When distributing investment funds and designing the fund documentation, information on revocation rights must be observed. This applies not only to mutual funds, but also to special funds if they are sold to “consumers” as defined by the German Civil Code. In addition to small investors, this may also include semi-professional investors. While the KAGB contains a special regulation in the area of open-end funds, the general regulations of the BGB apply to closed-end funds – which, however, do not apply to investments in closed-end funds.
Frank Müller and Tobias Koch outline which special features have to be observed in the context of revocation rights for closed-end funds and which risks are threatening in case of missing or incorrect information. Read the full article here (in German).