German fin. services regulator bars Atlantic Global, Five Winds

ISC Bank

Germany’s financial services regulator, BaFin, has ordered Atlantic Global Asset Management (AGAM) and Five Winds Asset Management, Cape Verde, to cease their investment management activities immediately.

BaFin said in a statement that these companies offer “suitcases” or complete “portfolios” via the websites and and via a network of agents, some of which are domiciled in Germany. They claim that their investors share in the performance of these products. A clear investment strategy is not evident. The investors themselves do not make any decisions as to which financial instruments their money is invested in.

Atlantic Global Asset Management and Five Winds Asset Management therefore engage in investment management activities within the meaning of section 1 (1a) sentence 1 no. 11 of the German Banking Act (Kreditwesengesetz – KWG). However, they do not hold the authorisation required under section 32 (1) of the KWG. They are therefore conducting unauthorised business.

The regulator said the notices are immediately enforceable but not yet final.

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