Germany’s Future Financing Act

The Future Financing Act for Germany comes at the right time. Against the backdrop of a dramatically changing business and political climate, it serves to safeguard economic prosperity by promoting private investment, among other things. The paper marks the beginning of the new legislative process.

This paper places particular focus on IPOs and includes a relaxation of the legal framework for Special Acquisition Companies (SPAC) and other, modern forms of equity financing. Start-ups, emerging companies, and small and medium-sized enterprises (SMEs) will be able to strengthen their performance by raising equity capital.

The precise legislative requirements and framework for implementation are still pending. However, the paper indicates that strategic adjustments are now being considered. Whether the law will be successful remains to be seen.

Read more here (German language).

Bernd Geier is a partner focused on finance, regulatory law, and funds. His practice covers the entire spectrum of regulatory issues (compliance), with a focus on the financial sector, including FinTech. He advises clients on financial market regulation, transaction structuring and optimisation, outsourcing law, as well as on new technologies (cryptocurrencies) and sustainability requirements (ESG). Read more here.