New Investment Ordinance Enters Into Force

The revised Investment Ordinance (“Anlageverordnung” – “AnlV”) entered into force on 7 March 2015 after being adopted by the German Federal Cabinet on 25 February 2015. The Investment Ordinance is of particular importance for insurance companies, pension funds and professional pension funds (“VAG Investors”) as they are subject to the investment restrictions set out in the Investment Ordinance. It is also of relevance for fund sponsors setting up fund structures with potential VAG Investors. It is expected that the German Financial Supervisory Authority, BaFin, will update its circular 4/2011 on the provisions of the Investment Ordinance in due course. 

Read the Dechert OnPoint: Germany's Amended Investment Ordinance

Germany Clears the Way for Solvency II

The Federal Council of Germany (“Bundesrat”) passed the revised Insurance Supervision Act (“Versicherungsaufsichtsgesetz” – “VAG”) on 6 March 2015 which will implement the EU Solvency II Directive in Germany. The new legislation will enter into force on 1 January 2016 and enforce a market-consistent risk-model for insurers. Among others, the legislation contains provisions governing the valuation of assets and liabilities and lays down capital requirements for own funds of insurers. It also provides for new governance requirements and reporting regimes.

Read the full legislation (in German)

BaFin Postpones (Annex IV) Reporting Date for AIFs and AIFMs

The German Financial Supervisory Authority, BaFin, issued an update on 4 February 2015 to its Guidance Notice on reporting obligations for both AIF management companies and individual AIFs pursuant to section 35 (1), (2) and (4) of the German Investment Code (“Kapitalanlagegesetzbuch” – “KAGB”), see issue 2 of the Investment Funds Update Europe. On 5 March 2015, the BaFin postponed the first reporting date due to technical issues with the ESMA system. The first reporting date is now expected to be in May 2015.

Read the updated Guidance Notice (in German)

German Investment Fund Statistics

In March 2015, the German Investment Fund Association BVI issued its latest investment statistics report as of 31 January 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.

View the full statistics