Custodian services

The Luxembourg Financial Action Task Force (FATF) considers that Luxembourg legislation on bearer shares is incompatible with the objectives of the combating money laundering an. With the new Act of 28 July 2014 in effect, bearer shares will now be held by a professional depositary that will be subject to obligations on combating money laundering and financing terrorism. The lay applies to bearer shares of limited companies and partnerships limited by shares.

Chartered accountants are among the persons who can act as a depositary.

The depositary must keep a bearer shares register. In particular, this register indicates the name of each shareholder, the number of shares held, and a record of transfers or sales made.

Sales of bearer shares are enforceable by a transfer note in the bearer share register.

Bearer shares may not confer any rights (in particular, the right to participate or vote in general meetings or to receive dividends) unless such bearer shares are deposited with a depositary. Bearer shares that are not deposited do not confer any rights.

Bearer shares holders are responsible for informing the depositary of every sale or transfer of shares in order to update the register.