What is a Part II UCI?
Part II refers to the second part of Luxembourg’s Law of 17 December 2010 on undertakings for collective investment. It is a product regime for funds that do not fall under the UCITS rules. The choice of legal form, including FCP or investment company, affects governance and operating responsibilities.
Authorisation and oversight
Part II UCIs require authorisation from the CSSF before carrying out their activities. The fund must meet the applicable requirements for administration, depositary and documentation. Authorisation is not a guarantee of returns or protection against losses.
Retail access is not a suitability conclusion
Part II funds may be offered to retail investors, but the exact distribution conditions and eligibility must be checked for the individual fund and country. A fund being legally open to retail investors does not make every strategy suitable for every saver.
Before launching or investing
- Clarify the investment strategy, liquidity terms and permitted assets.
- Check the management/AIFM model, depositary and other service providers.
- Read the prospectus and the PRIIPs KID, where applicable.
- Verify the actual fund against CSSF records and current official documents.