German investors are to be allowed to invest in hedge funds for the first time from Janaury. The move has been approved in the German lower house, is expected to be confirmed later this month and enacted early next year.

The Bundestag, the lower house of parliament in Germany, has passed legislation which will make it possible for German investment houses to sell single hedge funds to wealthy individuals for the first time. Funds of hedge funds will also be made available to a broad range of investors.