BaFin Publishes Interpretative Notice Regarding the Qualification of Tokens and Cryptocurrencies Offered Through Initial Coin Offerings to Investors

BaFin published its new interpretative notice on 20 February regarding the regulatory qualification of tokens and cryptocurrencies offered through initial coin offerings to investors as financial instruments.

In its interpretative notice, BaFin highlights the importance of the correct classification of tokens and cryptocurrencies to qualify on a case by case basis either as:

(i) a “financial instrument” under MiFID II and the German Securities Act (Wertpapierhandelsgesetz)

(ii) a “security” pursuant to the German Securities Prospectus Act (Wertpapierprospektgesetz)

(iii) a “capital investment” under the German Capital Investments Act (Vermögensanlagengesetz)

(iv) even a unit of an investment fund under the German Capital Investment Code (Kapitalanlagegesetzbuch).

As a consequence, the relevant qualification leads to different obligations and requirements (e.g. licensing requirements) for the issuer under one of the aforementioned German Acts.

Read the interpretative note (in German).

BaFin Issues Sample Templates for Fee and Costs Clauses for Open-Ended Funds

BaFin has issued new sample templates for fee and costs clauses for open-ended mutual funds as well as for real-estate funds for further consultation. The consultation will end on the 27th of April 2018. The new sample templates shall replace the sample templates dated 4th September 2012.

Read the updated templates by BaFin for consultation (in German).

Latest Investment Fund Statistics for Germany

The German Investment Fund Association, BVI, has issued its latest investment statistics report dated 12 March 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 investment statistics.