SIF and Well-Informed Investors

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SIF and Well-Informed Investors

Deloitte Luxembourg can help you getting compliant with the requirements of Article 2 and Article 2 (3) of the amended SIF Law.

Context

In accordance with Article 2 of the amended Specialised investment fund (SIF) law, well-informed investors can be an institutional investor, a professional investor as well as any other investor that:

  • has declared in writing his/her adhesion to the status of well-informed investor, and
  • (i) invests a minimum of EUR 125,000 in the specialised investment fund, or
    (ii) has obtained a statement from a credit institution or from a management company as defined in the Directive 2001/107/EC testifying to his expertise, his experience and his knowledge to appraise in an appropriate manner an investment in the specialised investment fund.

Key Issues
Article 2 (3) of the amended SIF Law specifies that the specialised investment fund shall have the means necessary to ensure compliance with the requirements related to the definition of well-informed investors. This new requirement is applicable since April 1, 2012.

What does this imply for the SIF?

  • At initial subscription date, management will check the compliance of the investor with the definition of well-informed investors;
  • And, subsequently, will monitor that such investor remains compliant over time.

What is the challenge?
Our market intelligence in the SIF industry has revealed that compliance with the requirements of Article 2 and Article 2 (3) of the amended SIF Law may represent a real challenge, particularly when financial intermediaries (such as nominees, distributors, etc.) invest in the SIF on behalf of underlying investors. 

Our services

How can Deloitte Luxembourg help?

  • Assessment of the compliance of existing monitoring procedures with the requirement of Article 2 (3) of the SIF law: GAP analysis;
  • Assistance in the design of monitoring procedures reflecting the requirements of Article 2 (3);
  • Assistance in the performance of checks on the investors compliance with the requirements of Article 2 (3);
  • Annual health check of the compliance of the monitoring procedures with market practice. 
Our services for SIF

Get in touch

Michael JJ Martin

Michael JJ Martin

Partner | Forensic & AML, Restructuring

Michael is a partner within the advisory & consulting department and leads the forensic and restructuring practice. Michael has specialised in investigating and preventing money laundering and fraud. ... More

Benjamin Lam

Benjamin Lam

Partner | Investment Management Leader

Benjamin is a partner within the audit department and has over 20 years of experience in the financial services and commercial industries. He leads Deloitte Luxembourg's private equity and real estate... More