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BaFin allows British investment funds to submit marketing notifications before end of transition period

Chris Hamblin, Editor, London, 26 November 2020

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After the 'transition' stage in the United Kingdom's departure from the European Union expires on 31 December, British investment funds may no longer be marketed in Germany on the basis of the European passporting regime.

If these funds are to continue to be marketed in Germany after expiry of this transition period, a bilateral notification procedure must be completed for the marketing of "third-country funds" on behalf of each fund.

At the moment, British investment funds are still being marketed in Germany by way of 'passporting' procedures sanctioned by section 310 of the German Capital Investment Code (Kapitalanlagegesetzbuch – KAGB) for UCITS (Undertakings for the Collective Investment in Transferable Securities) and section 323 of the same for special alternative investment funds or AIFs. Once the transition period expires, this will no longer be possible and the marketing authorisations will become void.

If these funds are to continue to be marketed in Germany after the expiry of this transition period, a bilateral notification procedure must be completed for each fund for the marketing of "third-country funds" under section 320 of the KAGB for the former UK UCITS or section 329/section 330 of the KAGB for the special AIFs.

Marketing notification procedures for British investment funds which are still to be marketed in Germany can, however, before 31 December even if they are not "third-country funds" by this date, thus preventing any interruptions in the marketing of these funds.

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