While the UCITS Directive is based on the supervision and regulation of funds (product supervision), the AIFM Directive (AIFMD) aims at ensuring adequate supervision and regulation of fund managers (management supervision). The AIFMD marketing passport is available to all funds which are managed by an authorised AIFM, irrespective of whether the funds are directly regulated or not.
Luxembourg has developed a wide range of investment vehicles that can be used to set up an AIF:
The table below compares the most widely used Luxembourg investment vehicles for AIFs.
| UCI Part II | SIF | SICAR | RAIF | |
|---|---|---|---|---|
| Eligible investors | All types of investors. | Well‑informed investors. | Well‑informed investors. | Well‑informed investors. |
| Eligible assets | All types of assets. | All types of assets. | Risk capital assets as defined in the SICAR Law. | All types of assets. |
| Risk diversification | Stricter diversification requirements. | Lighter diversification requirements. | No diversification requirements. | Lighter diversification requirements. |
| AIF status | Always qualifying as AIF. | Qualifying as AIF unless an exemption applies. | Qualifying as AIF unless an exemption applies. | Always qualifying as AIF. |
| AIFM | Registered or authorized AIFM required. | Registered or authorized AIFM required for SIFs qualifying as AIFs. | Registered or authorized AIFM required for SICARs qualifying as AIFs. | Authorized AIFM always required. |
| Authorisation and supervision | Authorised and supervised by the CSSF. | Authorised and supervised by the CSSF. | Authorised and supervised by the CSSF. | Not subject to CSSF's authorisation. Indirectly supervised through its AIFM. |
| Disclosure requirements | Prospectus; annual and semi‑annual report; PRIIP KID for retail investors. | Prospectus or offering document; annual report; PRIIP KID for retail investors. | Prospectus; annual report; PRIIP KID for retail investors. | Prospectus or offering document; annual report; PRIIP KID for retail investors. |
We can help you to meet all regulatory requirements with efficient, flexible and cost‑effective solutions. We can assist you to draft prospectus or offering documents, to prepare annual and semi‑annual reports, as well as to compile, update and disseminate PRIIP KIDs for retail investors.