German Investment

Capital law aims to create a common framework for Fund in Germany the implementation of AIFM directive through the new investment law book (KAGB-E) headache for months many market participants, since the preparation time to enter into force the law from July of this year before the background is quite short, that not all details are known. Now first application letter or result protocols are working groups of the Federal Agency for financial services supervision, contributing significantly to the clarity. Are still drafts or discussion proposals, although they provide a recognisable direction – the planning reliability increase. KAGB-E to create a uniform regulatory framework while for open and closed funds in Germany, which also draws on European standards. To do this, a variety was introduced by new terms and definitions, which applies now to fill it with life, making exact definitions essential.

Introduced or was redefined, for example, the term of the Investment assets, as a collective investment vehicle for the community investment. The Bundesanstalt fur Finanzdienstleistungsaufsicht executes also so in force the Bill to the AIFM-implementation Act on 12 December 2012 let the Federal Government, in a current letter provided that under investment asset in this sense each undertaking for collective investment, from a number of investors collects capital which, in accordance with a defined investment strategy for the benefit of those investors to invest there, is not operationally company outside the financial sector”that is to understand. This negative distinction is interesting especially in the context as the writing of the Bundesanstalt fur Finanzdienstleistungsaufsicht calls quite concrete examples. Then it is the chosen example for the real estate sector in the operation of a property (for example, a hotel or a health care facility) an operational activity. Also project development (design, acquisition, development of real estate and) their sales) operating activities would therefore generally. However, the acquisition, rental, the leasing, management and sale of real estate representing no operational activities”(including we classically understand stock farming Fund), so the German financial supervisory authority. Similar example are named for other asset classes, so in the area of renewable energies.

For the area of closed-end funds, this approach seems logical, especially since the legal form of the chosen form of investment for the acquisition of investor capital for collective investment when assessing the AIFM requirement is largely irrelevant and the closed fund industry is dominated by stock keeping funds because of the form shown above. Because otherwise the Federal Agency for financial services supervision would have to check in the future any form of commercial refinancing of companies according to the AIFM and the implementation Act and assess what would entail a huge effort for both sides. For providers of This should not be considered participation models, which now may not fall under the AIFM directive, carte blanche. You must assert itself in terms of quality compared to the providers will offer the AIFM compliant products. Is strongly recommended to implement the positive aspects – for example, for greater transparency – in the sense of a voluntary commitment to them.