GERMANY: BaFin Updates AIFM FAQ’s

Friday November 17 2017

On 15^th November 2017, BaFin updated FAQ’s relating to AIFM.

The updated FAQs included the following:

• Even if the capital management company is not necessarily listed in Annex I, paragraph 2a of the wording AIFM – the companies administrative activities are considered to be primary tasks of a capital management company.
• If an investment stock corporation with variable capital appoints an external capital management company, this external capital management company is responsible for executing general administrative activities and investing and managing the investment.
• With regards to the outsourcing of risk management to companies without permission, Bafin have clarified that this does continue to be possible under the KAGB (Rules on Investment Funds) and that there is a possibility that BaFin will issue a license.
• The licensing requirements correspond to the conditions set out in article 36 of KAGB and in Articles 75 to 82 of the AIFM – VO ( the outsourcing company must have sufficient resources for the outsourcing tasks and the managers must be reliable and have sufficient experience).
• The receipt of information or recommendations of third parties with regard to assets required by the Company for investment decisions is not considered as outsourcing within the meaning of article 36 KAGB
• With regard to real estate investment funds, portfolio management can also be outsourced and the investment decision to buy or sell a property by an outsourcing company can also be taken.

Please click on the above link for more information.