Thursday, 11 July, 2013

AIFMD implemented in Luxembourg.

With the law of 12 July 2013 on alternative investment fund managers (the 'AIFM Law'), Luxembourg has transposed the European Directive 2011/61/EU on alternative investment fund managers ('AIFMD') into Luxembourg law.
The AIFM Law implements new rules for the authorisation, operation and transparency of alternative investment fund managers managing and/or distributing alternative investment funds within the European Union.

The AIFM Law mainly impacts specialised investment funds, undertakings for collective investment subject to Part II of the Law of 17 December 2010 on undertakings for collective investment and investment companies in risk capital.

While transposing the AIFMD into Luxembourg law, the Luxembourg legislator has also taken the opportunity to:

  • revisit the existing regimes applicable to the common limited partnerships (sociétés en commandite simple) and corporate partnerships limited by shares (sociétés en commandite par actions) and create a new regime for special limited partnerships (sociétés en commandite spéciale);
  • introduce a new regime for depositaries of assets other than financial instruments;
  • clarify the tax treatment of carried interest in Luxembourg.

The AIFM Law entered into force in Luxembourg on 15 July 2013. However, existing alternative investment funds and alternative investment fund managers falling in the scope of the AIFM Law benefit from a grandfathering period until 22 July 2014, the date on which they will have to comply with the AIFM Law.