#Securitisation #Fund in #Luxembourg

The new amendments to the Law have been designed to offer more legal certainty as regards #securitisation undertakings subject to the supervision of the CSSF by incorporating the existing guidance from the CSSF in the #securitisation Law, as follows:? In agreement with the existing CSSF guidelines, issuance of financial instruments will be deemed to be made “on a continuous basis” if the #securitisation undertaking makes more than 3 issuances of financial instruments to the public within the same financial period. The Law further confirms that the number of issuances should take into consideration all the compartments rather than on a compartment-by-compartment basis.

? An issuance of financial instruments will be considered to be made “to the public”, if all 3 of the following criteria are met:

?a) the issuance is not made to professional clients within the meaning of Article 1(5) of the law of 5 April 1993 on the financial sector, as amended

b) the denomination of the financial instruments is less than EUR 100.000 (this amount is aligned to the Prospectus Regulation); and?

c) the issuance is not carried out by way of private placement (which must be assessed on a case-by-case basis according to the communication means and the technique used to distribute the financial instruments).

The main benefits of Securitisation for investors?

1. Wide number of possibilities in terms of risk, yield, and maturity there is a great variety of product range offered to meet investors' requirements

2. Tailored #investment sources: #investors are able to pick and choose the additional asset(s) lacking in their existing #investment portfolio Interest paid by and payments allocated to holders of shares are not subject to any withholding tax. (Subject to ATAD 1)

3. Potential higher returns in the case of a specific high-quality credit-enhanced assets pool, there is a greater possibility to earn higher returns on #investments

4. Risk sharing due to the nature of the #securitisation , investors share all aspects of the vehicle with the originators, this includes exposure to specific assets unreachable for them most of the time.

5. On top of this, the investors will benefit from the originator's expertise and therefore maximize the portfolio value.

6. Furthermore, the risk retention requirement is reinforced due to an alignment of interest between #investors and originating banks as they invest alongside each other

7. Finally, thanks to the #securitization , institutional #investors are able to lend directly to Small & Medium Enterprises (SMEs)

#securitisation is an operation by which investors buy securities, i.e. transfer cash to a #securitisation #vehicle, in order to obtain the proceeds from the #investments made by the #securitisation #vehicle.Securitisation vehicles group assets that produce a predictable cash flow or grant the right to a future cash flow, transforming these assets into securities (shares, bonds, or other securities). Investors however also carry the risk of uncertainty in these cash flows. These securities can be qualified as #Asset #Backed #Securities (#ABS) because the underlying assets serve as collateral for the investment. As such the investor normally carries two risks: the uncertainty of a future cash flow and the risk of valuation of the underlying asset.

Type of Securities

? Notes and Bonds

? Wrapper

? Tracker certificate

? Actively Managed Certificate?

? Tokenization

? Shares and Units

? Collateralised Loan Obligations

Type of assets able to be securitised

? Receivables

? Debt Restructuring?

? Intellectual Property?

? Future Cash flow

? Real Estate

? Fleet- machinery

? Pool of loans

? Infrastructure – SRI

? Arts Collection

? Financial Instruments and derivatives?

? Private Equity

? Commodity

? Litigation Finance

? Green Energy

Thank you.

GLK