Leroy & Goldbach: Leading the Way in AIFMD II Implementation in Luxembourg

Luxembourg continues to solidify its position as the global leader in investment funds with the introduction of Draft Bill No. 8628. This legislation implements AIFMD II and modernizes the regulatory framework for Alternative Investment Fund Managers (AIFMs) and UCITS Management Companies (ManCos). At Leroy & Goldbach, a boutique law firm specializing in investment funds, we are at the forefront of guiding clients through these transformative changes, ensuring they emerge stronger and more competitive.

What Does AIFMD II Mean for Fund Managers?

The bill aligns Luxembourg with the revised EU framework, introducing key updates that create both opportunities and compliance imperatives:

• Expanded Permitted Services: AIFMs and UCITS ManCos gain access to new activities, unlocking innovative strategies.

• Loan Origination Safeguards: Robust rules enable debt fund strategies while mitigating risks.

• Clarified Delegation Rules: Enhanced oversight ensures compliant and efficient operations.

• Flexible Liquidity Management Tools: Tools like redemption gates and side pockets provide greater agility in volatile markets.

• Boosted UCITS ETF Competitiveness: Exemption from auditor reports for in-kind contributions streamlines operations.

• Enhanced Transparency: Clearer reporting on fees, costs, and risk strategies fosters investor confidence.

Key Timelines:

• Expected implementation: April 2026

• New reporting obligations: Starting 2027

Why It Matters

These reforms reinforce Luxembourg's status as a premier fund hub, balancing innovation with stringent investor protection. For fund managers, proactive adaptation is essential to maintain compliance, seize market opportunities, and stay ahead in a dynamic landscape.

How Leroy & Goldbach Can Support You

Our expertise in investment funds, combined with a client-centric approach and fixed-fees model, delivers tailored solutions:

• Strategic Compliance: Build robust delegation monitoring systems aligned with new standards.

• Operational Excellence: Customize liquidity management tools for peak performance.

• Debt Fund Optimization: Conduct reviews to ensure compliance and maximize returns.

• Transparency Leadership: Create investor-focused frameworks for fees and risks.

Let us handle the regulatory complexities so you can focus on growth. Contact Leroy & Goldbach today to thrive under AIFMD II and shape the future of investment funds.

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Virginie Leroy & Lissie Goldbach

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