Investment Management - Law and Practice


Course Description:

In this module, it will be discussed how the „product“ investment fund has been developed, primarily through legal and regulatory developments in Europe (UCITS-Directive, AIFMD, MiFID) since 1985 (entering into effect of the first UCITS-Directive). The following aspects will be covered:

  • How the idea of saving through investment funds was born, forms of investment funds (contractual, corporate, trust forms), the „investment triangle“ between investors, management company and depositary, internal vs. external management, 
  • The impact of Markowitz on portfolio management theory, asset classes (debt, equity, real assts, etc., investment styles (value, growth, etc.) effective portfolio management techniques, the importance of leverage
  • UCITS-Directive and AIFMD – an overview
  • Management companies – Licencing procedure, substance requirements, the value chain in investment management
  • Distribution of investment funds – distribution channels, incentives, sales documentation under MiFID and PRIIPS, European passport
  • Portfolio-Management and Risk-Management – Definition, Obligations, Scope
  • Fund administration, Reporting towards investors and authorities, corporate actions, class actions, proxy voting
  • The roles of the depositary (safekeeping, controls, transfer agency, treatment of conflicts of interest)
  • Delegation of functions of the management company and the depositary, audit rights, instruction rights and control rights, letter-box entities
  • Principal-Agent Dilemma, Conflicts of interest at the level of the management company, best execution requirements, order allocation
  • Current developments in investment law: Alternative UCITS, Solvency II, circumventing the broad application of AIFMD, FinTech in Asset Management

Credit Points:



Dr. Conrad Ruppel, Dr. Christian Schmies