In the event of the acquisition of a credit portfolio, insurance companies and pension funds will receive the opportunity to register the mortgaged claims in a refinancing register (Refinanzierungsregister) as of January 1, 2014. With the registration the acquisition of the mortgaged claims would be insolvency-proof. As a result, credit portfolio transactions should be easier and safer to structure in the future.

The German insurance supervisory authority published two guidance papers on October 22 and 23, 2013. The first guidance paper allows for an increase of forward purchases of fixed income instruments. The second one modifies and amends the guidance paper on use of external ratings and internal credit risk assessments initially published on June 28, 2013.

The JOBS Act has lifted the ban on fund managers from public advertising. At the same time, fund managers now engaging in general solicitation may find themselves running afoul of a EU directive, the Alternative Investment Fund Managers Directive (the “AIFMD”). Fund managers are well advised to tread carefully and to take active steps now in order to avoid triggering the AIFMD and its transparency, reporting and disclosure obligations vis-à-vis EU regulators.