What is an AIFM Luxembourg?
An Alternative Investment Fund Manager (AIFM) is any legal person whose regular business is managing one or more alternative investment funds (AIFs). AIFMs are governed by the Law of 12 July 2013 on alternative investment fund managers.
Does a Luxembourg SCA have legal personality?
Unlike the SCSp which does not have legal personality, the SCA and SCS have full legal capacity distinct from that of their part- ners. The SCS and SCSp can implement capital account mechanisms which are customary for common-law limited partnerships.
Is an AIFM a GP?
Allocation of the powers between the General Partner and the Host AIFM: Today in Luxembourg, most of the investment funds which are fully AIFMD compliant are established as an unregulated limited partnership managed by a GP which in turn needs to appoint a full scope AIFM (“Alternative Investment Fund Manager”).
What is a full scope AIFM?
full-scope UK AIFM means a UK AIFM which has a Part 4A permission to carry on the regulated activity of managing an AIF and is not a small authorised UK AIFM; Sample 1.
Who falls under AIFMD?
The Alternative Investment Fund Managers Directive (AIFMD) is a regulatory framework that applies to EU-registered hedge funds, private equity funds, and real estate investment funds.
Who can invest in a Raif?
The shares, units or partnership interests of a RAIF may only be offered to “well-informed investors” as defined in the SIF Law,5 i.e. any institutional investor, professional investor or other investor who has stated in writing that it adheres to the status of a `well-informed´ investor and who invests a minimum of …
Is Raif regulated?
The RAIF is regulated under the AIFMD2 and benefits from the corresponding EU passport but is not supervised by the Commission de Surveillance du Secteur Financier (“CSSF”), making it an attractive vehicle from a time-to-market perspective.
Is a Luxembourg SCA tax transparent?
The Luxembourg SCA, being a corporate partnership limited by shares, is an exception to this general rule since it is fiscally opaque (see Luxembourg). A private equity fund will generally seek to use a legal form that is tax efficient, marketable and familiar to investors in its target jurisdictions.
Is an SCSp a Raif?
A risk capital RAIF which takes the form of a partnership (the SCS or SCSp) will be deemed to be transparent for corporate income tax and net wealth tax purposes. In addition, it is deemed not to conduct a business and therefore is not liable to municipal business tax.
What is the remuneration policy in AIFMD?
AIFMD contains an annex setting out the detailed principles to be adhered to when establishing and applying remuneration policies for staff whose professional activities have a material impact on the risk profiles of the AIFM and/or the AIF they manage. Click here for a link to the remuneration rules set out in Annex II of AIFMD.
What are the remuneration requirements for alternative investment fund managers (AIFMs)?
(“AIFMD”), requires alternative investment fund managers (“AIFMs”) to adopt remuneration policies and practices that are “consistent with and promote sound and effective risk management and do not encourage risk-taking” in relation to certain categories of staff. Set out below is a summary of the remuneration requirements.
What are the principles of AIFMD?
AIFMD lays down principles for firms to ensure that their remuneration policies and practices “are consistent with and promote sound and effective risk management and do not encourage risk-taking which is inconsistent with the risk profiles, rules or instruments of incorporation of the AIFs they manage.”
Do the AIFMD guidelines have any effect in EU member states?
The Guidelines do not have direct effect in EU Member States. However, Member States were required to implement AIFMD in accordance with the final Guidelines, and so firms should also refer to the relevant Member State’s own rules/ guidance on AIFMD remuneration. In Luxembourg, the Guidelines have been directly transposed.