14.05.2019

German Finance Committee will facilitate Crowdlending

The Finance Committee of the German Bundestag has approved a proposal by the Federal Government for a law on Crowdlending with several amendments. He wants to increase the exemption limit for asset investments without a prospectus (massively) and disregard previous asset investments when considering the exemption limit. Furthermore, the maximum investment amounts per investor are to be significantly increased.

The main proposed modifications to the German Asset Investment Act (Vermögensanlagegesetz; VermAnlG) of the Finance Committee in detail

  1. The threshold for investments without a prospectus will rise from 2.5 million euros to 6 million euros (Sec. 2a Para. 1 VermAnlG)
  2. 2 Contrary to previous practice, assets that have not been sold or completely redeemed are not included in the calculation (Sec. 2a Para. 1 VermAnlG). At present, all investments of the same issuer must be included in the scope.
  3. The upper limit for individual investors is to be increased from EUR 10,000 to EUR 25,000 (Sec. 2a Para. Lit. bb VermAnlG)
  4. The asset investment information sheet comprising a maximum of three DIN A4 pages must contain slightly more information (Sec. 13 Para. 3 VermAnlG).

It can currently be assumed that the wishes of the 7th Finance Committee of the German Bundestag will be successful.

We will keep you informed about further developments and the resulting changes. We will be happy to advise you on the options available.