Holding companies are excluded from the scope of the Luxembourg Law of 12 July 2013 on alternative investment fund managers as amended (“AIFM Law”) under Article 2.2(a) of AIFM Law provided that they qualify as “holding companies” as defined by Article 1(62) of AIFM Law. That definition is slightly different from the corporate concept of “financial participation companies” (commonly referred to in practice as “SOPARFI”).

To qualify as a holding company and be excluded from the scope of the AIFM Law, a holding company must be a company with shareholdings in one or more other companies, the commercial purpose of which is to carry out a business strategy or strategies through its subsidiaries, associated companies or participations to contribute to their long-term value, and which is either a company:

  1. operating on its own behalf and whose shares are admitted to trading on a regulated market in the European Union; or
  2. not established for the main purpose of generating returns for its investors by means of divestment of its subsidiaries or associated companies, as evidenced in its annual report or other official documents.

Should the holding company not be excluded from the scope of the AIFM Law, it must comply with the provisions of the AIFM Law.

For any other information or queries, please contact Renaud Le Squeren.