The Luxembourg law of 22 March 2004 on securitisation, as amended (the Securitisation Law) governing Luxembourg securitisation vehicles (SVs) has been in force for almost two decades now and it has become a cornerstone of success for Luxembourg as a leading centre for securitisation and structured finance transactions. It has created a reliable and investor-friendly legal and tax framework for securitisation transactions carried out by Luxembourg SVs featuring a high degree of flexibility. Although they say that all good things must come to an end, some of them just get better. The Luxembourg Parliament (Chambre des Députés) has just passed a new bill amending the Securitisation Law.
So, what's in it for you?
The makeover of the Securitisation Law is definitely good news to the Luxembourg market. Although the freshly passed bill does not introduce any revolutionary changes, it hones the already existing tools for a better, sharper, more sophisticated securitisation framework.
