|Eligible investors||There is no restriction on the type of investors authorised to invest in a UCITS. The latter are sold to the public but also to corporations and institutions.|
|Authorisation||A UCITS must be authorised by the CSSF before it can start its activities. It must provide a series of documents and specific information to the Luxembourg supervisory authority CSSF.|
|Capital requirement||EUR 1,250,000 must be reached within six months of authorisation. The minimum capital of a self-managed SICAV/SICAF may not be less than EUR 300,000 at the date of authorisation.|
|Eligible investments and investment restrictions||A UCITS must invest in “eligible assets” such as transferable securities, money market instruments or bank deposits. The Law of 17 December 2010 provides the full list of eligible investments, and defines detailed risk diversification requirements.|
|Central administration||The central administration must be established in the EU, i.e. a Luxembourg UCITS can be managed by a Luxembourg management company or by a management company based in another EU Member State.|
|Compulsory service providers in Luxembourg||A UCITS set up under Luxembourg law must appoint external auditors and a Luxembourg depositary, which is among other things responsible for the safekeeping of the fund’s assets.|
|Risk management||A risk-management process must be employed which enables the UCITS to monitor and measure at any time all the material risk of its positions.|
UCITS management companies must put in place remuneration policies and practices for senior management and persons whose professional activitieshave a material impact on the risk profile of the management company or the UCITS.
|Net asset value (NAV)||The fund’s NAV must be calculated at least twice a month.|
|Issue of units/shares|
FCP: Units must be issued at the NAV price (increased by possible subscription fees).
SICAV: Shares must be issued at the NAV price (increased by possible subscription fees).SICAF: The issue of shares requires an amendment of the articles of association. The share price will be determined based on the principles laid down in the articles of association.
|Documents to be established according to laws and regulations|