A specialised investment fund (“SIF”) is primarily governed by the amended law on SIF of 13 February 2007 (the “SIF Law”). The SIF Law was amended by the Law of 12 July 2013 on alternative investment fund managers (the “AIFM Law”). There are two parts in the SIF Law:
Part I refers to the general provisions applicable to SIFs; and
Part II concerns the specific provisions applicable to SIFs managed by an alternative investment fund manager (“AIFM”). Most SIFs qualify as alternative investment funds (“AIFs”) because of the broad definition of an AIF.
Another piece of legislation must be applied especially if SIFs invest in short-term assets and have distinct objectives offering returns in accordance with money market rates or where SIFs intend to preserve the value of the investment. A SIF must then comply with the EU Regulation 2017/1131 on money market funds.
SIFs shall also comply with applicable national regulation(s), as well as EU regulations (on anti-money laundering, the amended markets in financial instruments Directive (The “MIFID II”), market abuse, derivatives, securities and general corporate law).
References: Articles 1(39) and 4(1) of the AIFM Law; What Is an Alternative Investment Fund? September 15, 2020, Bertrand Mariaux; Determination of the AIFM, August 27, 2020, Bertrand Mariaux.
Contributor: Cédric Buisine, Avocat
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Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)
Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)