Luxembourg is the primary investment area put on the planet after the United States with strong remaining as a worldwide asset center, and considers a wide scope of investment institutions, covering the sum of the asset systems on the global level after the US.
The Reserved Alternative Investment Fund (RAIF) is a fund for putting in that can place assets into diverse forms of investment.
These are described as professional investors who have confirmed proofs in form of a printed copy that they adhere to the “well-qualified” monetary expert status. Besides, they need to either invest no less than125K euros in the RAIF or have been evaluated by a credit company, venture organization or the board association that ensures the financial specialist’s expertise, experience and data in sufficiently getting the measure of an interest in the RAIF.
RAIFs are covered by the Luxembourg Law of 23 July 2016 (the RAIF Law). The Luxembourg law of 12 July 2013 on Alternative Investment Fund Managers (AIFM Law) is also a regulator.
RAIF is placing resources into transient assets and, offering returns as per cash market rates or protecting the assessment of the asset, ought to agree moreover to the essentials of Regulation (EU) 2017/1131 on money market funds. There are some of additional guidelines (for instance concerning AML, MiFID, subordinates, securities financing trades, investor’s rights).
The RAIF may be set up as a following commercial structure:
Luxembourg RAIF need not the CSSF affirmation for being administered by a Management Company agreed by CSSF, as per the Directive AIFM 2011/61/UE. A legitimate authority does not have to approve Constitutional document of the fund. It is sufficient to ensure that the AIFM attests the fund’s creation, and that this information is disseminated in the authority periodical, the Mémorial.
The net RAIF funds may be not actually 1 250 000 euros. 5% of the capital ought to be paid at getting a membership.
A RAIF should involve a PRIIP Key Information Document (KID) if retail investors are able to make investments, and a yearly report. There is no obligation to send a semi-yearly reporting.
RAIFs are expected to be accept by AIFM, they cannot be regulated inside. The AIFM can be set up in EU Member State or in a third country. If the RAIF is regulated by an organization association, it will in general be designated as AIFM.
Luxembourg RAIF has all advantages of general European area, allowing all associations put assets into the fund and to be advanced in all EU-countries.
A UCITS overseeing association may apply for approval as AIFM to regulate both UCITS and AIFs.
The overseeing association of a FCP should draw up the organization rules for the basic assets. Autonomous SICAV/SICAFs may simply administer monetary assets of their own portfolio and may not direct assets of third party. The central association of a RAIF ought to be in Luxembourg.
A RAIF should assign a Luxembourg depositary. The certified depositaries are Luxembourg credit foundations, yet furthermore Luxembourg speculation organizations fulfilling certain essentials set by the Law of 5 April 1993 concerning the financial field, as reexamined. An affirmed independent monitor with appropriate master experience ought to investigate the yearly report.
Different other services representatives for a RAIF consolidate lawyers, portfolio administrators, heads and trained professionals, domiciliation subject matter experts, wholesalers and paying subject matter experts.