Modernising Luxembourg's legislative framework for investment funds


A draft law presented in March 2023 by the Luxembourg Ministry of Finance was approved by the Chamber of Deputies on 11th July, 2023.

This project amends 5 Luxembourg laws: Part II of the UCI1 law on investment funds, the law on SIFs (Special Investment Funds) and SICARs (venture capital investment companies), the law on alternative investment fund managers and the law on RAIFs (Reserved Alternative Investment Funds).

What are its four major changes?
  • The possibility of adopting legal forms other than the “Société Anonyme2”, for SICAVs3 governed by Part II of the law of 17 December, 2010.

  • The minimum capital required to invest in the SIF, SICAR and RAIF laws has been reduced from €125,000 to €100,000 for a "well-informed" investor.

  • The authorised capital of these investment structures must be reached within 24 months of their creation date (12 months previously).

  • The Luxembourg subscription tax is waived for European Long-Term Investment Funds (ELTIFs) and Pan-European Individual Retirement Savings Plans (PEPPs).

The aim of this modernisation of Luxembourg's legislative framework for investment funds is to strengthen the competitiveness of the country's financial centre.

Jean-Pierre Gomez, Head of Regulatory & Public Affairs, Societe Generale Securities Services

1Undertakings for Collective Investments
2Société Anonyme: equivalent of a Public Limited Company.

3SICAV: open-ended investment company