How Luxembourg’s fund industry is impacted by FATCA?

Luxembourg is the largest fund domicile in Europe. Luxembourg-domiciled investment structures are distributed in over 50 countries, with a particular focus on Europe, Asia, Latin America and the Middle East. Structures impacted by FATCA rules are funds invested in the U.S. market including, but not limited to, funds of funds, exchange-traded funds, hedge funds, private equity and venture capital funds, other managed funds, commodity pools, and other investment vehicles.

For widely-held funds, identifying U.S. investors is difficult given the number of investors. The Luxembourg fund distribution ...