A Luxembourg SIF may be structured as:
- a common contractual fund (Fonds Commun de Placement – FCP)
- an investment company with variable capital (Société d’Investissement à Capital Variable– SICAV) or fixed capital (Société d’Investissement à Capital Fixe– SICAF).
A SICAV/SICAF can choose one of the following legal forms :
- SA – société anonyme (Public Limited Company);
- Sàrl – société à responsabilité limitée (Private Limited Company);
- SCA – société en commandite par actions (Partnership Limited by Shares);
- SCoSa – société coopérative organisée sous forme de société anonyme (Cooperative in the Form of a Public Limited Company).
A SIF may be set up as an umbrella structure with multiple compartments. A SIF Law also allows the creation of specialised investment funds under a contractual arrangement, i.e., co-ownership (fonds commun de placement – FCP).
The minimum capitalisation amounts to 1,250,000 EUR (including a share premium, if any) to be reached within twelve months after approval by the CSSF.
Protection of Investors
Protection of investors is secured by following various steps :
- Only informed investors are able to subscribe shares of a SIF. Individuals that would like to invest a minimum of 125,000 EUR have to be sponsored by a bank or a finance officer (an individual should receive a passport to invest into a SIF).
- Audit has to be undertaken by an external auditor.
- The principle of risk-spreading applies. No quantitative, qualitative, geographical or other type of investment restrictions does.Net assets may not be less than 1,250,000 EUR (to be reached within twelve months).