The Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin, German Federal Financial Supervisory Authority) has ordered that the special representative appointed at DF Deutsche Finance Investment GmbH in June 2026 will henceforth perform the duties and exercise the powers of a managing director. The financial supervisory authority announced this on 9 November 2026.
These expanded powers are intended to enable the special representative to actively safeguard investors’ interests and ensure the proper management of all funds managed by the asset management company.
Previous Order of June 2026
By order dated 9 June 2026, BaFin had already required DF Deutsche Finance Investment GmbH to provide the supervisory authority with information and submit documents. BaFin also appointed a special representative to monitor compliance with this order.
According to information provided by BaFin, the expansion of the special representative’s powers that has now been ordered is based on the findings obtained in this context as well as the evaluation of further fact-finding measures and audit results. The role, which had previously been limited to monitoring, has been replaced by the authority to actively assume management responsibilities.
Decision-Making Powers in Fund Management
Under BaFin’s order, the special representative will now be able, in particular, to make decisions concerning the management of the company’s retail investment funds. His powers also extend to other areas of management assigned to him.
Measures to Protect Fund Assets
As part of his new responsibilities, the special representative may take measures himself in relation to the assets of the funds managed by DF Deutsche Finance Investment GmbH. He is also authorised to enforce proper business operations in the interests of investors.
The responsibilities expressly identified by BaFin include, in particular:
- The special representative may make decisions concerning the management of the company’s retail investment funds.
- He may make decisions in other areas of management assigned to him.
- He may initiate measures relating to the assets held by the funds.
- He may work towards the completion of outstanding annual reports.
- He may assert any claims against third parties.
The order applies exclusively to DF Deutsche Finance Investment GmbH. The company is a subsidiary of DF Deutsche Finance Holding AG, which belongs to Deutsche Finance Group.
Order Is Immediately Enforceable
The measure imposed by BaFin is not yet final. However, it is immediately enforceable. This means that the special representative may perform his expanded duties and exercise his expanded powers even though the order has not yet become final.
The regulatory measure and its immediate enforceability must be distinguished from a final decision on whether it will remain in effect. BaFin did not provide any further information in its announcement regarding the subsequent course of the proceedings.
Supervision Under the Kapitalanlagegesetzbuch
DF Deutsche Finance Investment GmbH is an asset management company and is therefore subject to the provisions of the Kapitalanlagegesetzbuch (KAGB, German Investment Code). BaFin monitors compliance with these statutory requirements.
Transfer of Managing Director Powers
To enforce regulatory requirements, BaFin may issue appropriate and necessary orders. This also includes the option of appointing a special representative and transferring to that representative the duties and powers of a managing director of an asset management company.
According to BaFin, such a transfer may be considered if the supervisory authority determines that stronger management powers are necessary to avert risks to the assets under management. In the present case, the authority has therefore significantly expanded the role, which had previously been limited to monitoring, and enabled the special representative to actively participate in the management of the company.
Capital Markets Law Considerations for Investors
Regulatory intervention in the management of an asset management company may raise numerous questions for investors and other stakeholders regarding fund management and the safeguarding of asset-related interests. MTR Legal Rechtsanwälte advises clients on the relevant issues. Further information is available under Legal Advice on Capital Markets Law.
