Until the entry into force of the law of December 21 2012 transposing EU Directive 2010/78/EC, investment advisers of undertakings for collective investment established in Luxembourg were expressly exempt from the scope of the law of April 5 1993 on the financial sector (referred to as the 'Financial Sector Act').

The new law, which entered into force on January 1 2013, now requires investment advisers to apply for a licence to carry out their activities under the Financial Sector Act. After receiving authorisation they are required to fulfil all requirements and information duties as set out in the Financial Sector Act.

Further, the new law provides for a limited grandfathering period for investment advisers to comply with these new requirements by June 30 2013. To that effect, the Luxembourg financial sector regulator, the Commission de surveillance du secteur financier, issued a press release (13/02) asking all investment advisors to submit an application for authorisation before March 1 2013.

In addition, the new law specifies the exemption provisions applicable to investment managers of undertakings for collective investment established in Luxembourg. Only management companies that fall within the scope of Chapters 15, 16, 17 or 18 of the law of December 17 2010 on undertakings for collective investment are exempt.

The legislature considers this a clarification, although before the new law entered into force, investment managers that did not fall under the scope of the 2010 law were also exempt.

For further information on this topic please contact Pierre Reuter or Tobias Seidl at NautaDutilh by telephone (+352 26 12 29 1), fax (+352 26 68 43 31) or email (pierre.reuter@nautadutilh.com or tobias.seidl@nautadutilh.com).

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