Investors
and creditors of a securitisation vehicle may entrust management
of their interests to one or several fiduciary representatives.
This law applies only to those fiduciary representatives whose
legal office is in Luxembourg.
1. The deed by which fiduciary representatives accept their
mission is to specify their rights and powers, in particular
those concerning their representation, designate the groups
of investors or creditors on behalf of whom they will act and
provide a procedure for their replacement.
2. Without further assurance this deed commits all investors
and creditors who have approved the fiduciary representative.
Subscription or acquisition of stocks and bonds of a securitisation
vehicle that appoints a fiduciary representative holds the
value of acceptance of him and of his mission.
Investors and creditors may also give fiduciary representatives
powers to act in their interests as fiduciary in accordance
with trust and fiduciary contract law.
Rights and goods these representatives acquire on behalf of
investors and creditors make up assets they hold in trust
separately from their own and from any other asset they hold
in trust.
Approval
of fiduciary representatives
Fiduciary representatives subject to this law are to be
approved by the Minister whose authority covers the CSSF.
They are only allowed to practise activities other than
their main function as secondary or subsidiary activities.
1. Approval for fiduciary representation activity is only
awarded to investment companies whose registered capital
and equity is of at least four hundred thousand Euros in
value.
2. It is required to inform the CSSF of the identity of
direct or indirect shareholders or partners, natural persons
or legal entities that hold a qualified participating interest
with the fiduciary representative to be approved, under
the terms of article 18 of the amended law of 5 April 1993
on the finance sector, and of the amount of these participating
interests.
3. In order to obtain approval, members of administration,
management and monitoring bodies as well as shareholders
and partners concerned by the previous article are to justify
their professional good repute.
Good repute is assessed on the basis of the legal background
and on all factors likely to establish that the persons
concerned enjoy a good reputation and offer all guarantees
of irreproachable business dealings.
4. Persons in charge of management are to hold appropriate
professional experience.
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