Luxembourg Takes First Steps Towards AIFMD: Amendments To The SIF Law

In the context of the implementation of the Alternative Investment Fund Managers Directive (AIFMD), a new draft bill (New Bill) amending the existing law on specialized investment funds (SIF law) has been tabled to the Luxembourg Parliament.

The New Bill aims to introduce, as of now, certain elements of AIFMD in order to anticipate its later implementation into national law.

In addition, SIFs will benefit from simplified administrative requirements which have already been introduced for Luxembourg UCIs through the law of 17 December 2010.

The main changes proposed by the New Bill can be summarized as follows:

Risk Management: SIFs will have to provide for portfolio and risk management. Conflicts of Interest Management: SIFs will need to implement effective procedures to limit conflicts of interest. Delegation of Investment Management Functions: The delegation of investment management functions of a SIF will, in principle, be reserved to...