Understanding the regulatory landscape for crypto-assets in Germany and the EU
Currently, you can read summaries and briefings about the new crypto asset market regulation (“MiCAR”) everywhere. Certainly MiCAR has the potential to give the EU crypto market a huge boost. From what we have seen so far, regulation for new business models, especially in the fintech market, is not as bad as everyone has assumed so far.
Renate Prinz puts the developments in FinExtra in perspective. Click here for the [...]
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McDermottTech 2022 – Recap
From crypto, NFTs and blockchain technologies, to ethics in artificial intelligence, outsourcing and cloud deals, to trends in IP protection and enforcement in the metaverse: Together, we discussed some of the latest global trends in the technology industry at this year’s McDermottTech.
Interested in the content of our panels? Click here for the videos of our panels. You can also download the PowerPoint presentation
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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
- the implementation of the European [...]
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FinTech Market: Regulation of crypto assets in Germany and the EU
In this webinar, Renate Prinz and Annabelle Rau provide an overview of the current regulatory land-scape for crypto assets and crypto service providers in Germany, also taking a look at the European level, where uniform legislation for the regulation of crypto-assets is coming soon. The following fur-ther topics will be covered:
- Regulatory classification of crypto-assets in Germany.
- Licensing requirements in connection with crypto-assets and crypto-services
- Overview of the regulatory requirements for entities regulated in Germany
- Draft European crypto regulation, in particular the Markets in Crypto-Assets Regulation (“MiCAR”).
- Passporting of licenses within the EU [...]
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Article in Libra: EU creates uniform rules for dealing with crypto assets
In their latest article for “Libra – das Rechtsbriefing”, Renate Prinz and Annabelle Rau present the main contents of the new “Markets in Crypto-Assets Regulation” (MiCAR), which the European Council, the EU Parliament and the EU Commission recently agreed on.
Click here to read the entire [...]
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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 [...]
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Expiration of national rules regulating crowdfunding
On November 10, 2022, the two-year transitional period in the European Crowdfunding Regulation (Regulation (EU) 2020/1503 – “ECSP Regulation“) will expire. A authorization under national law (e.g. under the German Banking Act (KWG) or the German Trade Regulation Act (GewO)) will no longer be sufficient from this date. The new uniform European authorization under the ECSP Regulation will be mandatory. The same applies even if there is no cross-border reference.
- The ECSP Regulation serves to foster cross-border crowdfunding services and creates a uniform European framework for this purpose.
- Within its scope of application, it enables the activity of a [...]
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New requirements for investment funds: PRIIPs key information document replaces key investor information – FAQs:
As of 1 January 2023, capital management companies (Kapitalverwaltungsgesellschaften) have to prepare a PRIIPs key information document for an investment fund that is distributed to private and semi-professional investors. The following is a summary of five frequently asked questions and answers on this topic:
What is the purpose of the key information document?
- The key information document shall enable retail investors in the EU to better understand the basic features and risks of PRIIPs (Packaged Retail and Insurance-Based Investment Products).
- In addition, the requirements for PRIIPs key information documents should lead to a better comparability of such products across [...]
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BaFin on the new sustainability exploration in investment advice and financial portfolio management
In a publication dated August 3, 2022, BaFin referred to the now applicable obligation of investment advisors and financial portfolio managers to conduct customer exploration with regard to the sustainability preferences of customers.
- Customer exploration now also includes sustainability factors, which is why the suitability check and declaration is expanded to include the aspect of the customer’s sustainability preference.
- The background is the Delegated Regulation (EU) 2021/1253 of the European Commission, which regulates the inclusion of sustainability factors, risks and preferences in certain organizational requirements and conditions for the operation of securities firms. [...]
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PSD3 on the horizon?
The European Commission is currently consulting on the revision of the Payment Service Directive 2 („PSD2“).
PSD2 regulates uniform EU-wide requirements for payment service providers and the provision of payment services. In Germany, the regulatory requirements of PSD2 are implemented by the Payment Services Supervision Act (“ZAG“).
In this regard, the European Banking Authority (“EBA“) submitted proposals to amend PSD2 to the European Commission in a 126-page opinion on June 23, 2022.
The proposals include:
- Adjustments to the catalogue of payment services, e.g., streamlining and clarification to enable clearer delineation between individual payment services as well [...]
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