The amendments made to the 2007 investment law have resulted in a large number of changes. Section 80b of the amended German Investment Act contains detailed implications in particular for real estate fund risk management. Investment companies must use an appropriate risk management system that captures all risks. Further provisions call for:
- a limit to the concentration of risks using a limit system
- a risk early warning process
- the regular review and adjustment of the risk management system
- risk reporting to the management
- the performance of appropriate stress tests
- the organisational separation of portfolio management and risk management
SEB Asset Management has implemented these requirements and strives to continuously improve its risk management system.
