In the past decade, Luxembourg has grown to become a leading source of regulated and unregulated securitization vehicles (SV). A Securitization Law, which was adopted in 2004, was a key driver of the country’s financial growth. That law stated that an SV may either be a limited private company or a contractual securitization fund. In addition, the law puts no limits on investor eligibility. Any company that does not offer public securities on a continual basis does not require any regulatory oversight.
Many investors perceive Luxembourg as having an attractive financial climate since it is politically stable and neutral. Additionally, the country’s multilingual, multi-ethnic population, and its position in the heart of Europe, make Luxembourg easily accessible to investors throughout the continent and from around the world.