Investment Fund Managers in Luxembourg

In Luxembourg, the CSSF uses “investment fund managers” (IFMs) as the umbrella term for the entities that manage investment funds: UCITS management companies, other management companies, authorised AIFMs, self-managed investment companies and internally managed AIFs, as well as Luxembourg branches of foreign managers. Every IFM needs CSSF authorisation before it starts business.

What the CSSF expects of every IFM

• Capital: at least EUR 125,000, plus 0.02% of the portfolio above EUR 250 million, up to EUR 10 million in total; self-managed funds at least EUR 300,000.
• Substance: a board of at least three members, at least two conducting officers and at least three full-time staff in Luxembourg.
• Central administration and decision-making in Luxembourg.
• Delegation is possible, but the IFM must never become a letter-box entity.