On 15 October 2008, the Luxembourg Parliament amended the existing SICAR law of 15 June 2004 with the aim to make the SICAR regime more attractive to private equity and venture capital investors. The main amendments that have been voted are briefly set out hereunder: Umbrella structure The new SICAR law has introduced…
Legal News
2 October 2008
New draft bill – Exemption of withholding tax on dividends paid to treaty countries
On 1 October 2008, a draft bill (n°5924) introducing new favourable tax rules was submitted to the Luxembourg Parliament. We set out hereunder a brief overview of the main changes that are proposed and that relate to companies: The exemption of withholding tax on dividends paid to corporate shareholders located in countries…
1 October 2008
CSSF – precisions on the prohibition of uncovered short selling
On 29 September 2008 the CSSF issued a press release providing precisions on the prohibition of naked short selling in publicly quoted banks and insurance companies. As can be seen from the precisions below, the CSSF prohibition does not cover market transactions that follow a clear hedging intent or market transactions…
24 September 2008
CSSF – ban on naked short sales
In a press release of 19 September 2008, the Luxembourg regulator (CSSF) considers that in light of the current market situation, naked short sales are incompatible with the regulatory requirements governing market conduct, in particular where such sales distort or manipulate the market. The CSSF therefore prohibits market…
1 September 2008
Investment Funds – UCITS risk management process – clarification on the information to be provided to the CSSF
Two particularly relevant pieces of legislation in the context of eligible assets for investments by UCITS have recently been implemented in Luxembourg. The first one is the Grand-Ducal Regulation dated 8 February 2008, which amends certain definitions specified in the 2002 Law, and which replicates closely the EC Directive…
1 September 2008
Investment Funds – Update on the eligible assets for investments for UCITS
Two particularly relevant pieces of legislation in the context of eligible assets for investments by UCITS have recently been implemented in Luxembourg. The first one is the Grand-Ducal Regulation dated 8 February 2008, which amends certain definitions specified in the 2002 Law, and which replicates closely the EC Directive…
1 September 2008
Investment Funds – securities lending in relation to UCITS
A new regime applicable to securities lending operations performed by UCITS – and, in principle, by other UCIs subject to the 2002 Law – was introduced by CSSF Circular 08/356 released on 4 June 2008. The main point of this new regime is, by reforming the previous one (referred to in the Commission Directive 2007/16/EC,…
20 June 2008
Securitization in Luxembourg: some recent clarifications by the CSSF
In April 2008, the Luxembourg Commission for the Supervision of the Financial Sector (the ”CSSF”) published its report for 2007, in which it clarified the legal framework applying to securitization vehicles that are governed by the law of 22 March 2004. In particular, the CSSF addressed the main following issues: A…
2 June 2008
Tax reforms proposed by the Luxembourg government
In a speech addressed to the Luxembourg Parliament on May 22, 2008, Jean-Claude Juncker, the Luxembourg Prime Minister, shed lights on Luxembourg’s economic, social, and financial situation and proposed important changes, mainly from a taxation perspective. Brief overview of the main changes proposed: Relating to corporate…
30 April 2008
Amendment to the SICAR regime – possibility to have multiple compartments
On 21 February 2008, the Luxembourg government has introduced a draft law aimed to make more attractive the SICAR vehicle to private equity and venture capital investors. Brief overview of the main changes proposed in the draft law: introduction of possibility to create multiple compartments (as is already the case for…
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