BaFin Issues Circular 12/2026 to Increase Transparency in AIF Management Company Licensing

Key Takeaways

• On September 15, 2026, BaFin published Circular 12/2026, which sets out the licensing procedure for alternative investment fund (AIF) management companies under Section 22 of the German Investment Code (KAGB).
• It replaces the 2013 information sheet and aims to give applicants clearer documentation requirements and faster processing.
• Compliance teams at prospective and existing AIF managers should review the new expectations, especially given the changes that stem from the Fund Risk Limitation Act.

Deep Dive

On September 15, 2026, BaFin published Circular 12/2026, which sets out the licensing procedure for alternative investment fund (AIF) management companies under Section 22 of the German Investment Code (KAGB). It replaces the 2013 information sheet and aims to give applicants clearer documentation requirements and faster processing. Compliance teams at prospective and existing AIF managers should review the new expectations, especially given the changes that stem from the Fund Risk Limitation Act.

BaFin considered industry comments received during consultation, and all submitted comments are available on its consultation website. Some differences between the final circular and the consultation draft result from the Fund Risk Limitation Act (Fondsrisikobegrenzungsgesetz). Teams that reviewed the draft should not assume it matches the final text, and should run a gap analysis against the published version. The release does not describe specific substantive changes, effective dates, or transition arrangements, so these points need to be confirmed in the full circular.

Recommended actions: (1) obtain and review Circular 12/2026 in full, and map its documentation requirements against current or planned applications; (2) retire references to the 2013 information sheet in internal procedures, checklists, and templates; (3) compare the final circular with the consultation draft and BaFin's published responses to identify changes tied to the Fund Risk Limitation Act; (4) for pending applications, confirm with BaFin or legal counsel whether additional or revised materials will be expected; and (5) for existing authorized managers, assess whether the updated expectations affect planned extensions of permission or changes to the business model.

Risk impact: The direct impact is mainly procedural and operational, because incomplete or outdated applications may cause delays or rejections. The indirect regulatory risk is moderate. The Fund Risk Limitation Act-driven adjustments may signal heightened expectations around risk management and governance. Firms planning to launch AIF platforms in Germany should build the new requirements into project timelines and resourcing. Better transparency should lower uncertainty for well-prepared applicants.

Source: Federal Financial Supervisory Authority