BaFin Decision Regarding the Duties of Management Companies in Respect to Externally Managed Investment Companies

After a long consultation period, BaFin published its new interpretative decision on 21 December 2017 regarding the duties of management companies in respect to externally managed investment companies (Auslegungsentscheidung zu den Tätigkeiten einer Kapitalverwaltungsgesellschaft und der von ihr extern verwalteten AIF-Investmentgesellschaft).

The interpretative decision was published by BaFin to provide further interpretation and guidance in respect to the question whether a management company of a German investment company, i.e. a German investment limited partnership (Investmentkommanditgesellschaft) or a German investment limited company (Investmentaktiengesellschaft) acts in respect to specific tasks either on behalf of the investment company or in the name of the management company for account of the investment company. Such distinction can from our perspective also be of relevance for asset managers acting as delegate of the management company.

As a consequence of the corporate incorporation under German law, a German investment company has own legal capacity. Therefore, the interpretative decision gives also guidance when an investment company acts on its own behalf (i.e. in its own name) or when it has to be represented by its management company.

Read the interpretative decision (in German)

BaFin Introduces New Derivative Reporting

For the reporting year of 2018, BaFin has issued new requirements for derivative reports for UCITS subject to Sec. 38 of the German Derivative Ordinance (Derivateverordnung).

Key changes for management companies of UCITS investment funds are additional reporting requirements in respect of the BaFin ID and of the average leverage amount of all relevant UCITS pursuant to the cross method. As a consequence, all management companies have to determine the cross leverage amount for the relevant UCITS even if the relevant UCITS previously determined its leverage amount in accordance with the commitment approach pursuant to Art. 42 of Directive 2010/43/EU.

The updated instructions by BaFin as well as the relevant reporting template will be provided by BaFin upon request or can be downloaded by members of the BVI:

Read the updated instructions. (login required)

View the relevant reporting template. (login required)

Latest Investment Statistics for Germany

In Feburary 2018, the German Investment Fund Association BVI has issued its latest investment statistics report dated 05 February 2018, 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 statistics in full.