In 2017, BaFin authorised 11 asset management companies (Kapitalverwaltungsgesellschaft) to manage collective investment undertakings or extended their existing authorisation (previous year: 14). 6 companies surrendered their authorisation (previous year: 2). This meant that, at the end of 2017, 136 companies were authorised in accordance with the German Investment Code (Kapitalanlagegesetzbuch) (previous year: 136). In addition, 52 asset management companies (previous year: 50) registered in accordance with section 44 of the Investment Code. 12 companies surrendered their registration, 2 of which applied for authorisation in accordance with the Investment Code. The total number of asset management companies registered as at the end of 2017 stood at 314 (previous year: 260).

BaFin observed a general trend towards consolidation in this sector in 2017. This relates primarily to planned mergers and acquisitions of small and medium-sized asset management companies as well as asset management companies belonging to groups.

In 22 cases, asset management companies established a branch in another EU member state or offered cross-border services (previous year: 11). A total of 53 companies from other EU countries notified BaFin that they had established a branch or started providing cross-border services in Germany (previous year: 25).

Risk-based supervision

BaFin performed 116 supervisory visits and annual interviews on site (previous year: 102). It accompanied 5 audits and special audits at asset management companies as well as at depositaries and trustees (previous year: 13). The frequency of using such measures in a company is mostly determined on the basis of its risk classification (see Table 27 "Risk classification of asset management companies").

Table 27 Risk classification of asset management companies

Risk classification of asset management companies

BaFin

In addition to dealing with negative interest rates in the current interest rate environment and Brexit-related issues, such as investments in the United Kingdom, the supervisory visits and annual interviews conducted in 2017 focused on the following in particular: sustainable and ethical investments, IT security, the impact of cyber risks and climate change on asset management companies and the need for such companies to adapt to legislative changes (for example, the German Investment Tax Act (Investmentsteuergesetz), MiFID II, Benchmarks Regulation).