The latest compliance news: regulatory developments, punishments, guidance, permissions and authorisations for new product and service offerings.

Luxembourg has made changes to boost its standing as a major investment funds hub in Europe, industry group ALFI said yesterday, as it listed a raft of measures by regulators and policymakers in the European jurisdiction.  

Measures include: 

-- Reform of Luxembourg’s carried interest regime; 

-- Early implementation of AIFMD II and UCITS V fund regime laws; 

-- Modernisation and simplification of CSSF [the Luxembourg regulator] guidance for alternative fund structures; 

-- Enhanced transparency rules for UCITS exchange-traded funds; and 

-- Updated framework for crypto-asset exposure.

On 22 January, the Luxembourg Parliament adopted a reform of the carried interest tax regime, applicable as from 1 January 2026. Originally introduced in 2013 alongside the transposition of the AIFM Directive, the reform confirms the exemption for income derived from invested carry (subject to conditions) and enhances the attractiveness of non-invested carry schemes by extending reduced taxation at one-quarter of the ordinary tax rate, ALFI said.

On 12 February, the European jurisidction adopted amendments to the laws of 17 December 2010 and 12 July 2013, transposing the revised AIFMD and UCITS frameworks into national law. The updated framework harmonises liquidity management tools and delegation rules while preserving established operational models.

On 19 December 2025, the CSSF issued a new circular (circular 25/901) covering specialised investment funds (SIFs), SICARs (investment company in risk capital) and Part II UCIs (Undertakings for Collective Investment). The circular clarifies and simplifies existing rules, consolidating previous guidance while preserving core principles.

A draft law that was introduced last December proposes allowing private limited companies to defer payment of minimum share capital for up to 12 months after incorporation, subject to safeguards.

If adopted, the measure would accelerate the launch of special purpose vehicles and strengthen Luxembourg’s attractiveness as a company structuring jurisdiction, ALFI said. 

In February, the Luxembourg regulator also updated its guidance on the 2010 laws, revising portfolio transparency requirements for UCITS ETFs. All such ETFs – both active and passive – must now publish full portfolio holdings at least quarterly with a maximum delay of 30 business days.

Luxembourg has also removed the requirement for a statutory auditor’s valuation report for in-kind contributions. This streamlines ETF subscription processes.

On 4 February, the CSSF updated its crypto asset guidance: UCITS funds can get indirect exposure to crypto assets up to 10 per cent of their net asset value.

(We hope readers find this list of changes useful as a guide to what's happening in jurisdictions such as Luxembourg. Let us know if you have comments. Email tom.burroughes@wealthbriefing.com)