Have investment conditions for newly established investment funds approved

Source: BUS Rheinland-Pfalz

According to the legal definition, an investment fund is an undertaking for collective investment that collects capital from a number of investors in order to invest it according to a fixed investment strategy for the benefit of these investors. Operating companies outside the financial sector are not considered investment funds.

The investment 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
what conditions apply to the redemption and conversion of units or shares
whether income from the investment fund is distributed or reinvested
the principles according to which sub-investment funds are formed
whether and what costs investors have to pay, e.g. front-end loads, management fees, redemption fees

You may only attach the investment conditions to your sales prospectus once they have been approved by BaFin. In addition, you must make the terms and conditions of investment available to the public in the currently valid version on your website.

To apply for new approval for the investment conditions of an investment fund, proceed as follows:

Create an informal cover letter in which you apply for re-approval.
Send the application, including the investment conditions, to BaFin via the notification and publication platform (MVP Portal).
After receiving your documents, BaFin will check whether your information is complete and may request further documents from you. Furthermore, BaFin may request changes to the submitted investment conditions 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 notification of your application.
You will also receive a fee notice. Pay the fees.

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.

Processing Time: 4 Weeks
BaFin has 4 weeks to grant approval. If the requirements for approval are not met, BaFin will inform you of the reasons within 4 weeks and request missing or amended information or documents. If BaFin does not meet both deadlines, the approval is automatically deemed to have been granted.

Have investment conditions for newly established investment funds approved

Process flow

Requirements

Which documents are required?

What are the fees?

What deadlines do I have to pay attention to?

Processing duration

Legal basis

Applications / forms

Appeal

What else should I know?

Translation note