TAILIEUCHUNG - INVESTMENT MANAGEMENT: Luxembourg Regulated Investment Vehicles

If products could not deliver the prospectus-promised returns, in such a vicious circle event investment bank balance sheets would have to cover losses. This is a major area of policy interest. Investment banks and hedge funds both need to be encouraged to stress test their portfolios for an event like this, allowing for worst-case knock-on effects. If the size of position closures required is a large proportion of daily trading volume, a severe liquidity crisis could emerge. Investment banks in particular need to ensure that their capital remains sufficient to cover such a contingency. . | INVESTMENT MANAGEMENT Updated as at 1 March 2012 An overview of the legal and regulatory requirements cutting through complexity Luxembourg Regulated Investment Vehicles lu Executive Luxembourg Regulated Investment Vehicles 1 summary KPMG is pleased to present its updated fifth edition of the Luxembourg Regulated Investment Vehicles brochure incorporating the recent changes in the legal and regulatory environment. The purpose of the brochure is to provide an overview of the various vehicles that may be set up in Luxembourg covering the complete spectrum of the Fund industry. The overview covers the following aspects Legal and regulatory requirements Shareholding Reporting requirements Approval and supervision Taxation The Luxembourg fund industry in 2011 UCITS IV Luxembourg was the first country in the EU to transpose the UCITS IV Directive into national law and the early transposition through the law of 17 December 2010 has meant that regulatory compliance is higher on the agenda of UCITS and their Management Companies in 2011. A lot of work has been done to achieve compliance with the new UCITS IV organisational requirements that became effective on 1 July 2011. One of the big challenges faced by the UCITS industry lays in the creation of a new Key Investor Information Document KIID to replace the Simplified Prospectus. For all UCITS launched in 2011 the KIID was an obligation but existing UCITS have been able to benefit from grand-fathering provisions that effectively postpone implementation of the KIID until 1 July 2012. Another UCITS IV compliance area that required particular attention was the significant update of the UCITS risk management policy that was due for submission to the CSSF by 31 December .

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