 |
Criteria
|
In order to obtain a LuxFLAG Microfinance Label a
fund must comply with a number of criteria set by LuxFLAG. The principle
conditions are that the MIV must:
be subject to supervision equivalent to that in EU member states;
have a microfinance portfolio corresponding to at least 50% of
the MIV's total assets;
have at least 25% of its microfinance portfolio invested in MFIs
rated by a microfinance rating agency recognised by LuxFLAG.
have a commercial objective.
A full description of the criteria are available in
the Application
Criteria document.
|
|
Procedure |
The MIV must complete and sign an Application
Form and return it to LuxFLAG together with a series of addenda
in hard copy or electronic format. These documents are:
the prospectus of the investment vehicle;
the
Statutes or Articles of Incorporation;
the
latest audited financial statements;
the
unaudited semi-annual financial statements, if more recent;
a
full list of assets in the portfolio (if not included in the financial
statements) together with evidence that at least 50% of the portfolio
is invested in microfinance and that at least 25% of
the microfinance portfolio is invested in MFIs
rated by a rating agency recognised by LuxFLAG.
|
|
Process |
LuxFLAG accepts and reviews applications on a first-come,
first-served basis.
Applicants will receive an acknowledgement by e-mail within ten
business days of receipt. Applications will be reviewed and any
additional information solicited if necessary. When the application
is complete, it is presented to the Eligibility Committee of LuxFLAG
for analysis.
Based on this analysis, the Board of LuxFLAG will approve or reject
the application.
If the application is complete and accurate, the process should
take no longer than one month. A written notification of the decision
will then be sent to the applicant.
Successful applicants will be required to pay a fee of €2,000 and
to sign a set of Terms and Conditions relating to the use of the
LuxFLAG label.
The Label is granted for a period of one year and must be renewed.
To this end LuxFLAG will issue the MIV with an invitation to submit
an updated application document before the expiry of its Label.
|
