On Nov. 27, 2024, GE PRL received bill 20/13955 with justification and assessment.
Act is planned to enter into force on Apr. 16, 2026; art 1, 2, 4, 5, are planned to enter into force on Jul. 1, 2025; art 3 to apply on Jul. 1, 2025 and expire on Apr. 15, 2026.
On Aug. 5, GE GVT issued bill with provisions implementing AIFMD II.
GE GVT issued a draft law to strengthen the German fund market and implement Dir 2024/927 (AIFMD II) amending UCITS Directive and AIFMD with regard to delegation agreements, liquidity risk management and supervisory reporting.
Plus, provision of custody and depository services, lending by alternative investment funds on 1:1 basis and closed-end special funds in mutual fund sector will be created.
Follows EU CNCL Mar. 2024 issued Dir 2024/927 in the Official Journal, see #179865.
Bill Overview
Germany has developed well as a fund market but there is still room for improvement.
A strong, and at the same time, resilient fund market can make an important contribution to financing infrastructure and the transformation of the economy.
Directive 2024/927 must be implemented into national law by Apr. 16, 2026.
The directive aims to create uniform rules across Europe for reporting on outsourcing, the use of liquidity management tools and lending by alternative investment funds.
Effectiveness
Subject to sub-sections 2 and 3, this law shall enter into force on Apr. 16, 2026.
The first entry in article 1(1)(j), article 1(32) to (36), 53, 54, 70(b), 85, 87, 88 and the first paragraph in article 1(101) shall enter into force on Jul. 1, 2025.
Article 2 shall enter into force on Jul. 1, 2025 and shall expire on Apr. 15, 2026.
Oct. 2024 Final Draft Bill Published
On Oct. 21, 2024, GE GVT published the final draft of the Fund Market Strengthening Act, to implement amendments to UCITS Directive (2009/65/EC) and AIFM Directive (2011/61/EU) through the new EU Directive 2024/927, into national law requirements.
Follows a period of consultation on proposals, with the responses including GE DK, the Chamber of Auditors, Federal Association of Alternative Investments, with the Federal Association of Investment and Asset Management, and German Insurance Association.
The draft includes the possibility of setting up closed special funds in the public fund sector to be created, and that providers of closed funds should also be able to offer more citizen participation in the field of renewable energies, more easily than before.
The bill will now complete its passage through the required parliamentary process in GE PRL, with any amendments made to text as necessary, and it will then be enacted.
Nov. 2024 Bill in GE PRL
On Nov. 27, 2024, GE PRL received bill 20/13955 with justification and assessment.
Act is planned to enter into force on Apr. 16, 2026; art 1, 2, 4, 5, are planned to enter into force on Jul. 1, 2025; art 3 to apply on Jul. 1, 2025 and expire on Apr. 15, 2026.
Regulators
GE GVT; GE PRL
Entity Types
Auditor; HF; IA; Ins; Inv Co
Reference
Bill 20/13955, 11/27/2024; Bill, PR 10/21/2024; PR 8/5/2024; Bill, 7/18/2024; Dir 2024/927; AIFMD Dir 2011/61; UCITS Dir 2009/65; ESG
