Germany – a new law, the Financial Markets Promotion Act, which came into force on 1 July 2002, modernised German investment law. Among other things it is now possible to have different share classes for one fund and open-ended real estate funds are allowed to invest worldwide as long as currency risks are limited to 30% of net assets. Also, from 1 May 2002, under amendments to the 1994 Securities Trading Act, the previously separate supervisory offices for banking, insurance and investment were brought together into a new single regulator – Basin – Federal Financial Supervisory Authority, responsible to the Federal Ministry of Finance for all aspects of supervision. Basin has three aims stipulated under the law – investor protection, market transparency and market integrity – and pursues these through the issue of regulations, ordinances and guidelines.

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Germany, Global Mutual Funds Investment