A model regime for hedge funds

Germany is about to enact a law that will create a new asset class for investors in the federal republic that should also attract foreign investors. The star attraction of the next set of financial reform bills set to go before the Bundestag this autumn is an easing of the rules covering hedge funds.

Part of a fifth wave in a makeover of Germany’s financial regulations, designed to bring Germany’s banking rules into line with EU regulations, the financial modernization bill is scheduled to be read during this autumn’s session and must be passed by January.