,000 |
| None |
| |
| 2 |
| Yes |
| No |
| |
| |
| Yes |
| No |
| Licensed Financial institution Licensed Trustee services provider Any other person as the authority may approve |
| |
| Yes |
| No |
| Yes |
| UCITS can be managed by a Luxembourg management company or by a management company based in another EU Member State. |
| |
| Yes |
| Yes |
| A Luxembourg UCITS must appoint a Luxembourg depositary which is among other things responsible for the safekeeping of the fund’s assets. |
| |
| Yes |
| Yes |
| Luxembourg statutory auditor with appropriate professional experience |
| |
| None |
| None |
| None |
| No |
| Yes |
| Yes |
| 3-6 months |
Ongoing Obligations
| Requirements | Description |
|---|---|
|
Monthly obligations |
Office Required |
|
Quarterly obligations |
None |
|
Annual obligations |
Submit annual audited accounts to CSSF for the financial year end |
|
Other obligations |
Notify CSSF of any of the following changes: Change in the registered office address Change of its agent in Luxembourg Change in name or address of-
Appointment, resignation or removal of a Director or officer |
| Requirements | Description |
|---|---|
|
Business Tax |
Investment funds created under the AIF Law pay an annual subscription tax of 0.01% of their net asset value on the last day of every calendar quarter. |
|
Withholding Tax |
No withholding tax upon distribution to investors unless EU Savings Directive applies. |
|
Net Worth Tax |
Not subject to net worth tax |
|
Subscription Tax |
Certain money market and pension funds or AIFs investing in other funds which are already subject to subscription tax are exempt from subscription tax. |
|
Capital Duty |
No capital duty applies on incorporation of the corporate form (except a registration duty of €75) |
|
Value Added Tax (VAT) |
No VAT on Management services – except mere technical services – provided to a AIF are exempt from Luxembourg VAT |
|
Stamp duty Act |
Mutual funds are exempt from payment of stamp duty
|
Benefits of a Luxembourg Collective Investment in Transferable Securities (UCITS):
- Internationally recognised investment fund industry;
- Reputable regulatory environment owing to its accessibility, knowledge and responsiveness of the regulator;
- Political, economic and social environment’s stability as well as stable legal environment;
- Favourable tax environment;
- Attractive jurisdiction for institutional investors; and
- Luxembourg investment funds benefit from a product passport, enabling them to be marketed to investors in the European Union (EU) and European Economic Area (EEA).