Berlin Only a few months ago, the federal government created the conditions for a digitized financial market. With the law on electronic securities (eWpG), for example, it is possible to issue bonds and electronic fund units purely virtually, i.e. without using paper. But it also offers loopholes for dubious investments, warn investor advocates.
Peter Mattil, lawyer and expert in banking and capital markets law, fears that investments that were previously launched as closed funds will in future be packaged as electronic securities. This would enable providers to circumvent transparency regulations – to the detriment of investors, who may no longer be able to identify risks.
When these investments become securities, “they are no longer subject to the Investment Act or the Investment Code,” says Mattil. For example, systems in ships, forests, containers, wagons and renewable energy are affected.
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