A new investment product is now being designed by the Luxembourgian investment funds business. It is called Reserved Alternative Investment Fund, RAIF, and it is expected to be ready for this year.
First of all, note that the characteristics of this investment fund are similar to those of the SIF-SICAV’s. However it is important to highlight that the RAIF is not going to be under the control of the “Commission de Surveillance du Secteur Financier”, CSSF. This is the Public Institution responsible for overseeing the investment funds in Luxembourg, checking that all the legal requirements are met.
In this case, the institution responsible for the verification of RAIF’s fulfilment of all legal requirements will be the Alternative Investment Fund Managers, AIFM. This institution may be located either in Luxembourg or in any other European Economic Area Member States.
Furthermore, the competent institution for the supervision of these AIFM would indirectly monitor the RAIF.
It is expected the RAIF will be flexible to choose the Company’s structure through any kind of legal entity. Basically, the goal is to encourage the marketing of that fund by significantly reducing time to launch the fund in the market.
With regard to the taxation, the RAIF will have the same tax treatment than the SIF-SICAV of Luxembourg. That is, they are subject to an annual subscription tax rate of 0.01% on the NAV.
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