law of 20 December 2002 - Alfi

CHAPTER IRULES APPLICABLE TO UCIs OTHER THAN UCITSThe law of 30 March 1988 does not provide for the collective investment objective of UCIsother than UCITS which means that such UCIs may carry out investments in assets otherthan transferable securities.The detailed provisions which provide investors in traditional UCITS with certain safety guaranteesmay not be applied entirely as they stand to UCIs the objective of which differs fromthat of such UCITS, in particular with respect to the particular nature of the investment policyof these UCIs which makes it impossible to apply certain operational rules which must beobided by traditional UCIs. UCIs the objective of which differs from the objective of traditionalUCITS must therefore be submitted to a certain extent to a particular regime the rules ofwhich are differentiated according to the nature of their investments.To date, the supervisory authority has set up separate rules for three types of specialisedUCIs the principal object of which is either:- the investment in venture capital which means the investment in securities of unlistedcompanies either because these companies have been recently formed or because theystill are in the course of development and therefore have not yet obtained the stage ofmaturity required to have access to stock markets; or- the investment in commodity futures contracts and/or financial futures contracts and/or inoptions; or;- the investment in real estate.The separate rules established by the supervisory authority for each of the three specialisedtypes of UCIs do not replace the general rules which remain applicable, but only modify certainrules in order to adapt them to the particularities of each type of UCI.The particular rules applicable to the UCIs referred to here are specified under headings I.,II. and III. hereafter.In specific cases, the CSSF may grant certain derogations from these rules on the basis ofadequate justification.I. Rules of the particular regime applicable to UCIs the principal object of which is theinvestment in venture capital.The rules provided for hereafter modify the rules of the general regime on the followingpoints:1. Management and supervisory bodies.With regard to the professional qualification, the directors of the management bodies and,where applicable, the investment advisors, must have specific experience in the field ofinvestment in venture capital.120