In 2013, at the time the AIFM Directive was introduced, Luxembourg's lawmakers took the opportunity to revamp the two existing limited partnerships with legal personality – the partnership limited by shares (SCA or société en commandite par action) and the common limited partnership (SCS or société en commandite simple).
Legal & Regulation
Unless you've been on Mars for the last 12 months, you will be only too aware of the chaos that has been uncorked following the UK's decision, in June 2016, to leave the European Union.
By Jean-Florent Richard (pictured) & Pilar de Terry – Next year sees the introduction of two major pieces of regulation both of which will have implications for how asset managers distribute their investment funds across Europe. Simply put, MiFID II will apply to investment firms manufacturing and/or distributing financial instruments while the PRIIPS regulation applies to all unit-linked funds, structured products and retail investment products.
Luxembourg will always be a very heavily regulated jurisdiction. When the Alternative Investment Fund Managers Directive was introduced in 2011, the Grand Duchy was well prepared in advance of this new post-financial crisis environment of global regulation.
Rather than taking a short-term reactive approach to coping with regulatory change, and the inevitable reporting/data management task that comes with it, asset managers would be best advised to step back and think more long-term.
Although perceived as a very safe and conservative country, Luxembourg has embraced innovation in a number of ways that continue to set it apart from many of its competitors.
Linda Gibson, Director of Regulatory Change and Compliance Risk, BNY Mellon’s Pershing on teh challenge and opportunities of MiFID II…
Proposals for a three-year tax break to attract more HNW relocations have been welcomed by property lawyer, Advocate Martyn Baudains.
With the implementation of AIFMD and UCITS V, the cost of launching EU funds has undoubtedly increased. Managers have to weigh up these costs versus the benefits of reaching a wider audience of European investors, compared to offshore funds. For those based in the UK, an added complication is Brexit.
Guernsey’s Private Investment Fund regime was launched in November last year and has so far proved to be a popular route to launch a private fund. As the regime approaches its first anniversary, Annette Alexander (pictured) of Carey Olsen, on behalf of the Guernsey Investment Fund Association, explains the PIF’s key features and the reasons behind its popularity.