Adopted by the German Federal Government at the end of February, the long-awaited amendments to the Regulation on the Investment of Restricted Assets of Insurance Undertakings (Anlageverordnung ("AnlV")) and the Pension Fund Capital Regulation were published in the Federal Gazette on 6 March 2015. The amendments entered into force on 7 March 2015.

reading version of the AnlV showing the amendments made to the previous version of the AnlV (as accessible on the homepage of the Federal Financial Supervisory Authority) can be downloaded here.

The AnlV is of major importance for asset managers, their funds as well as for the insurance companies themselves. It is the key set of rules for investments to be made by insurance undertakings. It determines in which assets and to what extent the restricted assets of an insurance undertaking may be invested in. In this context, the AnlV introduces significant innovations such as

  • Extended and facilitated opportunities to invest in loans to undertakings (section 2 (1) no. 4 c) AnlV) – in particular in the infrastructure sector – and equity financing of undertakings (section 2 (1) no. 13 b) aa) AnlV). For infrastructure loans and other loans with ratings below investment grade a new quota of 5% of the restricted assets will apply.
  • As before, restricted assets may be invested in open-ended special funds. The extent to which units or shares of a special fund may be purchased depends on which assets are held by such special fund. Special AIFs with fixed investment conditions in the meaning of section 284 German Capital Investment Code (Kapitalanlagegesetzbuch ("KAGB")) remain eligible for the restricted assets to the same extent as before (section 2 (1) no. 16 AnlV).
  • General eligibility of "other" AIFs which are not eligible as open-ended Special AIF with fixed investment conditions or other asset categories may be acquired under the newly introduced so-called "AI-Quota" of 7.5 % of the restricted assets (sections 2 (1) no. 17, 3 (2) no. 2 AnlV).
  • Funds managed by "small" management companies are eligible to a large extent, e.g. investments in indirect investments in enterprises, real estate or other alternative assets (sections 2 (1) no. 13, 14, and 17 AnlV).
  • The provisions on direct and indirect investments in real estate as well as private equity investments remain largely unchanged. The acquisition of open-ended public real estate funds is in general not permitted, whereas the acquisition of closed-ended public real estate funds is possible.