The first license applications of Alternative Investment Fund Managers (AIFM) under the new Capital Investment Code (Kapitalanlagegesetzbuch, KAGB) are on their way. Any form of regulatory license has its own challanges, even so the AIFM license. So far, the following special issues arose:
- Additional occupations: Some managing directors of AIFM are still engaged in the management of various property companies or SPVs
- Trustworthiness of managing directors: Since some of the property companies or SPVs had (also due to the financial crisis) to start insolvency proceedings, managing directors carrying sometimes the burden of having insolvency experience
- Conclusive regulatory business case: Always a neuralgic point, especially in new areas of regulation like AIFs
We expect the regulator’s first feedback on these issues within the next weeks and will report here accordingly.