By definition, a cryptocurrency or virtual currency (VC) is a digital or virtual representation of value using cryptography to secure its transactions. Contrarily to centralised electronic money and traditional/fiat currencies (central banking system), cryptocurrencies use decentralized control, which works through the Blockchain technology. Well-known VCs include notably (i) Bitcoin, (ii) Ether and (iii) Ripple.
This newsletter is intended as a general discussion of the following topics: AML, Banking & Finance, Capital Markets, Investment Funds and Tax.
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On December 8th 2017, the Luxembourg tax authorities issued the new circular L.G.-A. No. 61 (replacing the previous Circular dated February 12th 2015, please see our previous newsletter dated March 2nd 2015) which aims to cover the procedure applicable to the request of tax residency certificates for collective investment funds (hereafter the “Circular”).
As a reminder, as from January 1st 2018, all entities advising on or selling a packaged retail and insurance-based investment product (PRIIP) to retail investors in the European Union are required to deliver a PRIIP compliant KID to their retail investors before any investment.
The Grand-ducal Regulation of December 21st 2017 relating to the fees to be levied by the CSSF (the “New Grand-ducal Regulation”) entered into force as of January 1st 2018 and has created a number of changes to the fees levied on investment fund vehicles and management companies. In general, almost every fee levied by the CSSF has been increased, including transformation charges, examination fees and annual charges in regards to investment funds.
The CSSF’s updated UCITS FAQ and the CSSF press release 18/02 dated January 5th 2018 relate to the deletion of section 1.4 of the UCITs FAQ which stated that “Non-UCITS ETFs are eligible investments for UCITS if they effectively comply with all criteria of Articles 2(2) and 41(1)(e) of the Law 2010, notwithstanding that the offering documents of non-UCITS ETFs grant possibilities which are not equivalent to requirements applicable to UCITS.
The Luxembourg Stock Exchange has revised for the third time in eleven years the X Principles of Corporate Governance (the “X Principles”), this time to include a new Principle 9 on corporate social responsibility (CSR) and to integrate Principle 6 (Evaluation of the performance of the Board) in Principle 2 (The Board of Directors’ remit). This 4th version of the X Principles entered into effect on January 1st 2018 and applies to annual reports for financial years as from that date.
En date du 17 janvier 2018, la Chambre des députés a voté la loi portant sur le bail commercial et modifiant le Code civil, dont le projet avait été déposé en date du 3 septembre 2015 par Monsieur le Ministre de l’Economie.
Jusqu’à présent, au Grand-Duché de Luxembourg le bail commercial était essentiellement fondé sur la liberté contractuelle voulue par le Code civil, ainsi que sur les articles 1762-3 à 1762-8 du Code civil, insérés par le biais d’un arrêté grand-ducal du 31 octobre 1936 destiné à protéger le fonds de commerce.