<p><strong>The CSSF Circular 14/591 regarding the protection of investors in case of a material change to an open-ended undertaking for collective investment (the “Circular”) explicitly lays down the administrative practice and provides clarifications in relation to the protection of investors in case of a material change to an open-ended undertaking for collective investment (the “UCI”).</strong></p>
<p>Up to today the situation was indeed not entirely clear on the Luxembourg market.</p>

<p><strong>New CSSF Circular 14/587 on the provisions applicable to credit institutions acting as UCITS depositary under Part I of the law of 17 December 2010 relating to undertakings for collective investment, as amended, and to all UCITS, where appropriate, represented by their management company.</strong></p>
<p>On 11 July 2014 the CSSF issued a new circular 14/587 (the “Circular”) applying to UCITS’ depositary banks and to the UCITS themselves regarding their relationship with their depositaries.</p>

<p><strong>On 23 July 2014 the Council of the European Union has formally approved the proposal for a directive of the European Parliament and of the Council amending Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities as regards depositary functions, remuneration policies and sanctions (the “UCITS V Directive”).</strong></p>
<p>The UCITS V Directive focuses on three main areas:</p>

<p><strong>On August 28, 2014 was published in volume L 257 of the Official Journal of the European Union¹ the Directive 2014/91/EU of 23 July 2014 amending Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) as regards depositary functions, remuneration policies and sanctions (the “UCITS V Directive”)</strong></p>

<p>The CSSF informs that the current form « Application questionnaire for the set up of an undertaking for collective investment » on the web site is replaced for UCITS only from 1 September 2014 by a new “Application questionnaire to set up an UCITS” (in English only) to be used for submitting to the CSSF an application for approval to set-up an UCITS.</p>

<p><strong>The French and Luxembourg Finance Ministers signed, on 5 September 2014, a Protocol amending Article 3 (the “Protocol”) of the France-Luxembourg double tax treaty for the avoidance of double taxation and the establishment of rules of reciprocal administrative assistance with respect to taxes on income and fortune (the “Tax Treaty”).</strong></p>

<p><strong>A bill of law submitted to parliament on 22 July 2013 intends to introduce in Luxembourg the private foundation ("<em>fondation patrimoniale</em>"). This has been in development for two years.</strong></p>

<p><strong>Le port franc, une opportunité de développement pour Luxembourg ?</strong></p>

<p><strong>Many years after the introduction of the Philanthropic Foundation¹, the draft bill n° 6595 dated 22 July 2013 presents the private wealth foundation (the “Private Foundation”). Although the two vehicles share the same name of foundation, they actually serve very different purposes, which result in two specific set of distinct rules on their organization and legal framework.</strong></p>

<p>Today, the Luxembourg District Court sitting in commercial matters has rejected the applications of ESFG and ESFIL to be placed under controlled management.</p>
<p>Thus, the Court considered that ESFG and ESFIL did not meet the conditions for a controlled management order, on the basis of the report on the financial situation of the applicant’s business prepared by the designated judge,  assisted by two experts.</p>