The Luxembourg Government on 12 August 2011 submitted to Parliament a bill (the “Bill”) to amend the Luxembourg law of 13 February 2007 applicable to specialised investment funds (“SIFs”) (the “SIF Law”).

The Government’s intent, among other things, is to reflect the experience of the Luxembourg regulator, the Commission de Surveillance du Secteur Financier (the “CSSF”), and adapt the SIF Law with respect to the AIFM Directive,1 which must be implemented into national law by 22 July 2013.

If voted, the Bill will bring numerous changes to the current SIF regime.

The Bill provides for changes to the regulatory approval process and includes new provisions with respect to portfolio management, the delegation of certain functions to third parties, risk management and conflicts of interest. Finally, the Bill, if voted, will introduce into the SIF Law additional flexibilities already adopted for UCITS and non-UCITS retail funds by the Law of 17 December 2010 on undertakings for collective investments (the “UCI Law”).