Germany's financial regulator BaFin has taken action against the Deutsche Finance Group. Around 50,000 private investors are affected by the measures. The authority is demanding information and documents on closed public funds.
BaFin is sending a representative to the Munich-based investment house and requesting documents on 20 funds with a volume of 1.5 billion euros. Many funds lack current annual financial statements. The authority aims to form its own view on the proper management of the funds.
Around 50,000 investors have placed nearly 1.5 billion euros in the group's real estate and infrastructure projects. Deutsche Finance Group advertises innovative fund strategies on its website and reports a total of seven billion euros in placed equity capital. Investors include pension schemes, private banks, foundations, insurance companies, family offices and pension funds.
BaFin stated on Friday afternoon that DF Deutsche Finance Investment GmbH must provide information and submit documents. The measure is intended to review the management of closed public funds.