As previously described, an undertaking for collective investment in transferable securities (“UCITS”) can take the form of either:
a common contractual fund (fonds commun de placement - “FCP”); or
an investment company with variable capital (société d’investissement à capital variable - “SICAV”) or fixed capital (société d’investissement à capital fixe - “SICAF”).
An FCP must be managed by a management company. The management company shall draw up the management regulations for the common funds.
The SICAV/SICAF may be self-managed or have a management company. If the SICAV/SICAF is self-managed, its board of directors or the general partner is entrusted with the functions usually devoted to a management company (risk management, portfolio management etc.). A self-managed SICAV/SICAF can only manage assets of its own portfolio.
References: Article 13(1) of the amended law of 17 December 2010 relating to undertakings for collective investment; How to set up a UCITS Fund, Luxembourg for Finance, January 2019; Which Legal Forms May Take a UCITS fund? October 23, 2020, Bertrand Mariaux.
*Podcast #309:
*YouTube Video 298|:
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)