Last month (November 2020), BaFin updated its Guidance Notice (2013) regarding the marketing of cross border EU UCITS in Germany.

In the updated Guidance Note, BaFin clarified that for particular events (detailed below) which are already required to be provided to investors in Germany by way of a durable medium, in addition to the main medium stipulated in the (German) prospectus, must now be provided in German.  Up to now, such information was permitted to be provided in German or a language commonly used in international finance, including English.

  1. Suspension of the redemption of the units or shares of an EU UCITS;
  2. Termination of an EU UCITS’ management or the winding-up of an EU UCITS;
  3. Amendments to the fund rules which are inconsistent with existing investment principles, affect material investor rights, or relate to remuneration or the reimbursement of expenses that may be taken out of the EU UCITS’ assets, including the reasons for the amendments and the rights of investors, the information must be communicated in an easily understandable form and manner and must indicate where and how further information may be obtained;
  4. The merger of EU UCITS in the form of information on the proposed merger which must be drawn up in accordance with Article 43 of Directive 2009/65/EC; and
  5. The conversion of an EU UCITS into a feeder fund or any change to a master fund in the form of information which must be drawn up in accordance with Article 64 of Directive 2009/65/EC.

Any fund manager who has notified their UCITS for distribution in Germany will have to take this update into consideration and update their information document for Germany and/or German prospectus.

Please get in touch for further details.