What Is the Legal Framework for a SIF? - #280-269*

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

Editor: Hannah Seulgee Jung 

*Podcast #280:

What Is the Legal Framework for a SIF? #280-269* *Article #280-269 *YouTube Video 269| . . . . . . . .

*YouTube Video 269|: 

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)

Eligible Investors (SIF) - #279-268*

As previously discussed the specialised investment fund (the “SIF”) is reserved to well-informed investors. Well-informed investors are:

• institutional investors;

• professional investors; or 

• any other investors who meets the following conditions:

• she/he has confirmed in writing that he adheres to the status of a well-informed investor; and

• she/he invests a minimum of EUR 125,000 in the SIF; or

• she/he has been assessed by: 

• a credit institution;

• an investment firm;

• a management company;

certifying her/his 

• expertise, 

• experience; and 

• knowledge,

in adequately appraising an investment in the SIF.

The last category is frequently used by high-net-worth individuals (HNWI).

These conditions are not applicable to directors or other persons who intervene in the management of the SIF.

References: Article 2(1) & (2) of the amended law on SIF of 13 February 2007; Specialised Investment Fund (SIF), September 25, 2020, Bertrand Mariaux.

Contributor: Cédric Buisine, Avocat

*Podcast #279:

Eligible Investors (SIF) #279-268* *Article #279-268 *Podcast #279 *YouTube Video 268| . . . . . . . .

*YouTube Video 268|: 

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)

Specialised Investment Fund (SIF) - #278-267*

A specialised investment fund (“SIF”) is a multipurpose vehicle which can be used for all asset classes. It provides flexibility and fiscal efficiency. It usually qualifies as an alternative investment fund (“AIF”). The SIF is reserved to one or several well-informed investors (as defined by the law). SIFs that have appointed an EU alternative investment fund manager (“AIFM”) can market their securities or partnership interests across the European Union.

References: Article 1(1) of the amended SIF law of 13 February 2017; Which Structures Are Mainly Used in Impact Finance?, August 21, 2020, Bertrand Mariaux.

Contributor: Cédric Buisine, Avocat

*Podcast #278:

Specialised Investment Fund (SIF) #278-267* *Article #278-267 *YouTube Video 267| . . . . . . . . #ImpactFinance , #ImpactInvesting , #attorney , #avocat , #ServeAndThrive , #ThriveAndAccomplishYourMission , #MariauxAvocats , #SocialImpact , #impact , #ImpactSocial , #SocEnt , #MissionDriven , #MissionDrivenVenture , #EU , #DFI , #SocialVenture , #AssetManagement , #sustainability , #AlternativeInvestment , #SustainableFinance , #ResponsibleInvestment , #AIF , #AIFM , #AIFMD , #ResponsibleFinance , #domiciliation , #SIF Any content published on MariauxAvocats.com does not constitute legal advice.

*YouTube Video 267|: 

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)