FAQ concerning the Law of 28 July 2014 regarding immobilisation of bearer shares and units

On 17 November 2023, the FAQ concerning the Law of 28 July 2014 regarding immobilisation of bearer shares and units was updated to Version 3.
The updated FAQ provides comprehensive insights into the ramifications of the Law of 28 July 2014 on investment funds in Luxembourg. It mandates the appointment of a Depositary and necessitates the deposit of bearer shares or units, with specific criminal sanctions for non-compliance. The law applies to various fund types (UCITS, UCIs, SIFs, and SICARs) issued with bearer shares or units, effective from 18 August 2014. Boards of affected funds must designate a Luxembourg-based Depositary, and immediate deposit is required for post-18 August 2014 issuances. Pre-18 August 2014 issuances have set deadlines for deposit and potential cancellation. Shareholders must be informed of the legislation and Depositary identity through multiple channels, including prospectuses, websites, newspapers, and distribution chain communications. This underscores the importance of compliance with the law’s obligations and deadlines, ensuring protection of shareholder interests and maintaining regulatory adherence within the Luxembourg investment fund sector.
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The latest update of the FAQ, published on 17 November 2023 as Version 3, replaces in Question 5 the terms “registrar and transfer agent” by “UCI administrator” in line with CSSF Circular 22/811. We would therefore like to present Question 5 in full, together with a brief summary of the corresponding answer:
##### 5. Who may be appointed as Depositary?
The 1915 Law’s Article 42(2) delineates eligible Depositary appointees, mandating their establishment in Luxembourg. Under the 2014 Law, service providers of affected investment funds (for example a UCI administrator or depositary bank), qualify for Depositary roles, contingent on compliance with Article 42(2) of the 1915 Law.