The Implementation Of The AIFM-Directive In Germany – What Third Country Managers Should Know

The new German Capital Investment Act (Kapitalanlagegesetzbuch, "KAGB") enters into force on July 22, 2013. The KAGB will replace the Investment Act (Investmentgesetz, "InvG") and is supposed to regulate, for the first time, the entire German investment law. While the AIFM Directive ("AIFMD") aims at creating a harmonized regulatory framework and an internal market for the managers of alternative investment funds, the German legislator implemented the AIFMD in the KAGB thereby creating a cohesive set of rules for all openand closed-end funds and their managers in Germany. Unlike other European legislators such as the Luxembourgian, the German one goes beyond the goals of the AIFMD and provides for a comprehensive regulatory framework for all domestic fund products. In addition to the KAGB, the Commission's Delegated Regulation (EU) No 231/2013 of December 19, 2012 applies. As a Level 2 measure it supplements the AIFM Directive. Further Level 2 measures will become