Financial Regulatory News
Financial Regulatory News

Short, hands-on, up to date

Banking Law

Licence requirement for credit service providers – services for non-performing loans now require a licence

When the Secondary Credit Market Act (Kreditzweitmarktgesetz) came into force on 30 December 2023, services relating to non-performing loans, i.e. loans that are no longer being settled or are at risk of default, will require a licence. Companies that already provide credit services today had to register with BaFin in February and state that they will continue to provide these services and now have until April to submit a licence application. A transitional regulation will then apply to them, under which the services can initially still be provided without a licence. In addition, the sale of NPLs by credit institutions [...]

Continue Reading




read more

Update for securities institutions: German Securities Institutions Owner Control Ordi-nance published

On January 15, 2024, the German Securities Institutions Owner Control Ordinance was published in the Federal Law Gazette and thus entered into force today, January 16, 2024.

Owner control procedures for securities institutions

The Securities Institutions Owner Control Ordinance regulates the material and formal requirements for the acquisition of a significant shareholding in a regulated securities institution (so-called owner control procedure).

A significant or qualified shareholding is defined as the direct or indirect holding of shares in a company that represents at least 10% of the capital or voting rights of this company or that otherwise enables the exercise of [...]

Continue Reading




read more

ESG, home office and real estate transactions – BaFin publishes 7th MaRisk amendment

The German Federal Financial Supervisory Authority (“BaFin“) published the seventh amendment to the Minimum Requirements for Risk Management of Banks (“MaRisk“) on June 29, 2023.
The MaRisk codify BaFin’s administrative practice on risk management for German banks, in particular with respect to business organization and outsourcing, and in doing so substantiates the statutory requirements of Section 25a of the German Banking Act (“KWG“).
The amendments range from requirements of the European Banking Authority (“EBA“) for lending and monitoring to exceptions for securities trading in the home office and the managing of ESG and real estate risks.




read more

Stability through regulation

The financial industry is once again facing uncertainty and turbulence, caused in particular by the demise of some banks and problems in the crypto scene. In view of the current regulatory density, the question arises whether this is sufficient to ensure the stability of the financial industry and whether it can actually help to create market security and trust. Renate Prinz classifies the current developments in the Börsen-Zeitung.

Click here to read the full article in [...]

Continue Reading




read more

Amendment of the Owner Control Regulation

On December 28, 2022, the amended “Regulation on Notifications in Accordance with Section 2c of the German Banking Act (Kreditwesengesetz – KWG) and Section 104 of the German Insurance Supervision Act (Versicherungsaufsichtsgesetz – VAG)”, the Owner Control Regulation (Inhaberkontrollverordnung – InhKontrollV, also referred to as Holder Control Regulation by BaFin), became effective. The amendment expands the scope of the documents and declarations to be submitted, but at the same time contains partial relief for the party subject to the notification requirement.

Consideration of the changes to the KWG and the VAG

The amendments to the InhKontrollV take into account the [...]

Continue Reading




read more

The year is drawing to a close – what’s new for 2023?

As the year draws to a close, it is worth taking a look at new regulations at the start of the year: As of January 1, the new Regulatory Technical Standards (RTS) on the EU Disclosure Regulation will apply to financial market participants and financial advisors. With the Disclosure Regulation, which already came into force in March 2021, respective companies must prove how sustainable their products are, the extent to which ESG criteria, i.e. ecological and social standards and good corporate governance, are observed and pursued and which strategies are applied here.

The Disclosure and Taxonomy Regulation applies to financial [...]

Continue Reading




read more

ESG risks & Co. in the 7th MaRisk update

On September 26, 2022, the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – “BaFin“) published an amended draft of its circular “Minimum Requirements for Risk Management” (Mindestanforderungen an das Risikomanagement – “MaRisk“), which is now open for consultation.

MaRisk codifies BaFin’s administrative practice on risk management for German banks, particularly with regard to business organization and outsourcing, and in doing so specifies the statutory requirements of Section 25a of the German Banking Act (Kreditwesengesetz – „KWG“).

The draft of the 7th MaRisk amendment includes, among other things




read more

New BaFin circulars on liquidity standards

In August, BaFin published new circulars on the quantitative liquidity standards of the CRR (Capital Requirements Regulation), which, in particular,

  • address the regulatory treatment of off-balance sheet products in the structural liquidity ratio (Net Stable Funding Ratio – NSFR or “simplified NSFR”) as well as
  • adjust the materiality criteria for annual reporting (Art. 23 of Delegated Regulation 2015/61).

The two circulars are relevant for all institutions to which Article 6 (2) CRR apply and which are classified as “Less Significant Institutions (LSIs)” pursuant to Article 6 (4) SSM Regulation, as well as for all institutions pursuant to Section [...]

Continue Reading




read more

Follow US

CATEGORIES

ARCHIVE