
The financial regulator is taking action at the fund subsidiary of the Deutsche Finance Group to protect the interests of around 50,000 investors.
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Bafin had already sent a special representative in June to request information and documents on the proper administration of the funds.
The financial regulator Bafin makes its special representative managing director of the fund subsidiary of the Deutsche Finance Group in Munich.
Frankfurt. In a drastic step, the financial regulator Bafin is taking action against the Munich fund house Deutsche Finance: The authority is appointing a special representative it has installed as managing director of the fund subsidiary. Bafin announced this on Monday. The aim is to actively protect investor interests and ensure the proper management of all of the company's funds.
The measure affects Deutsche Finance Investment GmbH (DFI) – a capital management company (KVG) that manages 24 public funds under the umbrella of the DF Group as a type of “operating company”. 50,000 private investors have invested around 1.5 billion euros in the funds.
As early as June, the financial supervisory authority felt compelled to send the same special representative. The supervisors wanted to ensure that the DFI provided them with requested information and submitted documents. The Bafin also said at the time that they wanted to “get their own idea of the correctness of the administration of closed-end mutual funds.”
Deutsche Finance explained this in June with different opinions on the scope of information on individual issues. The DFI will support the investigation “comprehensively” and has its own interest “in ensuring that the issues raised are fully clarified.”

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