Having changes to the investment conditions of investment funds approved
Source: BUS Rheinland-PfalzAccording 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. Operationally active companies outside the financial sector are not considered investment funds.
As a capital management company (KVG), investment stock corporation or open-ended investment limited partnership, you must have amended investment conditions approved by the German Federal Financial Supervisory Authority (BaFin).
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
- which 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 assets are formed
- whether and which costs must be paid by investors, e.g. issue premiums, management fees, redemption fees
You may only attach the amended investment conditions to your sales prospectus once they have been approved by BaFin. In addition, you must make the amendments available to the public on your website in the version applicable at the time.