Abstract
The new Investment Act came into force in Germany as a part of the new German Investment Modernisation Act on 1st January, 2004. This paper focuses on the provisions of the new Investment Act, which allows the establishment and distribution of hedge funds in Germany for the first time. It begins with a brief introduction regarding the contents of the Investment Modernisation Act and continues with a summary overview of the regulatory framework for hedge funds under the new German investment law. In particular it adresses the new legislative structure provided for hedge funds and the requirements for the establishment of domestic hedge funds and the public distribution of domestic and foreign hedge funds under the new Investment Act.
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