Luxembourg Parliament adopted the Law on Specialized Investment Fund (SIF or CIF), which offers a range of new opportunities for investors, including a broader understanding of the term «reasonable investor», which now includes both professional and private «well-informed» investors.

The new law replaces the law of 19 July 1991 on collective investment schemes, designed for institutional investors. According to the Association of Luxembourg Fund (ALFI), the law of 1991 was quite successful. As of November 2006, there were 207 institutional funds with a combined capital under management of $ 100 billion U.S. dollars.

According to the Association, all the provisions of the Act of 1991, the present and in the Act, therefore, the legislative framework of existing funds will not disappear. However SIFy offer investors a number of interesting new opportunities for investment policy. Preserving the principle of risk-sharing, but the removal of quantitative investment restrictions, provided that investors would rather «qualified». On the other hand, this requirement provides a number of additional freedoms investors. In particular, there is no need for official verification of the status and financial situation of companies involved in the deployment of assets.