Looking to distribute your fund cross-border into Germany?
Here are 5 key things to note:
1. The AIFMD Marketing Passport also applies to Semi-Professional Investors in Germany.
2. Actively marketing non-European funds is theoretically possible via PPR given the number of requirements to be satisfied e.g. equivalence criteria and appointment of (at least) a depo-lite depositary.
3. However, to test investor appetite in advance of registering the fund, it is possible to do some pre-marketing in Germany (although notification of such pre-marketing is required).
4. In terms of licensing, it is possible for a third-country regulated firm to apply for an “exemption order” from the BaFin where activities will be restricted to institutional clients and the BaFin is comfortable that it does not need to separately supervise the firm. We note that there is not always satisfactory co-operation between regulators for the BaFin to receive sufficient comfort to approve such an exemption.
5. It may be possible to rely on a reverse enquiry without triggering any licensing/registration requirements but certain conditions must be satisfied (and note a stricter approach is taken where dealing with retail investors!).
How aosphere can help
Simplify your cross-border fund distribution with a Rulefinder Marketing Restrictions subscription.
