Luxembourg has become the first European Union member state to transpose the Ucits IV Directive into national law. Various provisions of the legislation will come into force as of January 1 following approval of the law by the Luxembourg Parliament on December 16.
Luxembourg was also the first EU country to incorporate into national law the original Ucits Directive, which was formally adopted by the European Community (as it then was) almost 25 years ago to the day, on December 20, 1985.
The legislation replaces the law of December 20, 2002 on undertakings for collective investment – the legislation that implemented the Ucits III directives in Luxembourg. It was placed before Parliament on August 6 this year and will be published shortly in the Mémorial, Luxembourg’s Official Journal.
In addition to transposing the Ucits IV Directive into national law, the new legislation implements additional legal changes for both Ucits and non-Ucits funds as well as management companies. As with previous fund legislation, Part I deals with Ucits funds and Part II funds outside the scope of the EU Directive.
Existing Ucits funds have a choice between becoming subject to the new legislation immediately as of January 1 or remaining governed by the 2002 law until July 1, when they will automatically become subject to the new legislation. Ucits funds established between January 1 and July 1 next year have a similar choice, but all existing non-Ucits (Part II) funds will automatically be subject to the new law immediately.
The same timescales apply to the management companies of these categories of funds; most other provisions of the legislation, including tax provisions, take effect on January 1.