Bertrand Mariaux - Mastering Luxembourg's Asset Management Corporate Governance, Regulatory & Compliance Environment

Luxembourg Investment Funds Law | Private Banking & Wealth Management

Subscription, Commitment and Investor Eligibility: Entering a Luxembourg RAIF, SIF or SICAR
ByBertrand Mariaux 21/05/202621/05/2026

This article addresses the subscription, commitment and investor eligibility framework for reserved alternative investment funds, specialised investment funds and investment companies in risk capital. It does not address unregulated Luxembourg partnership structures or other vehicle types. Before a private-banking client commits capital to one of these Luxembourg private fund vehicles, three distinct elements must be…

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Luxembourg Holding & Financing Structures

Shareholder Loans in Luxembourg Wealth Structures: Legal Mechanics, Documentation, and Credit Governance
ByBertrand Mariaux 20/05/202620/05/2026

A shareholder loan is, at its core, a contractual debt obligation. When a shareholder advances money to a Luxembourg company and the company undertakes to repay it, the legal starting point is Article 1892 of the Luxembourg Civil Code, which governs the prêt de consommation — the simple loan. The rule is precise: the borrower…

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Luxembourg Financial Law

Drawdown Conditions in a Luxembourg Lombard Facility
ByBertrand Mariaux 20/05/202620/05/2026

In a Luxembourg Lombard facility, the release of funds is not triggered by a signed term sheet or commercial agreement. Drawdown is a legal and operational condition that must be verified at the level of credit approval, documentation, collateral provision, and compliance — in that sequence. The legal framework The governing instrument is the Law…

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Luxembourg Financial Law | Lombard Lending & Financial Collateral

Margin calls in Luxembourg Lombard lending: legal mechanics and documentary discipline
ByBertrand Mariaux 18/05/202618/05/2026

A Lombard loan is a credit facility collateralised by securities pledged for the benefit of the lending institution. The institution may enforce the pledge and realise the collateral if the borrower breaches the loan agreement or if another agreed enforcement event occurs. A margin call is not the security interest itself: it is the contractual…

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Luxembourg Fund Law | Financial Regulation

Financial Collateral: Drafting Secured Obligations Clauses
ByBertrand Mariaux 17/05/202617/05/2026

The secured obligations clause defines which obligations a financial collateral pledge actually secures. It is the operative boundary between the credit exposure and the collateral. Imprecision in that clause — whether through ambiguous drafting, accidental narrowing, or inconsistency with the facility documents — creates enforcement risk that may be difficult, and sometimes impossible, to cure…

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Luxembourg Financial Law | Banking and Finance | Regulatory Practice | Regulatory Practice

The Luxembourg Lombard Facility and Financial Collateral Framework
ByBertrand Mariaux 16/05/2026

A Luxembourg Lombard facility is secured lending against financial assets. The structure is straightforward in principle and demanding in execution: three components — the facility agreement, the pledge agreement, and the custody/securities-account control mechanics — must function as one coherent system. In a typical book-entry Lombard structure, each component is necessary. None is sufficient alone….

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Luxembourg Financial Collateral Law and Private Banking Credit Mechanisms
ByBertrand Mariaux 16/05/202616/05/2026

The Luxembourg Law of 5 August 2005 on financial collateral arrangements is a statutory foundation for secured lending against financial assets in private banking. It is not a general security regime for every ordinary commercial claim. It secures defined financial obligations through a collateral structure that must satisfy possession or control requirements and agreed enforcement…

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Luxembourg Financial Law | Private Banking & Wealth Management | Regulatory Intelligence

Luxembourg Financial Collateral and the Mechanism of Appropriation
ByBertrand Mariaux 14/05/202614/05/2026

Appropriation of Pledged Financial Instruments in Luxembourg Private Banking: The Enforcement Clause That Makes the Security Work We examines appropriation as an enforcement mechanism under the Luxembourg Law of 5 August 2005 on financial collateral arrangements, and its operational implications for private banking and Lombard lending. The Core Mechanism Appropriation is not a theoretical backstop. It is the provision by which a pledgee — typically the lender or bank — may…

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Banking & Financial Services Regulation | MiFID II Compliance | Wealth & Asset Management

Advice or Discretionary Management in Luxembourg Private Banking: Who Decides the Investment?
ByBertrand Mariaux 13/05/202614/05/2026

Investment advice versus discretionary portfolio management: The line between investment advice and discretionary portfolio management is one of the most frequently blurred in Luxembourg private banking — and one of the most expensive to get wrong. The legal distinction is simple: who makes the final investment decision. The operational consequences are anything but. Investment advice…

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Banking & Secured Finance | Financial Law & Regulation | Luxembourg Regulatory Framework

Luxembourg Lombard Lending: Pledge Mechanics, Custody Control, and Enforcement Under the Financial Collateral Law
ByBertrand Mariaux 12/05/202612/05/2026

Lombard lending — secured credit extended against a portfolio of pledged financial instruments — is a core tool in Luxembourg private banking and wealth management. The legal foundation is the Law of 5 August 2005 on financial collateral arrangements. However, the strength of a Lombard structure depends not on the pledge agreement alone, but on…

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