BERLIN (Dow Jones) – The Federal Cabinet has approved at its meeting on Wednesday the bill to " strengthen investor protection and to improve the functioning of the capital market , "as a government spokesman confirmed Dow Jones Newswires on Wednesday. ( Reuters photo
The Act provides for measures in order to prevent a " creeping up "of companies . It also introduces a minimum holding of open real estate funds and tightening the rules for investment advice . The law wants the Federal Government resolve existing " deficiencies in financial markets ".
The article law includes mainly changes in the Securities Act and the Investment Act . Among other things, " wertpapierhandelsrechtliche , new reporting requirements are introduced in terms of derivatives with cash settlement and return of claims arising from securities lending and repo transactions "to avoid a " sneaking "to corporations .
" To avoid , that can be further developed in less transparent ways large voting positions, without either the BaFin are still the market or issuer of the set soon informed to the wertpapierhandelsrechtlichen reporting requirements are expanded , " says the bill in the Dow Jones Newswires had insights .
It is planned to also introduce a minimum holding for two years and a Halteanreizes for the subsequent two years for shares in open real estate funds. Excluded are the amounts to be of up to 5,000 EUR per month, and investors , so retail investors can continue to return the shares until the amount. In addition to the frequency of increased property valuations and reported to be an improved process for the orderly liquidation of real estate funds are established for the case that the withdrawal will be suspended and there is no prospect of a sustainable reopening.
In addition , the bill setting up a at the Federal Financial Supervisory Authority ( BaFin ) guided non-public database, register with the Institute their investment advisors, sales managers and so called compliance officers to confirm the proper qualifications should . For serious breaches of investor protection provisions to institutions affected employees up to two years may no longer use in their positions.
Furthermore, " to brief leaves " are introduced by the institutes need to educate their customers investment advice short and simple form of the essential characteristics of a financial instrument. Regulations for the so called gray capital , contrary to original plans are not in the bill , after debate between Finance and Economy were. These arrangements will now be presented in a separate bill under the leadership of both houses in the fourth quarter.
Both ministries have since agreed , according to the Treasury, that active at the market, sellers of financial products should remain under the Labour and not the BaFin, there should be , however, continue strict requirements on the intermediaries who sell such shares in closed-end funds . Federal Minister Rainer Brüderle (FDP had ) has previously defended against plans by Federal Finance Minister Wolfgang Schäuble ( CDU ), to assume the consultants on terror capital of financial supervision.
– By Andreas Kissler , Dow Jones Newswires , +49 ( 0) 30-2888 4118, @ dowjones.com berlin.de
(Beate Preuschoff contributed to this report)
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