BaFin Circular on Crowdlending

BaFin issued a circular on 9 October 2015 on crowdlending capital raising structures. The circular addresses, inter alia, whether crowdlending structures are subject to a license requirement according to the German Banking Act (Kreditwesengesetz, “KWG”) and whether there is a requirement to publish a prospectus for crowdlending platform operators in accordance with the German Investment Law (Vermögensanlagegesetz, “VermAnlG”). 

BaFin Issues Circular on Depositaries

BaFin issued a circular on 7 October 2015 with regard to the tasks and obligations of a depositary pursuant to chapter 1 section 3 of the German Investment Code (Kapitalanlagegesetzbuch, “KAGB”), replacing the outdated circular 6/2010 on depositary banks as of 2 July 2010. The circular addresses the key importance of the depositary as the controlling authority of the fund management company and discusses individual issues regarding the obligations of a depositary under the KAGB in connection with the Commission Delegated Regulation (EU) No. 231/2013 (“Level II Regulation”). The circular is expected to be subject to further amendments due to the upcoming implementation of EU Directive 2014/91/EU (“UCITS V”) in Germany.

Implementation of MiFID II, Draft Bill Published

The German Federal Ministry of Finance has published a draft bill to implement Directive 2014/65/EU (“MiFID II”) into German law. The draft bill, which is still subject to further consultation, proposes numerous changes and amendments to the German Securities Trading Act (Wertpapierhandelsgesetz, “WpHG”), the German Banking Act (Kreditwesengesetz, “KWG”), the German Stock Exchange Act (Börsengesetz, “BörsG”), the German Insurance Supervision Act (Versicherungsaufsichtsgesetz, “VAG”) and the German Investment Code (Kapitalanlagegesetzbuch, “KAGB”).

Investment Statistics as of 31 August 2015

In October 2015, the German Investment Fund Association BVI issued its latest investment statistics report dated 31 August 2015, giving an overview of the net assets and net sales within the German investment fund and asset management markets. The statistics are broken down by asset class and provider. They provide information on net assets and net inflows of investment funds and assets outside investment funds.