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Prohibition of Participation in a Boycott in Foreign Trade Law - Obstacle for Fund Investments by German Investors?

Original: “Verbot der Beteiligung an einem Boykott im Außenwirtschaftsrecht – Hindernis für Fondsinvestments deutscher Investoren?”

In the context of fund subscriptions, investors are regularly required to submit to certain (foreign) sanctions regimes. This submission may be in conflict with so-called anti-boycott regulations. This results in an almost unresolvable situation for the fund investor: without submission to the sanctions regime, the fund would regularly not be subscribed to - with submission, there is a violation of foreign trade law that is penalized as an administrative offense. In addition to the scope of application of Section 7 AWV and Article 5 Blocking Regulation, the article presents a proposal by Philipp Ahlers and Maurice Ribak for resolving the tension in the context of fund subscriptions.

in: RdF Recht der Finanzinstrumente, 04/2022, 1November 14, 2022
Authors: Dr. Philipp Ahlers, Dr. Maurice Ribak
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