Luxflag listing procedures

Listing Procedures

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 €3,000 per entity plus EUR 500 for the third and subsequent sub-funds up to a maximum of 5 sub-funds 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.

	Criteria LuxFLAG has reviewed its Eligibility criteria in the course of 2009. In order to obtain a LuxFLAG Microfinance Label a fund must comply with a number of criteria set by LuxFLAG. The principle conditions (1) are that the MIV must:
	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;
	Seek a return on investment;
	Comply with some legal and governance criteria.
	A full description of the criteria is available in the application criteria document. LuxFLAG reserves the right to independently assess and evaluate the above mentioned criteria.
	(1) From 2011, LuxFLAG will take into consideration the MIVs’ social objectives
	New social criterion Throughout 2009, LuxFLAG studied the possibility to add a social criterion to the existing eligibility criteria for the Microfinance Label. Candidates for the 2010 edition of the Labels will be required to provide LuxFLAG with information on the “social performance” of their MIV. However, fulfilling this specific criterion will not be mandatory for obtaining the LuxFLAG Microfinance Label in 2010. This criterion will become mandatory for applications in 2011.
	Procedures 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 Microfinance Label application form completed and duly signed;
	The prospectus of the investment vehicle;
	The Statutes or Articles of Incorporation of the investment vehicle;
	The latest audited annual financial statements (including the report of the auditor)
	The unaudited semi-annual financial statements (if more recent than the annual financial statements);
	A full list of assets of 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 Microfinance rating agency recognised by LuxFLAG.

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