Luxembourg regulator liquidates Madoff fund

BRUSSELS, May 13 (Reuters) - Luxembourg's financial market watchdog said on Wednesday it had liquidated the Luxembourg Investment Fund, which was exposed to the Madoff fraud.

The CSSF, which last month took the same action for the Luxalpha fund and the Herald fund, withdrew the fund from its official list in March.

The regulator said liquidators would have to inform investors and creditors of the liquidation process at least once a year, with a first meeting to be held before the end of November.

'The judgment notes the carriers of shares of Luxembourg Investment Fund are to be regarded as shareholders who will share the profit of liquidation,' the regulator said in its statement.

The fund's depositary bank is the Luxembourg branch of Swiss bank UBS.

Investor activist group Deminor has filed legal complaints against both UBS and HSBC for allegedly neglecting clients who invested in Madoff-related products.

Wall Street financier Bernard Madoff is awaiting sentencing for a purported $65 billion fraud that drew in new investors to pay off existing ones.

(Reporting by Anne Jolis; Editing by Andrew Callus) Keywords: MADOFF LUXEMBOURG ([e-mail]; [phone]; Reuters messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.