Understanding Investing 简体中文网页 Members section

Other features at a glance

 

Eligible investorsThere 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.
AuthorisationA 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 requirementEUR 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 restrictionsA 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 administrationThe 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 LuxembourgA 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 managementA risk-management process must be employed which enables the UCITS to monitor and measure at any time all the material risk of its positions.
Remuneration

UCITS management companies must put in place remuneration policies and practices for senior management and persons whose professional activities

have 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
  • Prospectus
  • Key Investor Information Document (KIID)
  • FCP: management regulations
  • SICAV/SICAF: articles of association
  • Agreements with service providers
  • Annual audited financial statements
  • Semi-annual non-audited financial statements
  • Long Form Report describing the organisation of the UCITS
  • Description of the risk management procedure

 

Updated on 18/10/16  
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