Towards the creation of a German hedge funds industry: an update

New regulations in Germany have created the most liberal regime for hedge funds in Europe, allowing the creation of German single hedge funds and funds of hedge funds as well as the public marketing of non-German funds of hedge funds.

Frank M Herring and Uwe Hartmann. Frank Herring is a banking partner in Norton Rose’s Frankfurt office.He specialises in banking regulation, investment funds law and derivatives.Together with his team he advises on investment funds. Uwe Hartmann is a partner in the commercial tax department in the Frankfurt office.Uwe deals with a wide range of national and international tax issues.His particular area of expertise is international taxation and structured products funds.

Recognising the demand of retail and institutional investors for German hedge fund products, Germany’s Federal Minister of Finance Hans Eichel announced in March 2003 that Germany was to allow the sale and marketing of German and non-German hedge funds from the start of 2004.