#BGBl. 2026 I Nr. 97Law to Limit Risks from Investment Funds and Implement EU Directive (2024/927) Regarding Transfers, Liquidity Risk Management, Supervisory Reporting, Custodial Services, and Lending by Alternative Investment Funds; Implementation of EU Directive (2024/2994) on Concentration Risk Arising from CCP Risk Positions and Default Risk in Centrally Cleared Derivative Transactions and Amendments to Other Regulations
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The law limits risks associated with investment funds and aligns German regulations with two EU directives. It introduces measures for managing liquidity risks, requires new reports to supervisory bodies, and sets rules for custody services. The law also addresses concentration and default risks related to derivative transactions. Alternative investment funds and their operations are significantly affected, requiring compliance efforts especially in risk management and custodial arrangements.
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Key Changes
- New rules for managing liquidity risk in investment funds.
- Requirements for expanded supervisory reporting.
- Changes in custodial services regulations.
Obligations
What this law requires
Alternative investment funds must implement measures for liquidity risk management as outlined in the law.
Funds are required to provide new reports to supervisory bodies regarding the effects of transmission agreements and liquidity risk management.
Custodians providing custodian and deposit services must comply with the requirements laid out in the law.
Funds must address and mitigate concentration risks arising from risk positions towards central counterparties as per the law.
Funds must manage default risks related to centrally cleared derivative transactions in accordance with the provisions of the law.