law of 20 December 2002 - Alfi

UCITS subject to Part I of the law of 30 March 1988 established prior to 13 February 2002may elect, until 13 February 2007, either to remain subject to the law of 30 March 1988 or tobe governed by the law of 20 December 2002.I. General considerationsA UCI shall be deemed to be situated in Luxembourg if the registered office of themanagement company of the common fund or of the registered office of the investmentcompany is situated in Luxembourg.Depending on their characteristics, Luxembourg UCIs governed by the law of 20 December2002 will be subject either to Part I or to Part II of such law.This classification permits the distinction between:– undertakings within the meaning of Council directive 85/611/EEC of 20 December1985 on the coordination of laws, regulations and administrative provisions relatingto undertakings for collective investment in transferable securities (UCITS), asamended;– the other undertakings which do not fall within the scope of application of directive85/611/EEC, as amended.II. Definition of UCIs governed by Part I of the law of 20 December 2002Part I of the law of 20 December 2002 applies to all UCIs the exclusive object of which isthe investment in transferable securities and/or the other liquid financial assets referred toin Article 41 (1) of the law.Considering this aforementioned definition, the criterium which determines whether a UCIis subject to Part I or Part II of the law of 20 December 2002 is the intended investmentobjective. If the UCI invests in transferable securities and/or the other liquid financialassets referred to in the aforesaid Article 41 (1) of the law of 20 December 2002, it issubject to Part I save for the exceptions commented in section III. below.UCITS subject to Part I of the law of 20 December 2002 are of the open-ended type sincethe rules to which they are subject provide that they, directly or indirectly, redeem theirunits or shares at the request of the investors.Due attention must be given to the abovementioned transitional provisions of the law of20 th December, 2002 and, in particular, to Article 134 (5) concerning UCIs which exist onthe date of the entry into force of such law and which are capable of becoming UCITSsubject to Part I as a result of the extension of the concept of eligible assets.Accordingly, a UCI which is presently governed by Part II of the law of 30 March 1988 mayhave to submit itself, because of its investment policy, by 13 February 2004 at the latestto the provisions of Part I of the law of 20 December 2002, unless it is excluded from PartI pursuant to Article 3 of such law.III. Definition of UCIs subject to Part II of the law of 20 December 2002Part II of the law of 20 December 2002 applies to all UCIs the principal object of whichis the investment in securities other than transferable securities and/or the other liquidfinancial assets referred to in Article 41 (1) of the law, as well as to all UCITS excludedfrom Part I.181