Dechert LLP (JD Supra Germany)
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Corona-Matching-Facility Builds on Well-Established Structures
Corona-Matching-Facility Builds on Well-Established Structures In its recent statement, the German government recognized the innovative power that startups and young technology companies have and how important these companies are for the German economy. As referenced in our previous OnPoint on April 20, 2020, many young German companies and startups may have difficulties meeting the...
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Germany to Tighten Rules on Foreign Investment…Again
Germany’s cabinet has approved draft legislation designed to tighten the country’s foreign investment control (“FDI”) regime. The draft bill pre-dates the coronavirus crisis but comes amid growing fears that non-EU investors will take advantage of depressed valuations to snap up strategically important German companies in the current environment. This will be the third time Germany has amended...
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COVID-19 Coronavirus: German Government Stimulus Package for Private Equity and Venture Capital-financed Companies
Both the German Federal Government and the German Federal States have enacted a variety of new financial support programs aimed at mitigating the economic consequences that the COVID-19 pandemic has on the German economy. Generally, private equity financed companies and start-ups, both VC-financed and bootstrapped, can access the various protective financial programs as amended or newly...
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COVID-19 Coronavirus Business Impact: German Tax Administration Provides COVID-19 Coronavirus Temporary Relief for Investment Restrictions of German and Foreign Investment Funds
The recent volatility in capital markets during the COVID-19 pandemic has created the risk that investment funds may be passively breaching investment restrictions that apply to them under the German Investment Tax Act.
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Impacts of COVID-19 on the Performance of Contracts Under German Law
Key Messages - COVID-19 constitutes a Force Majeure event - if epidemics or pandemics are expressly provided for in the agreement as qualified Force Majeure circumstances and - if acts or orders of the German government including travel restrictions, quarantines or border closures have been issued...
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Covid-19 Coronavirus: Protective Shields to Mitigate Impact for Companies and Employees
An Overview of Measures Enacted or Envisaged by the German Government - The current outbreak of COVID-19 coronavirus, recognized by the World Health Organization as a global pandemic, has already had a material impact on the operations of companies worldwide, and this is expected to continue. Whether in the short or long term, this will likely put significant pressure on the financial...
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Financial Services Quarterly Report - Third Quarter 2019: UCITS and Performance Fees: BaFin’s View and Challenges for Non-German UCITS
BaFin, the German financial regulator, has recently begun to review performance fee calculation clauses in fund documents filed by non-German UCITS for marketing in Germany in a more systematic manner. In a number of instances, BaFin has objected if the performance fee is not calculated according to the principles applied by BaFin to domestic funds. UCITS that are registered, or intend to...
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Reforms of the German Capital Investment Act (Vermögensanlagengesetz) and Implementation of German Provisions of the EU Prospectus Regulation
New provisions of the German Capital Investment Act (Vermögensanlagengesetz – VermAnlG) (the “Act”) relating to crowdfunding will become effective on 21 July 2019. The amendments will have a significant impact on the crowdfunding industry. The benefits are inter alia (i) exemptions from the obligation to publish a prospectus for crowdfunding instruments will also include profit participation...
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Investment Funds Update – Europe: Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 3, 2019: Germany
No-deal Brexit preparations: BaFin criticizes financial entities for missing Brexit preparation with regard to license requirements - As of March 2019, Germany's Federal Financial Supervisory Authority BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) has criticized some banks, insurers and investment firms for not properly preparing to make adequate adjustments to mitigate the risks of...
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Investment Funds Update – Europe: Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 12, 2019: Germany
German Parliament adopts Brexit Transitional Act - The German Parliament (“Bundestag”) adopted by a large majority the so-called Brexit Transitional Act (“Brexit-Übergangsgesetz”) submitted by the Federal Government on January 17, 2019, which will make provision for the agreed two-year transitional period following the UK's planned EU exit at the end of March. The Bill set forth, among other...
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German Antitrust Authority Finds Antitrust Infringement on the Basis of a Data Protection Breach
The German antitrust authority (FCO) has ordered Facebook to stop collecting data outside Facebook’s platform without the user’s “voluntary consent.” The decision breaks new ground because it links data protection and antitrust breaches. While the debate about the interplay between other fields of law, such as data protection, and antitrust is several years old, this is the first decision to...
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Investment Funds Update – Europe: Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 11, 2019: Germany
Law amending Financial Market Laws to Regulation (EU) 2017/2402 and Regulation (EU) No 575/2013 as amended by Regulation (EU) 2017/2401 published in the Federal Law Gazette - The Law amending Financial Market Laws to Regulation (EU) 2017/2402 and Regulation (EU) No 575/2013 as amended by Regulation (EU) 2017/2401, by which different financial market laws have been adapted to EU securitization...
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Investment Funds Update - Europe: Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 10 2018: Germany
German Federal Ministry for Economic Affairs and Energy publishes draft bill implementing MiFID II requirements for investment brokers and advisers regulated under the German Industrial Code - The German Federal Ministry for Economic Affairs and Energy published on 7 November 2018 a draft bill amending the current rules set forth for investment brokers and advisers which are exempted from the...
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Investment Funds Update - Europe: Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 9 2018: Germany
German Federal Ministry of Justice and Consumer Protection published draft bill implementing the Directive (EU) 2017/828 as regards the encouragement of long-term shareholder engagement (“ARUG II”) - The Directive (EU) 2017/828 of May 17, 2017 aims to further enhance shareholder participation in listed companies and to facilitate cross-border information and exercise of shareholder rights. For...
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Investment Funds Update - Europe: Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 8, 2018: Germany
Half-year figures for Germany: Investment funds raise €51 billion by August - The German Investment Fund Association BVI issued its half-year figures report on 9 August 2018. The first half of 2018 saw investment funds in Germany record net inflows of €50.7 billion. These inflows were for the most part generated by open-ended special funds, with €39.4 billion. Open-ended retail funds brought in €
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Germany: Foreign Investments under Increased Scrutiny
The German government opposes two high-profile acquisitions by foreign investors as it plans to tighten foreign investment control laws. Key Takeaways: In July and August 2018 the German government opposed two high-profile acquisitions of German companies by non-EU/EFTA investors due to national security concerns....
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Investment Funds Update - Europe: Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles. Issue 7, 2018 - Germany
BMF starts consultation of tax circular on investment tax act with associations - The BMF (Federal Ministry of Finance) sent an updated draft tax circular on 15 June 2018 to industry associations. The updated draft includes, inter alia, statements on securities lending, on umbrella mutual funds and self-declarations, and on the tax requirements of an (tax transparent) investment fund.
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Investment Funds Update Europe: Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 6, 2018: Germany
European banking and securities authorities published guidelines on the assessment of the suitability of members of the management body and key function holders - ESMA and EBA published joint guidelines regarding the suitability of members of the management body of credit institutions, investment firms, financial holding companies and mixed financial holding companies on 21 March 2018....
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Is your Fund Documentation ready for the German Investment Tax Reform? – Transposition Deadline 30 June 2018 to be observed
At the beginning of 2018, a new German investment taxation regime entered into force (German Investment Tax Reform 2018). Under the new law, a new intransparent taxation regime for mutual investment vehicles and their investors has been established. For institutional investors, the previous semi-transparent taxation regime remains in force, but substantial modifications have been made. However,...
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Investment Funds Update Europe: Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 5, 2018: Germany
European Commission Publishes Legislative Proposals on Sustainable Finance Which Impacts Asset Managers - The EU Commission presented a package of measures on 24 May 2018, as a follow-up to its action plan on financing sustainable growth. The package includes 3 proposals aimed at...
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Investment Funds Update Europe - Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 4, 2018: Germany
BaFin interpretative notice regarding eligible investments for AIFs as real-estate companies BaFin published a new interpretative notice on 9 April 2018, regarding the requirements for alternative investment funds (AIF) in order to qualify as eligible real-estate companies for German real-estate funds (Immobilien-Sondervermögen) pursuant to sec. 231 et seq. of the German Capital Investment...
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Investment Funds Update Europe - Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 3, 2018: Germany
BaFin Publishes Interpretative Notice Regarding the Qualification of Tokens and Cryptocurrencies Offered Through Initial Coin Offerings to Investors - BaFin published its new interpretative notice on 20 February regarding the regulatory qualification of tokens and cryptocurrencies offered through initial coin offerings to investors as financial instruments....
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Investment Funds Update Europe: Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 2, 2018: Germany
BaFin Decision Regarding the Duties of Management Companies in Respect to Externally Managed Investment Companies - After a long consultation period, BaFin published its new interpretative decision on 21 December 2017 regarding the duties of management companies in respect to externally managed investment companies...
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Investment Funds Update Europe: Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 1, 2018: Germany
BaFin publishes new circular for investments of German Insurers - As of 12 December 2017 and after a long consultation period, BaFin has published its new Circular 11/2017 (Hinweise zur Anlage des Sicherungsvermögens von Erstversicherungsunternehmen, auf welche die Vorschriften für kleine Versicherungsunternehmen (§§ 212 bis 217 VAG) Anwendung finden, sowie von inländischen Pensionskassen...
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Financial Services Quarterly Report - Third Quarter 2017: Regulatory and Investment Tax Law Changes Create Opportunities for Marketing Funds to the German Institutional Market
Germany is the largest inbound market for alternative and traditional fund investments by institutional investors in the European Union. German insurers, pension funds, pension schemes (Versorgungswerke), corporate investors and family offices are all seeking attractive yields in the current low interest rate environment.
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Germany: New Notification Obligation Regarding Certain Foreign Investment Transactions in Germany
Highlights: - Acquisitions of 25% or more of a Germany company by a non-EU/EFTA investor are subject to the German foreign trade law. - Certain industry sectors of the German economy have been identified to be of particular interest when assessing whether the acquisition poses a threat to public security and order. - Non-EU/EFTA investors may be required to notify the German Federal...
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New guidance to register as “privileged” domestic or foreign investment fund under German investment taxation law
Pursuant to the new German investment tax act (GITA) that will take effect of 1 January 2018, domestic and foreign resident investment funds may become subject to German corporate income tax with various German source income (particularly dividend income from German shares and income from German-situs real estate). The German Federal Central Tax Office (Bundeszentralamt für Steuern) recently...
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Preview of Automated Vehicle Regulations in Germany
Germany’s Federal Ministry of Transport and Digital Infrastructure formally presented last week ethical guidelines that affirm that governments are focusing on similar themes in designing their regulatory approach to the automated vehicle industry.1 In keeping with proposed legislation and regulatory guidance in the United States, the guidelines recommend regulatory changes to address accident...
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The German Transparency Register is coming: New obligations for legal entities in Germany to disclose beneficial ownership information
Highlights - - Implementation of a public Transparency Register on beneficial ownership of legal entities. - Notification obligation applies to incorporated companies and certain other legal entities and arrangements; the beneficial owner may himself be obliged. - Notification deadline by October 1, 2017 at the latest, irrespective of nationality or domicile of beneficial owner.
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Investment Funds Update: Europe - Legal and regulatory updates for the funds industry from the key asset management centres and primary European fund domiciles - Issue 6, 2017: Germany
BaFin Publishes Guidance on the Authorization of Credit Institutions - BaFin issued a guidance notice on 20 July 2017 on the requirements for the application for a banking license in accordance with Sections 32 and 33 of the German Banking Act. The guidance includes a check list for the application and lists the documents that must be submitted to BaFin.