Investment funds (SICAV, SICAF)
The Société d’Investissement à Capital Variable (SICAV) – an open company - is a distinct legal personality with the legal form of a corporation; it has access to variable share capital which corresponds to the substantial value of the funds at any time.
The Société d’Investissement à Capital Fixe (SICAF) – a bound company -is also a legal form bestowed with a distinct legal personality – with bound capital, which operates as an open or closed fund.
SICAV, SICAF in Luxembourg are subject to approval, oversight and monitoring by the oversight board for financial markets (here, CSSF).
SICAV, SICAF with registered domicile in Luxembourg are exempt from income, capital-gains and withholding tax. Here, merely a tax d’abonnement (subscription tax) of 0.05% is levied on the fund’s net assets.
These funds must issue regular reports. Invoicing/accounting and annual reports are to be certified by an auditor licensed in Luxembourg.
SICAV and SICAF must appoint and indicate a depot bank headquartered in Luxembourg. The depot bank monitors the fund’s assets, ensures that the issuance and re-purchase of stock and shares/stakes takes place in compliance with legal regulations and that revenues/profits are applied in a manner in accordance with the company's articles of incorporation.
The investment managers or consultants require certification/licensing by the oversight board for financial markets. There are no limitations regarding the nationality of the persons or company who administers the fund or performs consulting work.
This instrument is only suitable for professional (institutional) investors, such as banks and insurance companies.
