Regulatory Compliance - About us

Lux Capital values its reputation as a good corporate citizen, and strives to implement and comply with the highest standards of corporate governance. We are determined to build sound business operations on the basis of transparency, integrity, accountability and ethics. With respect to raising capital and investments for start-ups and SMEs in Canada, Lux Capital has adopted the highest standards of regulatory compliance and inacts within the rules and regulations of the Securities Act 2004 of the Luxembourg CSSF, as well as the Canadian Securities Administrators (CSA), the umbrella organization of Canada’s provincial and territorial securities regulators, whose objective is to improve, coordinate and harmonize regulation of the Canadian capital markets.

Registration

Lux Capital Corporation is a limited liability company with its principal place of business at 212 King Street, M5H 1K5 Toronto, Canada, registered at the Ontario Company Registry under number 002531596.

Accountability

We ensure that we comply with the latest global accounting standards and the regulatory and statutory reporting requirements of the Luxembourg authorities. We provide timely and accurate accounting reports to our institutional investors and all other stakeholders. We apply only methodologies that are approved by external auditors and actuaries. All administrative, accounting and auditing operations are undertaken by independent accredited firms. All monetary transactions are conducted by top rated banks, clearing, and settlement institutions.

We strive to be fully accountable for results. We do not defer any of the potential risk to our investors but only to our shareholders of the investment companies. Net earnings for shareholders are always and solely after deduction of full repayment of principal and interest to the bondholders. Nor do we claim a share upon greater investment success. Through this, not only is our accountability guaranteed, but also our integrity.

Audit

Our investment vehicles in Luxembourg have commissioned an external auditor who reports to the Shareholders. The mission, scope of work, authority and responsibilities are laid down in the Audit Charter, which is in conformance with the IIA standards and endorsed by the Board and approved by the external auditor. The external auditor provides an independent assessment of the design and effectiveness of internal controls over the risks to our business performance and provides specific recommendations for improving the governance, risk and control framework. The external auditor performs the audit on the consolidated financial statements and the statutory financial statements. As part of the audit engagement, the external auditor issues a management letter to the Board in which (potential) improvements in the adequacy and effectiveness of the governance, risk and control framework are being recommended. The Board will make recommendations to the General Meeting once every five years as to the appointment of the external auditor.

The internal auditor undertakes an assessment and reports on significant current and emerging business performance issues and risks, the administrative framework, internal control systems, and the regulatory compliance processes. The internal auditor submits periodic reports, with key performance indicators (including audit plan realization and implementation of recommendations) to the Board. This includes a semi-annual report on the adequacy and effectiveness of systems of control

Data Protection

All personal data of prospective buyers and bondholders contained in any document, in any format, and any further personal data received and collected in the course of the relationship with any of the Luxemburg investment vehicles and of its service providers may be collected, recorded, stored, adapted, transferred or otherwise processed and used (“processed”) by us and other directly or indirectly affiliated companies and any of its service providers. Such data shall be processed for the purposes of administration, accounting, compliance and recording of the business relationship. To this end, data may be transferred to companies appointed to support the business activities of our Luxembourg investment vehicles..

Any personal data relating to natural persons will be processed in compliance with the applicable Luxembourg laws and regulations relating to the protection of persons towards the treatment of personal data. We may disclose personal data to its service providers or if required to do so by force of law or regulatory authorities. Bondholders, who are natural persons, will, upon written request, be given access to their own personal data held in our administrations. Such bondholders may request in writing the rectification of and our Luxembourg investment vehicles will upon written request, rectify, personal data. No personal data shall be held by us for longer than necessary with regards to the purpose of the business relationship.

Anti-Money Laundering

Pursuant to the applicable Luxembourg laws and regulations relating to the prevention of money laundering and financing of terrorism obligations have been imposed on all professionals of the financial sector to prevent the use of securitization undertakings for money laundering purposes. Within this context a procedure for the identification of bondholders has been imposed. Namely, the Subscription Agreement of a prospective bondholder not being a natural person must be accompanied, where applicable, by a copy of its articles of association or constitutive documents and a certified extract from the relevant commercial register and identification on its authorized signatories and economic beneficiaries, and any other documentation that may be requested.

Such identification procedure must be complied with in the case of direct subscriptions and in the case of subscriptions received from any intermediary resident in a country which does not impose on such intermediary an obligation to identify bondholders equivalent to that required under the laws of Luxembourg for the prevention of money laundering. Failure to provide proper documentation may result in a refusal of the issuing of bonds or the withholding of redemption proceeds.

It is generally accepted that professionals of the financial sector resident in a country which has ratified the recommendations of the FATF are deemed to be intermediaries having an identification obligation equivalent to that required under the applicable laws of Luxembourg. The complete updated list of countries having ratified the recommendations of the FATF is available on www.fatf-gafi.org. Other guidelines, rules and recommendations may be taken into account, as the case may be. Any information provided in this context is collected for anti-money laundering and anti-financing of terrorism compliance purposes only.