{"id":44159,"date":"2017-08-01T10:16:03","date_gmt":"2017-08-01T08:16:03","guid":{"rendered":"https:\/\/newserver.fyb.de\/produkt\/loan-funds-for-institutional-investors-in-consideration-of-current-regulatory-and-tax-developments\/"},"modified":"2017-08-01T10:16:03","modified_gmt":"2017-08-01T08:16:03","slug":"loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments","status":"publish","type":"product","link":"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/","title":{"rendered":"Loan funds for institutional investors in consideration of current regulatory and tax developments"},"content":{"rendered":"<p><strong>Patri\u00adcia Volhard, LL.M.  <\/strong>- Attor\u00adney at Law and Part\u00adner P+P P\u00f6llath + Part\u00adners, Frankfurt\/Main<\/p>\n<p><strong>Dr. Peter Bujot\u00adzek, LL.M.<\/strong>  \u2014 Attor\u00adney at Law and Coun\u00adsel P+P P\u00f6llath + Part\u00adners, Frankfurt\/Main<\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Loan funds are a very sought-after form of invest\u00adment for German insti\u00adtu\u00adtio\u00adnal inves\u00adtors these days. This deve\u00adlo\u00adp\u00adment is partly due to the new regu\u00adla\u00adtory envi\u00adron\u00adment to which German insu\u00adrance compa\u00adnies, pension plans and pension funds are subject. The banking super\u00advi\u00adsory autho\u00adrity has now also reac\u00adted to this and softened the rest\u00adric\u00adtive admi\u00adnis\u00adtra\u00adtive prac\u00adtice with regard to lending by funds. For exam\u00adple, lending by funds is now permis\u00adsi\u00adble under certain condi\u00adti\u00adons and is no longer subject to the licen\u00adsing requi\u00adre\u00adment under the KWG. The follo\u00adwing article pres\u00adents the new regu\u00adla\u00adtory envi\u00adron\u00adment of these loan funds and their inves\u00adtors and explains the tax aspects of this asset class, which are also in&nbsp;flux.&nbsp;<\/strong><\/p>\n<p><strong>The Regu\u00adla\u00adtory Envi\u00adron\u00adment of German Insti\u00adtu\u00adtio\u00adnal Investors<\/strong><\/p>\n<p>German insu\u00adrance compa\u00adnies and pension funds are subject to the Invest\u00adment Ordi\u00adnance for the invest\u00adment of tied assets. Accor\u00adding to this, these inves\u00adtors may only invest their tied assets in certain asset clas\u00adses. Each asset class has its own requi\u00adre\u00adments. The Invest\u00adment Ordi\u00adnance, which was in force until 3.3.2015, allo\u00adwed invest\u00adment in funds inves\u00adt\u00ading in loans only to a limi\u00adted extent and under very strict condi\u00adti\u00adons. This has chan\u00adged with the entry into force of the new Invest\u00adment Regu\u00adla\u00adtion on 03.03.2015: Accor\u00adding to the new Invest\u00adment Regu\u00adla\u00adtion, invest\u00adment in open or closed-end funds that are 100% inves\u00adted in loans is allo\u00adwed if they are EU funds mana\u00adged by a fully regu\u00adla\u00adted mana\u00adger that is licen\u00adsed under the AIFM Direc\u00adtive. Under certain condi\u00adti\u00adons, invest\u00adment in funds domic\u00adi\u00adled in an OECD coun\u00adtry is also permit\u00adted, provi\u00added that the mana\u00adger is subject to compa\u00adra\u00adble super\u00advi\u00adsion, the fund\u2019s invest\u00adment stra\u00adtegy is geared towards holding the loans for the long term, and the mana\u00adger performs compre\u00adhen\u00adsive due dili\u00adgence prior to the investment.<\/p>\n<p>German pension funds (special pension insti\u00adtu\u00adti\u00adons for certain profes\u00adsio\u00adnal clas\u00adses) that are not subject to BaFin super\u00advi\u00adsion are not directly subject to the Invest\u00adment Ordi\u00adnance, but are subject to it by inter\u00adnal statute or under state&nbsp;law.<\/p>\n","protected":false},"featured_media":41360,"comment_status":"open","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false},"product_brand":[],"product_cat":[2452,2552,2588,2592],"product_tag":[1920,2221,2231,2238,2245,2250,2255,2257,2259],"class_list":{"0":"post-44159","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-ebook-en","7":"product_cat-fyb-2016-en","8":"product_cat-patricia-volhard-ll-m-en","9":"product_cat-dr-peter-bujotzek-ll-m-en","10":"product_tag-aifm-directive","11":"product_tag-patricia-en","12":"product_tag-bujotzek-en","13":"product_tag-volhard-en","14":"product_tag-peter-en","15":"product_tag-institutional-investors","16":"product_tag-loan-fund","17":"product_tag-kwg-en","18":"product_tag-investment-regulation","19":"pa_sprache-english-3","20":"pa_sprache-german","22":"first","23":"outofstock","24":"taxable","25":"shipping-taxable","26":"purchasable","27":"product-type-variable"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Loan funds for institutional investors in consideration of current regulatory and tax developments - FYB Financial Yearbook<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Loan funds for institutional investors in consideration of current regulatory and tax developments - FYB Financial Yearbook\" \/>\n<meta property=\"og:description\" content=\"Loan funds are a very sought-after form of investment for German institutional investors these days. This development is partly due to the new regulatory environment to which German insurance companies, pension plans and pension funds are subject. The banking supervisory authority has now also reacted to this and softened the restrictive administrative practice with regard to lending by funds. For example, lending by funds is now permissible under certain conditions and is no longer subject to the licensing requirement under the KWG. The following article presents the new regulatory environment of these loan funds and their investors and explains the tax aspects of this asset class, which are also in flux.  The Regulatory Environment of German Institutional Investors German insurance companies and pension funds are subject to the Investment Ordinance for the investment of tied assets. According to this, these investors may only invest their tied assets in certain asset classes. Each asset class has its own requirements. The Investment Ordinance, which was in force until 3.3.2015, allowed investment in funds investing in loans only to a limited extent and under very strict conditions. This has changed with the entry into force of the new Investment Regulation on 03.03.2015: According to the new Investment Regulation, investment in open or closed-end funds that are 100% invested in loans is allowed if they are EU funds managed by a fully regulated manager that is licensed under the AIFM Directive. Under certain conditions, investment in funds domiciled in an OECD country is also permitted, provided that the manager is subject to comparable supervision, the fund&#039;s investment strategy is geared towards holding the loans for the long term, and the manager performs comprehensive due diligence prior to the investment. German pension funds (special pension institutions for certain professional classes) that are not subject to BaFin supervision are not directly subject to the Investment Ordinance, but are subject to it by internal statute or under state law.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/\" \/>\n<meta property=\"og:site_name\" content=\"FYB Financial Yearbook\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/08\/Volhard.png\" \/>\n\t<meta property=\"og:image:width\" content=\"334\" \/>\n\t<meta property=\"og:image:height\" content=\"298\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/\",\"url\":\"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/\",\"name\":\"Loan funds for institutional investors in consideration of current regulatory and tax developments - FYB Financial Yearbook\",\"isPartOf\":{\"@id\":\"https:\/\/www.fyb.de\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/08\/Volhard.png\",\"datePublished\":\"2017-08-01T08:16:03+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/#primaryimage\",\"url\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/08\/Volhard.png\",\"contentUrl\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/08\/Volhard.png\",\"width\":334,\"height\":298},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.fyb.de\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"FYB Shop\",\"item\":\"https:\/\/www.fyb.de\/en\/shop\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Loan funds for institutional investors in consideration of current regulatory and tax developments\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.fyb.de\/en\/#website\",\"url\":\"https:\/\/www.fyb.de\/en\/\",\"name\":\"FYB Financial Yearbook\",\"description\":\"For Your Business\",\"publisher\":{\"@id\":\"https:\/\/www.fyb.de\/en\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.fyb.de\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.fyb.de\/en\/#organization\",\"name\":\"FYB Financial Yearbook\",\"url\":\"https:\/\/www.fyb.de\/en\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg\",\"contentUrl\":\"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg\",\"caption\":\"FYB Financial Yearbook\"},\"image\":{\"@id\":\"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Loan funds for institutional investors in consideration of current regulatory and tax developments - FYB Financial Yearbook","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/","og_locale":"en_US","og_type":"article","og_title":"Loan funds for institutional investors in consideration of current regulatory and tax developments - FYB Financial Yearbook","og_description":"Loan funds are a very sought-after form of investment for German institutional investors these days. This development is partly due to the new regulatory environment to which German insurance companies, pension plans and pension funds are subject. The banking supervisory authority has now also reacted to this and softened the restrictive administrative practice with regard to lending by funds. For example, lending by funds is now permissible under certain conditions and is no longer subject to the licensing requirement under the KWG. The following article presents the new regulatory environment of these loan funds and their investors and explains the tax aspects of this asset class, which are also in flux.  The Regulatory Environment of German Institutional Investors German insurance companies and pension funds are subject to the Investment Ordinance for the investment of tied assets. According to this, these investors may only invest their tied assets in certain asset classes. Each asset class has its own requirements. The Investment Ordinance, which was in force until 3.3.2015, allowed investment in funds investing in loans only to a limited extent and under very strict conditions. This has changed with the entry into force of the new Investment Regulation on 03.03.2015: According to the new Investment Regulation, investment in open or closed-end funds that are 100% invested in loans is allowed if they are EU funds managed by a fully regulated manager that is licensed under the AIFM Directive. Under certain conditions, investment in funds domiciled in an OECD country is also permitted, provided that the manager is subject to comparable supervision, the fund's investment strategy is geared towards holding the loans for the long term, and the manager performs comprehensive due diligence prior to the investment. German pension funds (special pension institutions for certain professional classes) that are not subject to BaFin supervision are not directly subject to the Investment Ordinance, but are subject to it by internal statute or under state law.","og_url":"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/","og_site_name":"FYB Financial Yearbook","og_image":[{"width":334,"height":298,"url":"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/08\/Volhard.png","type":"image\/png"}],"twitter_card":"summary_large_image","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/","url":"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/","name":"Loan funds for institutional investors in consideration of current regulatory and tax developments - FYB Financial Yearbook","isPartOf":{"@id":"https:\/\/www.fyb.de\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/#primaryimage"},"image":{"@id":"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/#primaryimage"},"thumbnailUrl":"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/08\/Volhard.png","datePublished":"2017-08-01T08:16:03+00:00","breadcrumb":{"@id":"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/#primaryimage","url":"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/08\/Volhard.png","contentUrl":"https:\/\/www.fyb.de\/wp-content\/uploads\/2017\/08\/Volhard.png","width":334,"height":298},{"@type":"BreadcrumbList","@id":"https:\/\/www.fyb.de\/en\/produkt\/loan-funds-for-institutional-investors-under-consideration-of-current-prudential-and-tax-developments\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.fyb.de\/en\/"},{"@type":"ListItem","position":2,"name":"FYB Shop","item":"https:\/\/www.fyb.de\/en\/shop\/"},{"@type":"ListItem","position":3,"name":"Loan funds for institutional investors in consideration of current regulatory and tax developments"}]},{"@type":"WebSite","@id":"https:\/\/www.fyb.de\/en\/#website","url":"https:\/\/www.fyb.de\/en\/","name":"FYB Financial Yearbook","description":"For Your Business","publisher":{"@id":"https:\/\/www.fyb.de\/en\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.fyb.de\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.fyb.de\/en\/#organization","name":"FYB Financial Yearbook","url":"https:\/\/www.fyb.de\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/","url":"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg","contentUrl":"https:\/\/www.fyb.de\/wp-content\/uploads\/2020\/06\/logo.svg","caption":"FYB Financial Yearbook"},"image":{"@id":"https:\/\/www.fyb.de\/en\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product\/44159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product"}],"about":[{"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/types\/product"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/comments?post=44159"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/media\/41360"}],"wp:attachment":[{"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/media?parent=44159"}],"wp:term":[{"taxonomy":"product_brand","embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product_brand?post=44159"},{"taxonomy":"product_cat","embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product_cat?post=44159"},{"taxonomy":"product_tag","embeddable":true,"href":"https:\/\/www.fyb.de\/en\/wp-json\/wp\/v2\/product_tag?post=44159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}