ALFI Glossary

ALFI Glossary

ALFI glossary gives definitions for the main regulatory terms that are used on the ALFI website and in ALFI documents.

1915 Law

Luxembourg Law of 10 August 1915 on commercial companies, as amended

As used in:

2010 Law

Luxembourg Law of 17 December 2010 relating to undertakings for collective investment, as amended

As used in:

2013 Law

Luxembourg Law of 12 July 2013 on alternative investment fund managers, as amended

As used in:

Action Plan

Communication from the Commission to the European Parliament, the European Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions Action Plan: Financing Sustainable Growth

As used in:

AED

Administration de l’Enregistrement, des Domaines et de la TVA

As used in:

AEOI

Automatic Exchange Of Information

As used in:

AEOI Compliance Programme

Automatic Exchange Of Information Compliance Programme: the set of policies, procedures, IT systems and controls that Luxembourg financial institutions have to implement to ensure compliance with due diligence and reporting obligations under FATCA and CRS according to the Luxembourg Law of June 2020

As used in:

AIF(s)

Alternative Investment Fund(s) as defined in Article 4(1)(a) AIFMD

As used in:

AIFM Directive

Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers, see also AIFMD

As used in:

AIFM Law

Luxembourg Law of 12 July 2013 implementing the AIFMD/AIFM Directive into Luxembourg law, as amended

As used in:

AIFM(s)

Alternative Investment Fund Manager, as defined in Article 4(1)(b) of the AIFMD

As used in:

AIFMD

Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers, see also AIFM Directive

As used in:

AML

Anti-Money Laundering

As used in:

AML Law

Luxembourg Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended

As used in:

AML/CFT

Anti-Money Laundering/Combatting the Financing of Terrorism

As used in:

AML/CTF GDR

Grand-Ducal regulation of 1 February 2010 providing details on certain provisions of the amended law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended

As used in:

AML/CTF Law

Luxembourg Law of 12 November 2004 on the fight against money laundering and terrorist financing, as amended

As used in:

AML/KYC

Anti-Money Laundering/Know-Your-Customer

As used in:

Beneficial Owner

Any natural person(s) who ultimately own(s) or control(s) the legal entity or any natural person(s) on whose behalf a transaction or activity is being conducted, within the meaning of Article 1(7) of the AML/CTF Law

As used in:

Budget Law

Luxembourg Law of 19 December 2020 on the State revenue and expenditure budget for the financial year 2021 amending Article 174 paragraph 3 of the amended law of 17 December 2010 on undertakings for collective investment

As used in:

Business Relationship

Professional or commercial relationship which is connected with the professional activities of the UCI and which is expected, at the time when the contact is established, to have an element of duration

As used in:

Capital call

Written notice to limited partners requesting them to make a capital contribution to the fund vehicle (within the limits of their subscription commitment) in order to permit the fund vehicle to pay for its investments or to pay expenses

As used in:

Carried interest

Carried interest as defined in Article 4(1)(d) of the AIFMD

As used in:

CBD

Cross-Border Distribution

As used in:

CCP

Central (clearing) Counterparty

As used in:

CDD

Customer Due Diligence

As used in:

CDR

Commission Delegated Regulation

As used in:

CRS

Common Reporting Standard

As used in:

CSD

Central Securities Depository

As used in:

CSDR

Central Securities Depository Regulation

As used in:

CSSF

Commission de Surveillance du Secteur Financier, Luxembourg financial supervisory authority

As used in:

CSSF AML/CFT Market Entry Form

CSSF form on CSSF eDesk

As used in:

CSSF Regulation 12-02

CSSF Regulation No. 12-02 of 14 December 2012 on the fight against money laundering and terrorist financing, as amended

As used in:

CTF

Counter Terrorist Financing

As used in:

Customer

Natural or legal person with whom a business relationship exists or for whom an occasional transaction is carried out within the meaning of point (b) of Article 3(1) of the AML/CTF Law, including persons purporting to act on behalf of the customer. As regards UCIs, the notion of customer encompasses the notion of investor registered in the investment fund register

As used in:

DLT

Distributed Ledger Technology

As used in:

EBA

European Banking Authority

As used in:

EC

European Commission

As used in:

EIOPA

European Insurance and Occupational Pensions Authority

As used in:

ELTIF

European Long-Term Investment Fund, governed by the ELTIF Regulation

As used in:

ELTIF Regulation

Regulation (EU) 2015/760 of the European Parliament and of the Council of 29 April 2015 on European long-term investment funds

As used in:

EMT

European MiFID Template

As used in:

EPT

European PRIIPs Template

As used in:

ESAs

The three European Supervisory Authorities (ESAs): the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA)

As used in:

ESMA

European Securities and Markets Authority

As used in:

ETF

Exchange Traded Fund

As used in:

EU

European Union

As used in:

EuSEF

European Social Entrepreneurship Funds, as governed by the EuSEF Regulation

As used in:

EuSEF Regulation

Regulation (EU) No 346/2013 of the European Parliament and of the Council of 17 April 2013 on European Social Entrepreneurship Funds

EuVECA funds/managers

European Venture Capital funds or managers, as governed by the EuVECA Regulation

As used in:

EuVeca Regulation

Regulation (EU) No 345/2013 of the European Parliament and of the Council of 17 April 2013 on European venture capital funds

As used in:

FATCA

US Foreign Account Tax Compliance Act

As used in:

FATF

Financial Action Task Force on Anti-Money Laundering and Counter Terrorist Financing

As used in:

FCP

Fonds Commun de Placement, an undivided co-ownership of assets or proprietorship managed by a management company

As used in:

FIU

The Luxembourg Financial Intelligence Unit (the Cellule de Renseignement Financier)

As used in:

GDPR

General Data Protection Regulation, Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data

As used in:

GoAML

The online portal which is to be used to make declarations of suspicious activities or transactions in Luxembourg. This system allows the reporting in a standardised format to the FIU. Professionals (including UCIs and IFMs) must report without delay to the FIU when they are aware, suspect or have reasonable grounds to suspect that money laundering, an associated predicate offence or terrorist financing is happening or has been committed or attempted, regardless of the amount involved

As used in:

GP(s)

General Partner(s)

As used in:

HoldCo

Holding Company

As used in:

IFM(s)

Investment Fund Manager(s), as governed by the CSSF Circular 18/698 on the authorisation and organisation of investment fund managers incorporated under Luxembourg law

As used in:

IFRS

International Financial Reporting Standards

As used in:

IM

Investment Manager

As used in:

IML

Institut Monétaire Luxembourgeois, forerunner of the CSSF

As used in:

Internally-managed

AIFs should be deemed internally-managed when the management functions are performed by the governing body or any other internal resource of the AIF. Where the legal form of the AIF permits internal management and where the AIF’s governing body chooses not to appoint an external AIFM, the AIF is also AIFM and should therefore comply with all requirements for AIFMs under the AIFMD and be authorised as such. For further details on AIFs structured as limited partnerships, please refer to the CSSF’s FAQs concerning the Luxembourg AIFM Law

As used in:

IPEV

International Private Equity and Venture Capital Valuation (Guidelines)

As used in:

ISD

Intended Settlement Date

As used in:

ISIN

International Securities Identification Number

As used in:

KPI

Key Performance Indicator

As used in:

KYC

Know Your Client/Customer

As used in:

Law of June 2020

Luxembourg Law of 18 June 2020 amending the laws on the Foreign Account Tax Compliance Act and the Common Reporting Standard

As used in:

LBR

Luxembourg Business Registers

As used in:

LFIs

Luxembourg Financial Institutions

As used in:

LMFP

Late Matching Fail Penalty

As used in:

LP(S)

Limited Partner(s)(ship)

As used in:

LPA

Limited Partnership Agreement

As used in:

LPEA

Luxembourg Private Equity and Venture Capital Association

As used in:

LRFI

Luxembourg Reporting Financial Institution

As used in:

LuxGAAP

Luxembourg Generally Accepted Accounting Principles, most frequently used accounting framework in Luxembourg for PE vehicles

As used in:

ManCo

Management Company

As used in:

MiFID

Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments

As used in:

MiFID II Regulation

Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive

As used in:

ML/TF

Money Laundering/Terrorist Financing

As used in:

NAV

Net Asset Value

As used in:

NCA

National Competent Authorities

As used in:

NRFI

Non-Reporting Financial Institution

As used in:

OGC

Ongoing Charges

As used in:

OJ

Official Journal of the European Union

As used in:

Outsourcing

Delegation (of FATCA and CRS due diligence and reporting obligations by Luxembourg investment funds or entities) to a service provider

As used in:

Part II fund

A fund set up under Part II of the Luxembourg Law of 17 December 2010 on undertakings for collective investment

As used in:

PF

Proliferation Financing – act of providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, transshipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons of mass destruction

As used in:

PFS

Professional of the Financial Sector (Luxembourg)

Politically Exposed Person (PEP)

Natural person who is or has been entrusted with a prominent public function and including family members or persons known to be close associates of such person. Reference is made to the definitions provided in Articles 1(9) to (12) of the AML/CTF Law

As used in:

PRIIP(s)

Packaged Retail and Insurance-based Investment Products, as governed by the PRIIPs Regulation

As used in:

PRIIPs KID

Key Information Document for PRIIPs

As used in:

PRIIPs Regulation

Regulation (EU) No 1286/2014 of European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs)

AML/CTF Professional

Any person regulated in Luxembourg for AML/CTF purposes as per Article 2 of the AML/CTF Law

As used in:

Professional investor

An investor meeting the criteria laid down in Annex II of Directive of 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments

As used in:

PSF

Professionnel du Secteur Financier, a professional of the financial services sector; each PSF is subject to the prior authorisation and ongoing prudential supervision by the CSSF

As used in:

Q&A

Question(s) and Answer(s)

As used in:

Quarterly Sustainable Portion

The share of net assets invested in sustainable economic activities as evaluated at the end of each quarter

As used in:

RACI matrix

Responsibility assignment matrix (RACI: responsible – accountable – consulted – informed)

As used in:

RAIF

Reserved Alternative Investment Fund, a collective investment scheme governed by the Luxembourg Law of 23 July 2016 on reserved alternative investment funds, as amended

As used in:

RAIF Law

Luxembourg Law of 23 July 2016 on RAIF

RC

Responsable du contrôle du respect des obligations, the compliance officer at appropriate hierarchical level, for the purpose of Article 4(1) para. (a) of the AML/CTF Law

As used in:

RCS

Registre de commerce et des sociétés, the Luxembourg trade and company register

As used in:

AML/CTF Regulations and Standards

The AML/CTF laws, regulations, circulars and guidelines applicable in Luxembourg, as further detailed in Section II below

As used in:

Retail investor

An investor who is not a professional investor as defined in Annex II of Directive of 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments

As used in:

RR

Responsable du Respect des obligations, the person responsible for the fight against ML/TF at the management level for the purpose of Article 4(1), fourth subparagraph of the AML/CTF Law

As used in:

RTS

Regulatory Technical Standards

As used in:

SA

Société Anonyme, public limited liability company

As used in:

SAR

Suspicious Activity Report

As used in:

SARL

Société à Responsabilité Limitée, private limited liability company

As used in:

SCA

Société en Commandite par Actions, corporate partnership limited by shares

As used in:

SCS/CLP

Société en Commandite Simple, common limited partnership with legal personality

As used in:

SCSp

Société en Commandite Spéciale, special limited partnership without legal personality

As used in:

SDR

Settlement Discipline Regime

As used in:

SEFP

Settlement Fail Penalty

As used in:

SFDR

Sustainable Finance Disclosure Regulation, Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector

As used in:

SICAR

Société d’Investissement en Capital à Risque, investment company investing in risk capital only

As used in:

SICAR Law

Luxembourg Law of 15 June 2004 on SICAR

SICAV

Société d’investissement en capital variable, investment company with variable capital

As used in:

SIF

Specialised Investment Fund, a collective investment scheme governed by the law of 13 February 2007 on specialised investment funds, as amended

As used in:

SIF Law

Luxembourg Law of 13 February 2007 on SIF

SME

Small and Medium-sized Enterprises

As used in:

SOPARFI

Société de Participation Financière

As used in:

SSA Bonds

Include supranational, sovereign, sub-sovereign, governmental, quasi-governmental and agency bonds

As used in:

SSIs

Standard Settlement Instructions

As used in:

STR

Suspicious Transaction Report

As used in:

Subscription tax

A Luxembourg tax assessed on the net asset value and payable by certain collective investment schemes only (also: Taxe d’Abonnement)

As used in:

Taxonomy Regulation

Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 and in particular article 3 of the Regulation

As used in:

TER

Total Expense Ratio

As used in:

TFS

Targeted Financial Sanctions – covering both asset freezing and prohibitions to prevent funds or other assets from being made available, directly or indirectly, for the benefit of designated states, persons, entities and groups

As used in:

AML/CTF Third-Party Introducer

A third-party introducer within the meaning of Article 3-3(1) of the AML/CTF Law

As used in:

TPSP

Third-Party Service Provider

As used in:

UCI Law

Luxembourg law of 17 December 2010 relating to undertakings for collective investment

As used in:

UCI(s)

Undertaking(s) for collective investment, collective investment schemes governed by the UCI law, as amended

As used in:

UCITS

Undertaking for Collective Investments in Transferable Securities, collective investment schemes organised in accordance with Directive 2009/65/EC of the European Parliament and Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS)

As used in:

UCITS Directive

Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to UCITS, as amended by Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014 as regards depositary functions, remuneration policies and sanctions

As used in:

UCITS KIID

Key Investor Information Document for UCITS

As used in:

Undertaking for Collective Investment (UCI)

Undertaking for collective investment, investment company or investment fund set up under the relevant applicable Luxembourg law and/or established in Luxembourg

As used in:

VAT

Value Added Tax

As used in:

Well-informed investor

Well-informed investor, as defined by the SICAR Law, SIF Law and RAIF Law respectively

As used in: