| INDEX | 8 |
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| LIST OF DEFINITIONS AND INTERNET LINKS | 16 |
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| CHAPTER 1 - PREFACE | 24 |
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| CHAPTER 2 - CATEGORISATION OF FOREIGN FUNDS | 26 |
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| 2.1 Investment funds under the Investment Act | 26 |
| 2.1.1 UCITS | 26 |
| 2.1.2 Non-UCITS | 29 |
| 2.2 Fund structures outside the Investment Act | 39 |
| 2.2.1 Private equity | 40 |
| 2.2.2 Debt instruments | 40 |
| 2.2.3 Certificates | 41 |
| 2.2.4 Collective investment management | 41 |
| CHAPTER 3 - PRIVATE PLACEMENTS | 50 |
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| 3.1 Definitions | 50 |
| 3.1.1 Public distribution, §2 para (11) sentence 1 InvG | 50 |
| 3.1.2 Private placement | 53 |
| 3.2 The internet | 58 |
| 3.2.1 Websites in the German language | 58 |
| 3.2.2 Websites in other languages | 59 |
| 3.2.3 Websites intended for distribution of foreign investment funds in Germany | 59 |
| 3.2.4 References to websites in printed marketing material | 60 |
| 3.3 Applicable rules | 60 |
| 3.3.1 Hedge funds and funds of hedge funds | 61 |
| 3.3.2 Contract law | 62 |
| 3.3.3 Consumer protection | 62 |
| 3.3.4 Rescission rights (Anfechtungsrechte) | 64 |
| 3.3.5 Tort | 64 |
| 3.4 Preparation of private placement information material | 66 |
| CHAPTER 4 - PUBLIC DISTRIBUTION OF UCITS | 68 |
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| 4.1 UCITS III notification procedure | 68 |
| 4.1.1 Notification to the BaFin | 69 |
| 4.1.2 Umbrella funds and unit classes | 69 |
| 4.1.3 Incomplete notification | 70 |
| 4.1.4 Complete notification and two months waiting period | 71 |
| 4.1.5 Prohibition of public marketing before end of the waiting period | 72 |
| 4.2 Paying and information agent in Germany | 73 |
| 4.2.1 Paying agent | 73 |
| 4.2.2 Information agent | 74 |
| 4.2.3 Standardised services | 75 |
| 4.2.4 Termination | 75 |
| 4.2.5 Disclosure | 75 |
| 4.3 Notification letter | 76 |
| 4.3.1 Part A: Harmonised part of the notification letter | 77 |
| 4.3.2 Required documentation | 80 |
| 4.3.3 General | 94 |
| 4.3.4 PART B: Non-harmonised part of the notification letter | 99 |
| 4.4 Reporting, information and fee requirements subsequent to UCITS notification | 103 |
| 4.4.1 Updating the BaFin | 103 |
| 4.4.2 Informing investors | 106 |
| 4.4.3 Annual fees subsequent to notification | 109 |
| 4.5 Termination of public distribution of UCITS | 110 |
| 4.5.1 Termination by the Investment Management Company | 110 |
| 4.5.2 Prohibition of further public distribution by the BaFin | 112 |
| CHAPTER 5 - DISTRIBUTION CHANNELS AND LICENSING REQUIREMENTS | 118 |
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| 5.1 Distribution through German service providers | 118 |
| 5.2 Licence requirements for foreign distributors | 119 |
| 5.2.1 UCITS Management Company | 119 |
| 5.2.2 Securities trading firms passported under the EU banking regulations | 125 |
| 5.2.3 Distributors without EU passport | 128 |
| CHAPTER 6 - DISTRIBUTION AND MARKETING RULES | 132 |
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| 6.1 General rules for public distribution of fund units pursuant to the InvG | 132 |
| 6.1.1 Provision of documents before conclusion of a sales contract | 132 |
| 6.2 Marketing rules for investment funds | 134 |
| 6.2.1 Most important sources of marketing rules | 134 |
| 6.2.2 Overview of important rules for marketing | 135 |
| 6.2.3 Prohibition of marketing by the BaFin | 142 |
| 6.2.4 Prohibition of public distribution by the BaFin | 142 |
| 6.3 Tax transparency rules | 143 |
| 6.3.1 Tax transparent and non transparent investment funds | 143 |
| 6.3.2 Tax transparency requirements | 144 |
| 6.3.3 Taxation of non-transparent funds | 146 |
| 6.3.4 Relevance of tax transparency | 147 |
| CHAPTER 7 - INVESTOR PROTECTION | 148 |
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| 7.1 Rights of revocation | 148 |
| 7.1.1 §126 InvG – Doorstep sales | 148 |
| 7.1.2 Other rights of revocation and rescission | 152 |
| 7.2 Consumer information | 152 |
| 7.2.1 Applicability of German consumer protection law | 152 |
| 7.2.2 Distance contracts | 154 |
| 7.2.3 Electronic business dealings | 158 |
| 7.3 Prospectus liability | 160 |
| 7.3.1 §127 InvG | 160 |
| 7.3.2 §44 Stock Exchange Act | 164 |
| 7.3.3 Civil law | 165 |
| CHAPTER 8 - LISTING ON A GERMAN STOCK EXCHANGE | 174 |
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| 8.1 Exchange Traded Funds | 174 |
| 8.2 Admission to the FSE Regulated Market | 175 |
| 8.2.1 The Regulated Market and its segments | 175 |
| 8.2.2 Main admission requirements | 175 |
| 8.2.3 Applications | 178 |
| 8.3 Trading | 182 |
| 8.4 Clearing and settlement | 183 |
| 8.5 Ongoing obligations following the listing | 184 |
| 8.5.1 General Standard | 184 |
| 8.6 Revocation of admission | 194 |
| 8.6.1 Upon application by the Investment Company (delisting) | 194 |
| 8.6.2 Revocation of admission ex officio by the Management Board | 195 |
| 8.7 Fees | 196 |
| 8.8 Inclusion of ETFs into the Regulated Market | 196 |
| 8.9 Inclusion of ETFs into the Regulated Unofficial Market | 198 |