Yesterday, a second draft law was released aiming at mitigating Brexit effects for the investment fund sector. It follows the first draft law on Brexit, which introduced among others a grand-fathering period of up to 21 months during which UK management companies of Luxembourg undertakings for collective investment in transferable securities (UCITS) and UK alternative investment fund managers (AIFMs) would be able to respectively continue managing Luxembourg UCITS funds and continue managing/providing services to Luxembourg AIFs in case of “hard” Brexit.
The second draft law released yesterday aims at modifying the law of 17 December 2010 on undertakings for collective investment (UCIs), as amended (the UCI Law) and the law of 13 February 2007 on specialised investment funds (SIFs), as amended (the SIF Law) to mitigate two additional Brexit effects.