Compliance - Lux Global Investments Corp

Our organization strives to implement and comply with the highest standards of corporate governance and is determined to build sound business operations on the basis of transparency, integrity, accountability and ethics herewith preserving our reputation as a good corporate citizen. We endeavour to comply with the highest standards of regulatory compliance and act within the rules and regulations of the applicable securities acts and corporate laws in the jurisdictions where we offer our bonds

Qualified Investors

Investment in our bonds is only suitable for prospective investors who have sufficient knowledge and experience to make a meaningful evaluation of the bonds, the merits and risks of investing in the bonds and the information contained or incorporated by reference in the Offering Memorandum or any supplement thereto. Qualified investors are considered to have access to, and knowledge of, appropriate analytical tools and factual data to evaluate, in the context of its particular financial situation, an investment in the bonds and the impact the bonds will have on ithe investor's overall investment portfolio. Prospective investors must have sufficient financial resources and liquidity to bear all of the risks of an investment in the bonds. Qualified investors must fully understand the terms and conditions that apply to the bonds and be familiar with the behavior of financial markets and be able to evaluate (either alone or with the help of a professional adviser) possible risk/return scenarios and other factors that may affect the investment and the ability to bear the applicable risks.

Selling Restrictions

Any information supplied in connection with the offering of our bonds constitutes an offer or invitation by or on behalf of the Issuer to any person to subscribe to, or otherwise acquire, any bonds. No person is or has been authorized by Lux Global Investment Corporation to give any information or to make any representation not contained in or not consistent with the Offering Memorandum or any other information supplied in connection with the offering and/or admission to trading of the bonds and, if given or made, such information or representation must not be relied upon as having been authorized by us.

The bonds have not been and will not be registered under the Securities Act or the securities laws of any of the U.S. States and Canada. Bonds may not be offered, sold or delivered directly or indirectly in the U.S. or to or for the account or benefit of any U.S. Person. Any re-offer or resale of any Bonds in the U.S. or to U.S. Persons may constitute a violation of U.S. law. Applicants will be required to certify that they are not “U.S. Persons”. The Issuer will not be registered under the United States Investment Company Act of 1940, as amended. Bondholders are required to notify the Issuer of any change in their status as (non-) U.S. Person.

The Offering Memorandum does not constitute an offer to sell or the solicitation of an offer to buy the bonds in any jurisdiction to any person to whom it is unlawful to make the offer or solicitation in such jurisdiction. The distribution of the Offering Memorandum and the offer or sale or delivery of bonds may be restricted by law in certain jurisdictions. Lux Global Investment Corporation does not represent that the Offering Memorandum may be lawfully distributed, or that the bonds may be lawfully offered or sold, in compliance with any applicable registration or other requirements in any such jurisdiction, or pursuant to an exemption available thereunder, or assume any responsibility for facilitating any such distribution or offering. In particular, except as indicated in the Offering Memorandum, no action has been taken by us which is intended to permit a private offering or sale of the bonds or the distribution of the Offering Memorandum in any jurisdiction where action for that purpose is required. Accordingly, no bonds may be offered or sold, directly or indirectly, and neither the Offering Memorandum nor any advertisement or other offering material may be distributed or published in any jurisdiction, except under circumstances that will result in compliance with any applicable laws and regulations. Persons into whose possession the Offering Memorandum or any bonds may come must inform themselves about, and observe any such restrictions on the distribution of the Offering Memorandum and the offering and sale of bonds. In particular, there are restrictions on the distribution of the Offering Memorandum and the offer or sale of bonds in the United States, Canada and the European Economic Area and Switzerland.

Anti Money Laundering

Pursuant to the applicable 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.

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 Lux Global Investment Corproation or any 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 commisioned to support our business activities like accounting firms, law firms, auditors etc..

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. Lux Global Investment Corporation 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 we will, upon written request, rectify, personal data. No personal data shall be held by us for longer than necessary with regard to the purpose of the business relationship.

Indepedent Audit

Lux Global Investment Corporation has commissioned an external auditor, reporting 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 the assessment and reporting on significant current and emerging business performance issues and risks, the administrative framework, internal control systems and 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.

True Securitization

Lux Eco Securities has structured its bonds in such way that the principal capital is collateralized with income-producing assets with a fast accelerating asset value and a significant upside value potential. Most of these assets are about to make a major breakthrough in global markets as we in fact established supplier partnerships with multinationals.In some occasions these assets are already targets for acquisition or qualify for IPO's. We acquire only assets situated in countries with highly developed environmental standards, innovative regulatory framework, sophistcated legal systems and strong contract enforcement standards, Investments are secured by high quality assets with a value of several mutiples of the invested bond principal.

Additional collateral is provided through securitiztion of the committed revenue streams, mostly originated from high creditworthy multinationals and on basis of multi-year off-take contracts as well as collateralized financial securities are receivables, letters of credit, state export guarantees, bank guarantees, credit insurance and the cash positions held. In most occassions additional collateral is provided in the format of state subsidies, grants and tax-incentives as well as intangible assets like the patents, icenses, etc.

The aggreate collateral value is therfore always no less than 100% of the equivalent face value of the bond principal. The assets remain throughout the whole investment period in a dedicated legal structure (compartment) under control of an independent security trustee to ensure no other creditors but the investors have a claim on them and to safeguard that the proceeds are utilized with first priority to reimburse the principal and pay interest obligation to the bondholders.