Reserved Alternative Investment Funds (RAIFs) – Draft Law deposited with the Luxembourg Parliament
The Draft Law was approved by the Luxembourg Council of Government last November 27th 2015 and in principle it is expected that the Luxembourg parliament will approve it smoothly. The draft Law should enter into force on the second quarter of 2016.
RAIFs are unregulated alternative investment funds which will enjoy all of the flexibilities offered to specialised investment funds (“SIF”) and investment companies in risk capital (“SICAR”), such as the variability of the share capital, the lack of restriction on distributions and the possibility to have multiple sub-funds. RAIFs shall be submitted to the same favourable tax treatment as the one applicable to SIF or SICAR.
The creation of a new investment fund framework has been conceived to facilitate the set-up of alternative investment funds and to respond to the needs of promoters, who are willing to set-up Luxembourg alternative investment funds without the disadvantages of being subject to the supervision and regulation of the CSSF.