Luxembourg regulator authorises first RQFII Ucits fund
The Luxembourg regulator CSSF has authorised the first Renminbi Qualified Foreign Institutional Investor (RQFII) fund under the Undertakings for Collective Investment in Transferable Securities (Ucits) scheme.
The Ucits can invest 100% of its net assets in China A-‐shares. It can invest in these shares through the use of the RQFII quota
granted to its manager by the competent Chinese authorities.
In order to authorise such an ‘RQFII UCITS’, the CSSF requirements relate to the following:
• the fact that the fund must be open-‐ended;
• the experience, competence and qualification of the manager;
• the application of appropriate risk management procedures;
• the correspondent bank of the depository and the segregation of assets at
the level of the correspondent bank of the depository.
The new development coincides with the release of the new figures underlining Luxembourg’s leading position as a European RMB centre.
As of June 2013, 18 asset managers have established RMB funds in Luxembourg with a total of more than 220bn RMB of AUM.