Wealth Management in Germany

The German wealth management market

Germany is a wealthy country that has made a good recovery after the financial crisis and whose citizens want to and can afford to save money. The German banking system also continues to attract money from abroad which helps the wealth management market in the country to continue its expansion. Wealth markets in Germany are divided between the private and the public sector. Wealth management companies in Germany attract households worth over 1 million euros on an annual basis.

There are four categories of players on the German wealth market:

• - the three- pillar German banking system,
• - German asset managers affiliated with large banks,
• - independent asset managers,
• - family offices.

Wealth management services in Germany

Both small and large German companies provide wealth management services. The main business models employed by German companies providing wealth management services are private banks and brokers. However, independent asset managers also play an important on the German wealth management market.

Among the wealth management services provided for clients in Germany there are:

• - financial planning,
• - investment portfolio management,
• - estate planning,
• - asset management.

Our law firm in Germany offers customized wealth management services.

Investment funds in Germany

Investment funds represent an important tool in wealth management in Germany. In 2011, the investment funds industry in Germany has undergone significant changes. Among these the harmonization of the German investment sector with the EU sector through Directive 2009/65/EC referring to collective investment in transferable securities (UCITS) is the most important. These changes were made thanks to the growing number of enterprisers interested in German investment funds. If in 2007 only 30% of German households held investment funds as a wealth management tool, by 2010 the percentage doubled.

Among the most popular investment funds in Germany there are:

• - retail funds that can be open-ended or closed-ended retail funds,
• - foreign retail funds that can be EU or non-EU funds,
• - hedge funds.

Each investment fund is subject to certain tax treatment in Germany.

 We invite you to contact our German lawyers for information about all available wealth management tools.