Lombard Odier Darier Hentsch is to offer investors access to Luxembourg-based funds that are already UCITS III compliant, according to a sta...

Lombard Odier Darier Hentsch is to offer investors access to Luxembourg-based funds that are already UCITS III compliant, according to a statement from the bank. The company has chosen to maintain its model of self managed SICAVs over forming a Luxembourg-based management company and has signed an agreement with the Director’s Office in Luxembourg to facilitate this—the first of its kind.

The Director’s Office, founded by Patrick Zurstrassen, a well known investment specialist in Luxembourg, will provide both operational and administrative help to fund promoters to ensure that compliance with the UCITS directive is achieved.

The partnership has been approved by the CSSF, the Luxembourg authority, and will also be backed by Lombard Odier’s custodian bank in Luxembourg, Crédit Agricole Investor Services. The agreement makes Lombard Odier one of the first fund providers to be UCITS compliant and could serve as a model for other fund providers.

“This agreement will allow us to offer our European investors a broad spectrum of products that meet the very highest governanace standards. The quality of our products, coupled with Mr Zurstrassen’s skills open up promising new avenues for us in Europe," said Patrick Odier, managing partner of Lombard Odier, in a statement.

UCITS III comprises two directives. The first is aimed primarily at extending the scope of the investment rules and modernizing the management techniques used by pan-European funds. The second places greater demands on fund promoters with regard to capital adequacy and management (the idea of "substance").

The transition period during which pan-European fund promoters must adapt their structures to comply with the latter directive has been shortened by the Committee of European Securities Regulators and will now end on April 30, 2006.