We briefly discussed safekeeping for an undertaking for collective investment in transferable securities (“UCITS”). Let’s now continue to the other important administrative and professional services aspects to keep in mind when setting up a UCITS.
First, the so-called: “Fit and Proper Test” (by the CSSF) takes place. Indeed, the conducting officers (dirigeants) of the depositary and of the UCITS must be of sufficiently good repute and have sufficient experience (Articles 17(5) & 33(4) of the UCI Law, as defined below). Likewise, the directors (or the directors of the management company) of the UCITS must be of sufficiently good repute and have sufficient experience for performing their functions.
In addition, UCITS must have the accounting information provided in their annual report audited by an approved statutory auditor (réviseur d’entreprises agréé).
Service providers include lawyers, domiciliation agents, management companies (portfolio and risk managers...), investment advisers, distributors and paying agents.
Finally, a UCITS shall be deemed to be established in Luxembourg if the registered office of the management company of the common fund or the registered office of the investment company is established in Luxembourg.
References: Articles 17(5), 33(4), 129(5), 145(1), 154(1), 155(1) of the amended law of 17 December 2010 relating to undertakings for collective investment (the “UCI Law”); How to Set up a UCITS Fund, Luxembourg for Finance, January 2019; Safekeeping (UCITS), November 19, 2020, Bertrand Mariaux.
*Podcast #313:
*YouTube Video 302|:
Contributor: Cédric Buisine, Avocat
Editor: Hannah Seulgee Jung
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)