The implementation of the AIFM Directive in Germany – What third country managers should know

11 July 2013

While the AIFMD aims at creating a harmonised regulatory framework and an internal market for the managers of AIFs, the German legislator implemented the AIFMD in the new German Capital Investment Act, creating a cohesive set of rules for all open and closed-end funds and their managers in Germany.

The new German Capital Investment Act (Kapitalanlagegesetzbuch, “KAGB”)  enters into force on July 22, 2013. The KAGB will replace the Investment Act (Investmentgesetz, “InvG”) and is supposed to regulate, for the first time, the entire German investment law.

Unlike other European legislators such as the Luxembourgian, the German one goes beyond the goals of the AIFMD and provides for a comprehensive regulatory framework for all domestic fund products. In addition to the KAGB, the Commission’s Delegated Regulation (EU) No 231/2013 of December 19, 2012 applies. As a Level 2 measure it supplements the AIFM Directive. Further Level 2 measures will become effective by July 22, 2013, which is the latest date on which the Member States must have implemented the AIFMD.

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