Last Updated on June 3, 2025 by Arnaud Collignon
FAQ on Sicar: Understanding the Key Aspects
The Securities and Investment Companies Act (SICAR) is a significant framework for investment companies in Luxembourg. This post aims to clarify common questions regarding SICAR, its purpose, and its operational guidelines.
What is SICAR?
SICAR is designed to provide a regulatory framework for investment companies that primarily focus on investing in securities. It allows for a flexible structure while ensuring compliance with regulatory standards.
Key Features of SICAR
- Investment Flexibility: SICARs can invest in a wide range of assets, including equities, bonds, and other financial instruments.
- Regulatory Compliance: Companies must adhere to the regulations set forth by the CSSF (Commission de Surveillance du Secteur Financier).
- Tax Benefits: SICARs enjoy certain tax advantages, making them an attractive option for investors.
Who Can Establish a SICAR?
Any legal entity can establish a SICAR, provided they meet the necessary criteria set by the CSSF. This includes:
- Having a minimum capital requirement.
- Complying with the investment policy outlined in their prospectus.
Operational Guidelines
To operate as a SICAR, companies must follow specific guidelines, including:
- Submitting a detailed prospectus to the CSSF.
- Ensuring transparency in operations and reporting.
Conclusion
Understanding the SICAR framework is essential for anyone looking to invest or establish a company in Luxembourg’s financial landscape. For more detailed information, please refer to the official CSSF documentation.
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