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.
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.
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.
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.