BaFin expanded the authority of its special representative at a Deutsche Finance Group subsidiary, granting management powers to strengthen oversight of an asset manager tied to troubled U.S. real estate investments. The regulator said the move is intended to protect investors and ensure all funds managed by the unit are properly operated. Munich prosecutors searched Deutsche Finance Group offices less than a week earlier in an investigation into German pension fund BVK’s U.S. property holdings;

BaFin expanded the authority of its special representative at a Deutsche Finance Group subsidiary, granting management powers to strengthen oversight of an asset manager tied to troubled U.S. real estate investments. The regulator said the move is intended to protect investors and ensure all funds managed by the unit are properly operated. Munich prosecutors searched Deutsche Finance Group offices less than a week earlier in an investigation into German pension fund BVK’s U.S. property holdings; the firm says it is cooperating. BVK disclosed it may need to write down as much as €853m (~$955m) of roughly €1.6bn invested in projects involving Deutsche Finance Group and developer SHVO, with €392m already written off as of last year-end.