DCG Highlights the new SIF requirements
Small and mid-sized Specialised Investment Funds are still not ready for the big regulatory changes coming into effect this year, warns a Luxembourg service provider.
Unique to the Grand Duchy, SIFs are tailor-made vehicles intended for institutional and sophisticated individual investors. Created in 2007, the Chamber of Deputies revamped the law regulating the funds earlier this year, bringing them into alignment with new EU-wide rules on “alternative” investment funds, the AIFM directive.
Among other measures, starting on June 30 SIFs will need to have “an independent risk management function,” according to Daniela Klasén-Martin, managing director of DCG in Luxembourg. Her firm provides administration and management services, primarily to real estate and private equity funds.
“Details such as a description of the risk management functions and the split of responsibilities and proof of independence of risk management processes will be required.” Yet in her view, many of the funds are not equipped to handle the new regime.
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