Germany

Germany enhances rules on investor protection

Markus Pfüller, Heiner Hugger and Dietmar Anders, Clifford Chance Frankfurt.

On 24 May 2004 the German government published a draft bill aimed at enhancing investor protection in the capital markets (Anlegerschutzverbesserungsgesetz). Although the bill will modernise the current rules in several respects, it will significantly broaden the scope of application of existing German law, most notably in the areas of insider dealing, market manipulation and disclosure requirements. It will also introduce stricter measures for prosecuting violations. Market participants, particularly issuers of securities, will therefore be subject to increased potential liabilities under the new law.