responsibility finder
Schleswig-Holstein

Obtain approval of investment rules for newly established investment funds

Source: Zuständigkeitsfinder Schleswig-Holstein (Linie6PLus)

Service Description

According to the legal definition, an investment fund is an undertaking for collective investment which raises capital from a number of investors in order to invest it along a fixed investment strategy for the benefit of these investors. Operationally active companies outside the financial sector are not considered investment assets.

If you form investment assets as a capital management company (KVG), investment stock corporation or open-ended investment limited partnership, you must have the investment conditions approved by the Federal Financial Supervisory Authority (BaFin).

The investment terms and conditions regulate, among other things:

  • the relationship between you as an asset management company and the investors
  • the name and registered office of your asset management company
  • the principles according to which assets are selected and acquired
  • the ownership structure of investment funds
  • which conditions apply to the redemption and exchange of units or shares
  • whether income from the investment fund is distributed or reinvested
  • the principles according to which sub-investment assets are formed
  • whether and what costs must be paid by investors, e.g. front-end load, management fees, redemption fees

You may only include the Terms of Investment in your sales prospectus once they have been approved by BaFin. In addition, you must make them available to the public on your website in the version applicable at the time.


Process flow

To apply for re-approval of the investment terms of a mutual fund, proceed as follows:

  • Draw up an informal cover letter in which you request the re-approval.
  • Send the application, including the investment terms and conditions, by post to BaFin.
  • After receipt of your documents, BaFin will check whether the information you have provided is complete and, if necessary, request further documents from you. Furthermore, BaFin may request changes to the submitted Terms and Conditions of Investment if they do not meet the legal requirements.
  • If you wish to receive written confirmation from BaFin, you must apply for this separately.
  • You will receive a notification of your application.
  • You will also receive a fee notice. Pay the fees.
Requirements

You may only apply for authorisation if you are

  • a management company authorised to manage the type of investment fund concerned, or
  • you are an EU UCITS management company which has been authorised by the competent authorities of its home Member State to manage UCITS investment assets which it intends to manage in Germany
Which documents are required?
  • Copy of the investment conditions
  • Copy of the articles of association
  • Copy of the memorandum and articles of association, if applicable
What are the fees?
  • for open-ended public investment funds: EUR 2,285
  • for closed-end public investment funds: EUR 4,940
What deadlines do I have to pay attention to?

You do not have to observe any deadlines.

Processing duration

BaFin has 4 weeks to grant the approval.

If the requirements for approval are not met, BaFin will inform you of the reasons within 4 weeks and request any missing or amended information or documents. If BaFin does not meet both deadlines, the approval is automatically deemed granted.

Legal basis
Appeal
  • In the event of a rejection of the investment conditions by BaFin: appeal. Detailed information on how to file an objection can be found in the notice.
  • In the absence of a remedy: administrative court action.
Applications / forms

Forms: no
Online procedure possible: no
Written form required: yes
Personal appearance required: no


Author
Technically approved by

Federal Ministry of Finance

Process flow

To apply for re-approval of the investment terms of a mutual fund, proceed as follows:

  • Draw up an informal cover letter in which you request the re-approval.
  • Send the application, including the investment terms and conditions, by post to BaFin.
  • After receipt of your documents, BaFin will check whether the information you have provided is complete and, if necessary, request further documents from you. Furthermore, BaFin may request changes to the submitted Terms and Conditions of Investment if they do not meet the legal requirements.
  • If you wish to receive written confirmation from BaFin, you must apply for this separately.
  • You will receive a notification of your application.
  • You will also receive a fee notice. Pay the fees.

Requirements

You may only apply for authorisation if you are

  • a management company authorised to manage the type of investment fund concerned, or
  • you are an EU UCITS management company which has been authorised by the competent authorities of its home Member State to manage UCITS investment assets which it intends to manage in Germany

Which documents are required?

  • Copy of the investment conditions
  • Copy of the articles of association
  • Copy of the memorandum and articles of association, if applicable

What are the fees?

  • for open-ended public investment funds: EUR 2,285
  • for closed-end public investment funds: EUR 4,940

What deadlines do I have to pay attention to?

You do not have to observe any deadlines.

Processing duration

BaFin has 4 weeks to grant the approval.

If the requirements for approval are not met, BaFin will inform you of the reasons within 4 weeks and request any missing or amended information or documents. If BaFin does not meet both deadlines, the approval is automatically deemed granted.

Legal basis

Appeal

  • In the event of a rejection of the investment conditions by BaFin: appeal. Detailed information on how to file an objection can be found in the notice.
  • In the absence of a remedy: administrative court action.

Applications / forms

Forms: no
Online procedure possible: no
Written form required: yes
Personal appearance required: no


Author

Technically approved by

Federal Ministry of Finance

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