InvG
InvG stands for Investmentgesetz, the German Investment Act, a federal law that governs the regulation of investment funds and investment companies in Germany. The Act provides the framework for the authorization, operation and supervision of investment funds, investment managers, and related market activities within the country. It defines key terms such as investmentvermögen (investment assets), Investmentgesellschaften (investment companies), and Investmentfonds (investment funds), and sets rules on structure, governance, valuation, risk management, and investor protection. The InvG also prescribes licensing requirements for fund managers, including capitalization, professional qualifications, and internal control mechanisms. In addition, it imposes rules on marketing and distribution, including disclosure duties, prospectus standards, and suitability considerations for investors.
Supervision under the InvG is primarily exercised by the Federal Financial Supervisory Authority (BaFin), with cooperation
Historically, the InvG was introduced in the 1990s in Germany as part of EU harmonization and to