Madoff case to test Luxembourg fund rules
Monday, December 21, 2009 : PermalinkReuters – Luxembourg’s drive to become a major funds domicile faces a stiff test next year when investors who lost money in Bernard Madoff’s $65 billion fraud seek compensation from UBS via a Luxembourg court.
The push to attract alternative investment vehicles like hedge funds as registered funds accessible to investors across Europe will also depend on how the Luxembourg financial regulator upholds rules on investor protection.
“It is very important the (Luxembourg) rules are enforced from an investor’s point of view. Some sophisticated investors rely on this,” said Dermot Butler, chairman of Ireland-based funds administrator Custom House Group.
