German Retail Investor Protection Act

September 29, 2014

The German Federal Ministry of Finance published the draft Retail Investor Protection Act on 28 July 2014. The Act is intended to strengthen the protection of German retail investors – in particular, by expanding the scope of regulatory supervision over certain financial instruments sold to such investors. The Act is an important plank of the German government’s plan to increase investor protection (Action Plan) introduced earlier this year. The Action Plan sets out proposals to tighten regulation of hitherto unregulated investments in the so-called “grey capital market”, including through the introduction of more stringent rules on prospectuses and restrictions on advertising.

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