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By Eduard von Kymmel, Head of VP Fund Solutions *
Due to negative press as well as a number of regulatory initiatives, offshore funds and jurisdictions continue to face growing pressures. The solution: create or redomicile an existing fund into a member state of the European Union (EU) such as Luxembourg.
Historically, funds were domiciled in offshore jurisdictions to achieve tax neutrality at the level of the fund as well as to ensure maximum flexibility for the asset allocation policy.
Through the choice of a suitable domicile, asset managers of these funds were able to maximise the potential for tax optimisation on the one hand while limiting liability risks on the other.
Of course European regulators use a...
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