Germany grants a reprieve to GOEFs

The German government has reversed its plan to ban new open-ended funds, including spezialfonds. Following protest from banks, insurers and market associations, the government revised the draft for the implementation of the Alternative Investment Fund Managers Directive to allow open-ended funds to be issued within limits and for spezialfonds to continue.

The spezialfonds sector had been set to grow, with Cordea Savills, LaSalle Investment Management and Internos Real Investors having set up regulated KAG investment companies  required to run speziafonds. Spezialfonds got caught up in regulation to protect open-ended fund investors, following liquidity problems in some funds.