The regulatory environment plays a crucial role in the formation and operation of an SPF. Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), oversees SPF entities to ensure compliance with legal and regulatory requirements. SPF structures must adhere to specific criteria and demonstrate that their activities align with the intended purpose of managing family wealth. Understanding and navigating the regulatory landscape is essential for the proper establishment and ongoing operation of an SPF.