Obtain approval for changes to the investment terms and conditions of investment funds Unfortunately this specification of service has not yet been completely translated.
If you, as a capital management company, adjust the investment conditions of your investment fund, you must have the amended investment conditions approved by the Federal Financial Supervisory Authority (BaFin).
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, as a capital management company (KVG), investment stock corporation or open-ended investment limited partnership, adjust the investment terms and conditions of your investment fund, you must have the amended investment terms and conditions approved by the German Federal Financial Supervisory Authority (BaFin).
The investment terms and conditions regulate, among other things:
- the relationship between you as the 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
Only when the amended Terms of Investment have been approved by BaFin may you attach them to your Sales Prospectus. In addition, you must make them available to the public on your website in the version applicable at the time.
- Copy of the investment conditions
- Copy of the articles of association
- Copy of the memorandum and articles of association, if applicable
Online procedure possible: no
Written form required: yes
Personal appearance required: no
You may only apply for authorisation if your management company is
- a management company authorised to manage the type of investment fund concerned, or
- it is an EU UCITS management company that has been authorised by the competent authorities of its home Member State to manage UCITS investment assets that it intends to manage in Germany
§ 96 II, § 117 V, § 163 KAGB
§ 96 Absatz 2 Kapitalanlagegesetzbuch (KAGB)
§ 117 Absatz 5 Kapitalanlagegesetzbuch (KAGB)
§§ 162 bis 163 Kapitalanlagegesetzbuch (KAGB)
To request approval for changes to the investment terms of a mutual fund, follow these steps:
- Draw up an informal cover letter in which you request the amendment approval.
- Send the application, including the amended investment terms and conditions, to BaFin by post.
- 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 amendments to the submitted Terms and Conditions of Investment if they do not comply with 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.
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