Kapitalanlagegesetzbuch

This article is about the German KAGB, or the German Capital Investment Code. For the Hawaiin FM radio station, see KAGB.

KAGB Kapitalanlagegesetzbuch (German Investment Code)
Enacted by the Bundestag (German Federal Parliament)
Passed	May 16, 2013
Commenced	July 22, 2013

The Kapitalanlagegesetzbuch, abbreviated as KAGB, is the German Investment Code for investment management.[1][2][3]

History

The KAGB was approved May 16, 2013, by the Bundestag, the German Federal Parliament, and became effective July 22, 2013. The KAGB replaced the Investmentgesetz (InvG), the German Investment Act (de), which had been created by the Investment Modernization Act. The InvG was adopted December 15, 2005, and expired July 21, 2013. Among other things, the KAGB integrated regulations to cover numerous new investment products (alternative investments), including derivatives. Its objective is to standardization investor protections and curb grey markets, with respect to updating and aligning with the European Union.

As an example of part of its scope, KAGB Section 17 (of 359) defines a Kapitalverwaltungsgesellschaft (KVG) (de), which, in English, is a German Investment Management Company. A KVG must have a registered office and head office in Germany that manages a German investment fund, or European Union investment fund, or Special Foreign Alternative Investment Fund (AIF). The fund may be structured as an Undertakings for Collective Investment in Transferable Securities (UCITS) under the UCITS Directive or a Special alternative investment fund (AIF) under the AIFM Directive.

Prior German investment acts

1957: Gesetz über Kapitalanlagegesellschaften (KAGG), the Capital Investment Companies Act of 1957 (KAGG)

2005–2013: Investmentgesetz (InvG), the German Investment Act (de)

Regulatory authority

The German regulatory authority that enforces the code is called the Bundesanstalt für Finanzdienstleistungsaufsicht, or BaFin for short, which translates to "Federal Financial Supervisory Authority."

Translation

Kapitalanlagegesetzbuch is a quadruple-word German compound noun.

English translation
	Kapital	=	capital
	Anlage	=	investment
	Gesetz	=	law
	Buch	=	book (or code)

Complete text (in German)

• KAGB text, via buzer.de (de)

See also

• Alternative Investment Fund Managers Directive 2011
• BVI, short for Bundesverband Investment und Asset Management e.V. (de), translates to Federal Association Investment and Asset Management, a registered association under German law (e.V. = Eingetragener Verein). The BVI represents the interests of the German investment management industry at national and international levels. It was founded March 25, 1970, in Frankfurt, by seven German companies.
• KAGB (interwiki link to wiktionary)

References

1. Thomas M.J. Möllers (de), Andreas Kloyer (eds.). Das Neue Kapitalanlagegesetzbuch (namesake of a conference at the University of Augsburg, June 14–15, 2013). Published in Munich by Verlag C.H. Beck (2013); OCLC 867137468; ISBN 9783406656187
2. Matthias Geurts, Leif Schubert. KAGB kompakt – Eine strukturelle Einführung in das neue Investmentrecht. Bank-Verlag (de) (2014); OCLC 871583496; ISBN 978-3-86556-408-5
3. Frank Dornseifer, Thomas A. Jesch, Ulf Klebeck, Claus Tollmann (eds.). Damir Barac (revised by). AIFM-Richtlinie (Directive 2011/61/EU on Alternative Investment Fund Managers with respect to the KAGB-E) (commentary). Munich: Verlag C.H. Beck (2013); OCLC 1033868300; ISBN 978-3-406-64020-9
   Note: Frank Dornseifer is Managing Director of Bundesverband Alternative Investments e.V. (BAI), the German advocacy organization for the Alternative Investment industry.