In capital markets law, the lawyers at our law firm offer you competent support. We advise you on capital markets law, banking law and general investor protection.
Capital market law covers topics arising in the course of business relations between financial service providers and private and business customers.
Other aspects of banking and capital markets law concern the legal relationships between state institutions responsible for controlling the banking sector and credit institutions.
In capital market law, legal issues are clarified for activities on the financial market for medium and long-term capital investments. Since banks and savings banks act as providers and intermediaries between capital providers and capital borrowers, there are certain overlaps between capital market law and banking law.
For private investors, medium-sized companies, family offices, institutional investors and local authorities there is an increased need for advice in capital markets law, particularly in the following areas.
- Investment fraud
- Equity funds
- Container funds
- Energy Fund
- Aircraft fund
- Grey capital market
- Profit participation rights
- closed-end funds
- Hotel and holiday parks
- hedge funds
- Investment law
- Representation of interests
- Real estate fund
- Bearer bonds
- Investment law
- Life insurance funds
- Leasing fund
- Media Fund
- Subordinated loans
- open-end fund
- Private equity fund
- Partiaric loans
- Ship funds
- Ship investments
- Protection Association
- Scrap real estate
- Tax-saving real estate
- Telephone fraud
- Engine Fund
- Environmental FundShareholdings
- Asset management and custody
- Investments in securities
- Securities business
Important legal aspects of capital markets law also arise in connection with commercial and corporate law.
Capital Markets Law Definition
Capital market law concerns the issue and trading of and in securities. This includes shares, bonds, debt securities and mortgage bonds. It also covers promissory notes, derivatives, option rights and other tradable securities acquired for investment purposes.
Various financial instruments may be used for funds. Typical funds include ship funds, real estate funds, media funds, money market funds, funds of funds, equity funds and bond funds. Investors have the opportunity to acquire investment certificates in the form of shares.
Small and medium-sized companies should also seek targeted advice in the event of failed investment transactions and in the event of liability risks in asset management.
The structuring of corporate financing, e.g. mezzanine financing, can raise complex legal and economic issues of capital market law.
Capital Markets Law – Lawyer
Open-end funds are the classic form of investment funds. The investment company can issue any number of fund units. These can already be purchased at relatively low investment amounts and can later be sold again at the current redemption price.
This makes it feasible to spread investments over various companies and investments with manageable effort. The overall risk can also be limited in this way.
Investors are protected by the German Investment Companies Act (KAAG). A fund management team with experienced specialists must therefore follow clearly defined investment guidelines.
Closed-end funds are set up to raise capital for large-scale projects. Examples are real estate, media or tangible assets. As a rule, investors must invest a relatively large amount as a minimum investment.
When the fund is launched, the specific investment objectives and the targeted capital gain are defined in detail. Once all units have been sold, the fund is usually closed for a period of ten to 20 years.
Units are repaid by dissolving a fund, for example by selling the investment object. Earlier redemption is not possible for you, or only at considerable losses.
Laws in Banking and Capital Markets Law
The following laws contain important standards in banking and capital market law or contain supplementary regulations:
- Stock Exchange Law
- New investment law – InvG
- Prospectus regime according to the Sales Prospectus Act and WpPG
- Law of corporate takeovers of listed stock corporations
- German Banking Act – KWG
- Act on the Tracing of Profits from Serious Crime (Money Laundering Act – MLA)
- Stock Corporation Act – AktG
- German Commercial Code – HGB
- Criminal Code – StGB
- Small Investor Protection ActKleinanlegerschutzgesetz
Many ordinances, statutes, guidelines, administrative regulations, notices (e.g. of the Federal Financial Supervisory Authority – BaFin) and general terms and conditions (e.g. special terms and conditions for securities transactions) provide a more detailed regulation.
An important area of capital market law is regulated by the German Securities Trading Act (WpHG). There you will find standards on the topics of insider trading, market manipulation, disclosure obligations and special duties of conduct for securities service companies.
The following guidelines, laws and regulations are among the current topics of banking and capital market law:
- Risk Limitation Act with new regulations on the security land charge
- MoMiG – Act to Modernise the Law on Private Limited Companies and Combat Abuses
- Amendment of the German Bond Act (SchVGEG)
- General terms and conditions of banks
- Implementation of the Single Euro Payments Area (SEPA)
- Investment loans (LMA standards)
- Financial Markets Directive (MiFID)
- Payment Services Directive
- Consumer Credit Directive
- Market Abuse Directive
- Transparency Directive
False Advice and Compensation
The regulations in banking and capital market law impose certain obligations when advising customers. Investors naturally expose themselves to many risks in their investments. Investment law therefore imposes legal restrictions and obligations when securities are traded on the stock exchange.
Information must be provided on commission payments and reimbursements. In the event of incorrect advice and other infringements, investors can sue advisors and institutions for damages. An example of this is claims for damages in the event of incorrect advice with regard to legal infringements in the sale of so-called scrap real estate.
In cases of insider trading or price manipulation, banking and capital market law provides for not inconsiderable criminal law consequences.