Germany

Regulatory changes proposed in Germany – The Fourth Financial Markets Enhancement Act

Michael Cieslarczyk, Peter Scherer and Philip von Ilberg, Clifford Chance Pünder, Frankfurt

In early September 2001, the German federal government published the first unofficial draft of the Fourth Financial Markets Enhancement Act ( Entwurfsfassung des Vierten Finanzmarktförderungsgesetzes or the Draft Act). On November 14 2001 the federal government passed a slightly modified version. The modified draft version of the Draft Act will be discussed by the German Parliament in spring 2002 and is expected to come into force mid 2002. The purpose of this Draft Act is to improve the protection of private investors and to help extend the scope of capital markets activity in Germany. The Draft Act does not constitute an entirely new codification of financial markets laws but rather amends or substantially alters a number of existing laws and regulations. These include: the Exchange Act ; the Securities Trading Act ; the Investment Funds Companies Act ; the Foreign Investment Act ; the Sales Prospectus Act ; the Banking Act ; the Mortgage Banks Act ; the Protection of Deposits and Compensation of Investors Act ; and the Insurance Supervisory Act .