Luxembourg parliament adopt a new funds law

On July 11th, 2023, the Luxembourg parliament adopted the bill of law n°8183 (the “Bill”) which intends to modernise the Luxembourg toolbox by amending the SICAR, SIF, RAIF, UCI and AIF Law.

The new law will increase the attractiveness and competitiveness of the Luxembourg financial center by offering more structuring options for private funds in the context of the retailisation of the private assets, including new corporate options and the possibility to issue shares according to the funds’ rules (and no longer only at NAV) for Part II UCIs making them an even more vehicle of choice for ELTIFs. It also intends to modernise the subscription tax regime and to exempt ELTIF and PEPP from it, in addition to other tax amendments.

The new law will also enact certain CSSF practices related, but not only, to the change and withdrawal of depositary banks and will align certain provisions of the SICAR, SIF and RAIF Laws, among which a new common definition of “well informed investor” and the reduction of the investment threshold for those investors to EUR 100,000.

More details on the content of the Bill can be found in our previous Newsflash on this topic.

Considering that the Conseil d’Etat and the Chambre de Commerce had a positive advice on the Bill and only issue handful comments on it, one can expect that the Conseil d’Etat will grant dispense on a second vote on the Bill. In that case, the new law could be promulgated shortly and will enter into force four day after its publication in the Luxemburg Memorial, which we can still expect to take place this summer.

Do not hesitate to reach us if you have any queries on how this new law may impact you or if you wish to discuss the new options that will arise from the new law.