On 10 July 2013, Luxembourg adopted the Alternative Investment Fund Manager Directive (AIFMD) into Luxembourg law.
The Alternative Investment Fund Managers Law (AIFM Law) implements new rules for the authorisation, operation and transparency of alternative investment fund managers managing and/or distributing alternative investment funds within the European Union.
The AIFM Law mainly impacts specialised investment funds, undertakings for collective investment subject to Part II of the Law of 17 December 2010 on undertakings for collective investment and investment companies in risk capital.
While transposing the AIFMD into Luxembourg law, the Luxembourg legislator has also taken the opportunity to:
- revisit the existing regimes applicable to the common limited partnerships (sociétés en commandite simple) and corporate partnerships limited by shares (sociétés en commandite par actions) and create a new regime for special limited partnerships (sociétés en commandite spéciale);
- introduce a new regime for depositaries of assets other than financial instruments;
- clarify the tax treatment of carried interest in Luxembourg.
The AIFM Law is expected to be in force prior to or on 22 July 2013. However, existing alternative investment funds and alternative investment fund managers falling in the scope of the AIFM Law benefit from a grandfathering period until 22 July 2014, the date on which they will have to comply with the AIFM Law.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
