The UK’s Prudential Regulation Authority (PRA) is examining how Barclays accounts for financing for private credit funds via total return swaps. The classification as trading book rather than banking book has implications for risk, capital and the close interdependence between banks and funds.
Colombia sought to channel pension funds into the country by decree, but withdrew the measure due to the risks involved. With its Savings and Investments Union, the EU is focusing on market integration rather than top-down control. Crucially, mobilising capital generates investment through viable projects.
The Lower Saxony Fiscal Court ruled that carried interest is not subject to VAT in the specific case, as it is a participation in the company's success and not a consideration for a service. Due to fundamental importance, the appeal was allowed.
The Federal Court of Justice prohibits administrators from charging commissions for the rental of apartments that they manage themselves (Az. I ZR 224/25). The aim is more market transparency; However, costs do not disappear and could be priced differently. This could favor scaling and disadvantage smaller HOAs.
Luxembourg plans to allow SCS/SCSp-AIFs umbrella structures with legally separate compartments even without a fund product law with draft law 8814 (30 July 2026). The aim is unbundling: regulation via the approved EU AIFM, product design as required – for example for concentrated assets.
On 17.12.2025 (5 K 2500/22), the Tax Court of Baden-Württemberg denies that the change of the management company of a Luxembourg FCP triggers a transfer of shares pursuant to section 1 (3) no. 4 GrEStG. Legal positions are decisive, not functions. The implications extend beyond Luxembourg.
BaFin submits draft of KAGB amendments. Lending is not part of portfolio management and can be outsourced, if necessary with a KWG licence requirement. MiFID services remain permissible, but must be clearly assigned and transparently mapped in the licence notice.
An ECJ ruling of 4 June 2026 (C-837/24, Nova Iberomoldes) focuses on the economic reality of share deals. It could limit national real estate transfer taxes if there is no actual change of ownership. For Germany, there are conceivable effects.
The Higher Regional Court of Cologne (judgment of 25 April 2024) on redemption suspensions for open-ended special real estate funds clarifies: In case of doubt, contractual rather than market logic decides. The question of price is particularly relevant in the case of time-stretched returns. KVGs should specify their investment conditions.
It is becoming increasingly apparent that real estate funds are perceived as particularly viable institutionally in two forms in particular: as very large open-ended vehicles or as closed club structures.
Fund contracts are becoming more and more complex. At the same time, central questions of risk and responsibility are shifting: side letters have become the place where institutional investors try to anchor responsibility where it can no longer be clearly regulated in the contract.
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