GERMANY: BaFin Publish Guidance Notice on the notification procedure pursuant to section 330 German Capital Investment Code

Wednesday September 17 2014

The German Federal Financial Supervisory Authority (BaFin) has published a Guidance note elaborating on the requirements for foreign alternative investment fund (AIF) management companies intending to distribute shares or units in foreign AIF or EU-AIF managed by them to professional and semi-professional investors within the Federal Republic of Germany. At present, foreign AIF management companies must comply with the notification procedure pursuant to section 330 of the German Capital Investment Code.

The Guidance note sets out information regarding the submission of notifications, the time limits for the assessment of notifications, the content of the notification letter and the supporting documents to be submitted with the notification letter. In addition thereto, particularities of notifications regarding umbrella funds as well as additional requirements, which apply to notifications regarding feeder AIF and to notifications in case of an intended distribution to semi-professional clients, are addressed.

BaFin has stated that the notification letter may be either in German or in English. In addition, emphasis has been placed on the duties of the management company (e.g. to submit to the BaFin the annual report of the notified AIF within 6 months as of the end of each business year, at the latest, to notify the BaFin of any material changes, to provide information on its business activities upon the BaFin`s request and to comply with certain reporting and information requirements). These are to be complied with until all investors in the respective AIF, who are resident in Germany, have ended their investments.

The notification procedure pursuant to section 330 KAGB is only to be complied with until such date as is specified in the delegated act of the European Commission to be issued in accordance with article 66 sub-section 3 and article 67 sub-section 6 of the Alternative Investment Fund Managers Directive (AIFMD). This means that the notification procedure pursuant to section 330 KAGB will no longer apply with the entry into force of the harmonised European passport regime for non-EU AIF management companies pursuant to the AIFMD.

Click on the above link for the Guidance note (Only available in German)