Luxembourg has become the first country in the EU to pass Ucits IV laws. The Luxembourg Parliament ratified the Ucits regulations on 16 December, almost 25 years after the first Ucits directive was adopted on 16 December 1985.
A number of provisions - such as fiscal reliefs - will come into effect as soon as 1st January 2011.
Claude Kremer, Chairman of the Association of the Luxembourg Fund Industry (Alfi), said: “Ucits is a success story for the European Union and asset managers based all over Europe and beyond. We are confident that with the support of all players, Ucits products will continue to expand their global reach. Ucits today stands for safety, transparency and cost-efficiency”.
Camille Thommes, director-general of Alfi, said: “Ucits have proved to be a pioneer ‘passporting’ device for funds. We are working to get it right, but believe it will be possible to replicate the success of Ucits when the Aifm [Alternative Investment Fund Managers] Directive comes into effect.”
He added: “We also expect to see growth and consolidation within Luxembourg’s fund industry. Earlier this year, a study by Lipper FMI estimated that Luxembourg’s fund industry will grow at a rate of 10.4% over the next five years, resulting in assets of €2.6trn by 2014.”
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