The Grand Duchy of Luxembourg, located in the middle of Europe, in 1957 was one of the six founding countries of CEE. It is the main financial centre of the EU, is the country of residence of most of the Community Funds, as well as banks, insurance companies, hedge fund management companies, and it has been ranked in the top category AAA. The Commissariat aux Assurances is the Supervisory Authority for the financial and insurance market.

Insurance secrecy: Law of 6 December 1991: (subsequent modified)

art. 111-1 (law of 5 November 2006)

1.“The directors, members of the management and supervisory bodies, executives and other employees of insurance undertakings and their agents, as well as insurance brokers, insurance sub-brokers and other employees of insurance brokers, shall be obliged to mantain secrecy regarding any confidential information entrusted to them in connection with their professional activities.”

Asset Protection: Law of 27 July 1997

art. 114

1.The surrender right and the right of reduction of a contract belong to the policyholder of the assurance contract. These rights may not be exercise by partner or creditors. Existence and operating conditions can be fixed by a gran-ducal regulation.

art. 116

1.Rights of an assurance contract can be given as garantee; this can be made only by the policyholder of the assurance contract; both his partner and creditors are excluded.

Investor Protection: Law of 6 December 1991

art. 39 (Law of 11 March 2004)

“All the matching assets of technical provisions consitue a segregated group of assets allocated preferencially to garantee payment of the insurance claims”

(Law of 8 August 2000)

Such preferential right takes precedence over all other preferencial rights as soon as the matching assets of the technical provisions are registered in the permanent inventory provided for in Article 37 or as soon as the mortgage registration referred to Article 38 becomes effective.

Investment rules:

To protect investors, the Commissariat aux Assurances, has planned a series of restrictive investment rules for life insurance products linked to investment funds. For funds that overtake $ 2.5 million, however, there is complete freedom of investment.