GERMANY - The German government has passed new regulations for open real estate funds (OIFs) that will include a minimum two-year holding period.
during the financial crisis, forcing some of them to close.
Once the law is implemented, all new investors in open real estate funds will be subject to a two-year minimum holding period.
However, despite the rule, investors will be able to withdraw sums of up to 鈧�5,000 per month - the average in- and outflow for a typical private investor.
The investment association BVI said: "These new regulations will in effect separate institutional from private investors."
Stefan Seip, managing director at BVI, added: "For private investors, OIFs will remain liquid investments, while institutional investors and people investing larger sums will have to make a longer-term commitment."
The BVI is hoping for further amendments to consumer protection rights regarding OIFs in the parliamentary discussion of the bill.
The association would like to see a separate fund category for large investors and bonuses for non-withdrawals.
In the first seven months of 2010, open real estate funds saw 鈧�2.7bn of inflows, making them one of the most popular investments among Germans, the BVI said.
