Law of 20 December 2002 concerning the organizations of collective investment and modifying the Law of 12 February 1979 concerning the taxation on the added values
(Loi du 20 décembre 2002 concernant les organismes de placement collectif et modifiant la loi modifiée du 12 février 1979 concernant la taxe sur la valeur ajoutée)
[English Translation of the Content and Articles 1, 4, 16, 20, 23, 69, 95 and 109]
For the purpose of this law, the following terms shall be understood as follows:
4) “the CSSF”: the Financial Sector Supervising Commission [la Commission de Surveillance du Secteur Financier]
21) “OPC”: organization of collective investment [organisme de placement collectif]
22) “OPCVM”: organization of collective investment in movable securities [organisme de placement collectif en valeurs mobilieres] subject to the Directive 85/611/CEE.
24) “SICAV”: investment company with variable capital [societe d’investiessement a capital variable]
Chapter 1 General provisions and field of application
An OPCVM shall be considered to be situated in Luxembourg if the statutory principal office of the fund management company or that of the investment company is located in Luxembourg. The central administration must be situated in Luxembourg.
Chapter 2 Mutual funds [fonds communs de placement] in movable securities
Unless there is any stipulation contrary under the rule of management, the net assets of the mutual funds may be distributed within the limit of Article 23 of this law.
The management company and the custodian must, in the exercise of their respective functions, act in an independent manner and exclusively for the interests of the participants.
The net asset of the mutual funds may not be inferior to 1,250,000 euros.
This minimum must be attained within the period of 6 months from the approval of the mutual funds.
A regulation of Grand Duchy may determine this minimum a higher amount which shall not excel 2,500,000 euros.
Chapter 3 SICAV in movable securities
Chapter 4 Other investment companies in movable securities
Chapter 5 Policy of investment of an OPCVM
Chapter 6 OPCVM located in Luxembourg offering their shares in any other countries of European Union
Chapter 7 OPCVM located in any other countries of European Union offering their shares in Luxembourg
Chapter 8 Field of application
Chapter 9 Mutual Funds
Chapter 10 SICAV
The SICAV in the meaning of this part shall be the companies which adopted a form of joint stock company under the law of Luxembourg,
- whose only purpose is to invest their funds in securities for the purpose of dissevering the risks of investment and profit their investors from the results of their asset management, and
- whose actions are oriented for investment in the public by public or private offers, and
- whose charters stipulate that the amount of capital shall be always equal to the value of net asset of the company.
Chapter 11 OPC which do not have legal forms of mutual funds or SICAV
Chapter 12 General provisions and field of application
Chapter 13 Management companies assuring the management of OPCVM relevant of the Directive 5/611/CEE
Chapter 14 Other Luxembourg management companies of OPC
Chapter 15 Approval
The OPC which obtain their registration in the official register of OPC shall be exempt from implementation of the formalities intended for visa of the prospectus related to the public offers of movable securities.
Chapter 16 Supervising body
Chapter 17 Obligations concerning the information of the participants
(1) The investment company and the management company shall, for each of the funds it manages, have to publish:
- a simplified prospectus,
- a complete prospectus,
- an annual report per fiscal year, and
- a semi-annual report covering the first six months of the fiscal year.
Chapter 18 Penalties
Chapter 19 Fiscal provisions
Chapter 20 Special provisions regarding the legal form
Chapter 21 Transitory provisions and repeals
Annex 1 Scheme A
*This is just an unofficial translation of a part of the law. For an original, complete text, visit the government’s site.
àBooks on Luxembourg [Business Law, Investment, etc.]