BaFin FAQs on new IFR/IFD requirements for securities institutions
On 4 May 2021, the German securities regulator, the BaFin published FAQs (in German only) on new requirements for investment firms under IFR/IFD.
On 4 May 2021, BaFin published FAQs on the new requirements for investment firms under IFR/IFD.
From 26 June 2021, the new Regulation (EU) 2019/2033 on the prudential requirements of investment firms (IFR) will apply. At the same time, the German implementation act for the Investment Firm Directive (EU) 2019/2034 (IFD) (WpIG) will also come into force.
Together, the IFR and the WpIG provide the regulatory framework for all activities of small and medium-sized investment firms.
The WpIG covers, for example:
- solvency supervision and supervisory powers,
- authorisation procedures,
- requirements for managing directors and administrative or supervisory bodies and for holders of significant shareholdings, and
- requirements for internal corporate governance.
The BaFin FAQs are the result of remaining uncertainty and the number of questions BaFin received regarding the new regulations in recent months.
BaFin published its views in relation to 15 of the most frequently asked questions including the following:
- reporting obligations under Article 54 (1) of the IFD;
- the scope of application of MaComp, MaRisk , the BAIT and other BaFin publications;
- the concept of a group within the meaning of the IFR;
- whether securities institutions can also provide the crypto custody business.
The published questions and answers will be updated regularly.
Please note that the FAQs are currently only available in German.
If you have any further questions, please do not hesitate to contact us at Simmons & Simmons.
