BaFin publishes rules regarding the prolongation of the maturity period of closed end funds


It is generally required that the maturity period of these types of funds is limited, and must be stipulated in the articles of association as well as in the investment regulation (Anlagebedingungen). BaFin clarifies that the prolongation of the maturity period is allowed through a separate shareholders' resolution for a maximum of 50 % of the present maturity period, in accordance with the investment regulation provisions. Nevertheless, the maturity period must not exceed 30 years. Further, the investment regulation must state concrete reasons for allowing a prolongation.