Funds and investments
The German Capital Investment Code (KAGB) came into effect on July 22, 2013 and led to harmonization of the regulations for open and closed funds which are referred to as investment asset pools or AIF (alternative investment funds). These rules are EU directives whose detailed regulations are applicable in the member states. They are accompanied by administrative orders by the BaFin (Federal Financial Supervisory Authority) for which the German legislator has implemented KAGB supplements within the framework of any remaining scope of applications. And standardized regulations have also been created for risk and asset or portfolio management of the investment assets by so-called AIFM (alternative investment fund managers) and capital management companies (KVG). Furthermore and distinctive from the investment assets, there are other possibilities of distributing stakes in operating companies outside the financial sector (so-called asset investments) in accordance with the application decree issued by the Federal Financial Supervisory Authority (BaFin).
A distinction is still made between funds which are also open to private investors (mutual funds) and funds which are only accessible to professional and semi-professional investors (special AIF). Special AIF display lower issuance requirements than mutual funds.
Professional investors can be certain companies from the financial sector as well as companies whose financial indicators exceed certain threshold values. Semi-professional investors must provide evidence of minimum experience and/or make a minimum investment. Classification of (semi-professional and professional) investors must always be determined separately.
Funds falling within the scope of the KAGB must be supported separately by function by a capital management company (KVG), especially in terms of risk and investment management. This is largely handled by another company (external KVG) or by the actual fund (internal KVG). The KVG requires approval by the BaFin.
A KVG must support its funds in accordance with the tight restrictions of the KAGB. Most mutual investment funds are issued in the legal form of a closed investment limited partnership whose shares are acquired following approval by BaFin of the bid. The legal form of a limited partnership ("Kommanditgesellschaft") is typical for asset investments outside the KAGB.
For several decades, we have been offering material asset support in Germany and abroad with various fund and asset investment products, especially in the areas of shipping, real estate and renewable energy.
Assessment of prospectuses
We assess your investment offers in accordance with the so-called IDW S 4-Standard which means we not only help you to obtain insurance cover for your financial brokers but we also review your bids prior to submission to the BaFin.
Review of current accounts and performance statements in line with BSI
We examine the performance of your company in the past, which represents your business card in terms of product quality, and issue certifications.
Year-end audit for KVGs, investment funds and investment companies
We draw up or examine the annual financial statements of AIFM (KVG), AIF (funds) or investment companies.
Assessments (acquisition, ongoing assessments)
We carry out assessments based on the German income approach or discounted cash flow method, for both acquisitions and ongoing assessments.
Reviewing valuations (statements of net assets)
We are extensively involved in reviewing statements of net assets and investment valuations as defined by KAGB. We have developed efficient and effective methods for processing orders in this area where we combine our expertise in drawing up assessments, annual financial statements and reviews.
Consulting in preparing investment offers
We provide you with legal and tax support in preparing investment offers.
Reviewing information material according to WpHG (German securities trading law)
We examine your sales material for conformity to WpHG.
Compliance consulting for capital management companies
Our many years of experience in the area of internal control/steering and monitoring systems and the Sarbanes Oxley Act (SOX 404) offer us ideal conditions for consulting in capital management companies (e.g. stress tests, investment market risks, outsourcing management, liquidity management, risk and investment management).
Monitoring the application of funds
On the basis of our many years of expertise in this area, we continue to monitor the application of funds for investment companies by your associated company's payment and investment account.