Germany’s New Investment Funds Law Goes Beyond the EU AIFMD: What Foreign-Based Alternative Investment Funds and Their Managers Should Know

The past few years have seen momentous changes in the rules and regulations that govern the investment industry in the European Union (EU) as a whole and Germany as one of its member states. The regulatory landscape has changed significantly at both levels. Certain other modifications to existing German legal codifications like the Securities Prospectus Act (Wertpapierprospektgesetz) in July 2012 and the introduction of a new Asset Investment Code (Vermögensanlagegesetz) in June 2012 notwithstanding, the main change has been the adoption of the new, so-called Capital Investment Act (Kapitalanlagegesetzbuch, or KAGB)¹ in July 2013.

The KAGB implements the EU ...