Luxembourg Funds

Milo / 28.06.2021

"for an unregulated fund organised as a GP-SLP where the GP decides to register with the CSSF as 'below-threshold manager' (indeed recommended when active management of the underlying is done, especially in financial instruments), the CSSF registration is not included in the price we show and it would cost 5K EUR extra.

I also confirm that the RR and RC are required at GP level for an unregulated fund only if it registers as 'below-threshold manager' with the CSSF. None of these services are quoted in our offer. Abalone itself does not offer the service, I have asked Fundamentals though if it does and will let you know." - We have not received any feedback on this query until today...

Milo / 28.06.2021

"for a regulated Luxembourg fund the responsable du contrôle du respect des obligations (RC) is a person employed by the AIFM, normally its MLRO. However, twhen the AIFM is not based in Luxembourg, as it is the case for Abalone Asset Management, this requirement by the CSSF is not applicable as not enforceable by the CSSF itself. Having said that, our AIFM does have an MLRO which fulfills AML responsibilities similar to what an RC does.

What the Luxembourg fund instead must have is the responsable du respect des obligations (RR), which typically is a Luxembourg-based director of the fund. Since our offer limits itself to AIFM service, such service and related quote is not included in our offer and will be quoted when reaching out to other service providers once we obtain the structuring mandate.

Please see attached for a better understanding."

Well-Informed Investor means every investor who is not a professional investor and fulfils the following conditions: (a) the investor confirms in writing that he is a well-informed investor and that he is aware of the risks related with the proposed investment, and (b) either his investment in the AIF amounts, at least, to €125,000, or he is assessed as a well-informed investor, either by a credit institution that falls within the scope of the Banking Laws as amended, or by an Investment Firm, or by a UCITS management Fund and the above mentioned assessment shows that he has the necessary experience and knowledge to be able to evaluate the appropriateness of the investment in the AIF.

Source: https://mariauxavocats.com/vademecum/5gc6lxbdnflc7nhrzj643n7532p6k9

"Benedikt recently discussed your case with a tax expert and it came out that an implementation via a limited partnership structure would be suboptimal for your case. For this reason the offer was made with a Société Anonyme, as you will notice.

As far as I understood from Benedikt, with this newly proposed variant a tax event is triggered only at the time of payment to the investors and not as with the limited partnership structure at each transaction inside the fund.

You will certainly receive more detailed information directly from Benedikt at first hand upon request."