Review of control requirements for supervisory boards at institutions

Practical Law UK Legal Update 0-504-0703 (Approx. 2 pages)

Review of control requirements for supervisory boards at institutions

by Sandra Pfister and Ingrid Kalisch , Simmons & Simmons

Published on 30 Nov 2010 • Germany

This article is part of the PLC Global Finance November 2010 e-mail update for Germany.

BaFin discusses amendments to its leaflet (Merkblatt) pertaining to control of members of supervisory boards at institutions published on 22 February 2010.

In response to "negative experience" with its leaflet (Merkblatt) pertaining to control of members of supervisory boards at institutions published on 22 February 2010, the Federal Financial Supervisory Authority (BaFin) has recently held a conference and discussed the following anticipated amendments:

Use of the instruments relating to the setting of priorities of audit contents (cf. section 30 of the German Banking Act – KWG) and, potentially, those relating to notification obligations/special audits (cf. section 44 KWG) also in respect of supervisory board members at institutions.
The regulatory means relating to increased equity and liquidity buffers are to be applied pre-emptively, that is, even before the relevant legal thresholds have been breached.
With regard to internal governance, the CEBS Guidebook of 13 October 2010, the contents of which are likely to be implemented into German law with only minor modifications by 30 September 2011, will be authoritative. The paper is in consultation until 14 January 2011.
Introduction of rules on whistle blowing.
Review of the Ordinance of Notifications (AnzV) in relation to criminal offences and conflicts of interest due to economic amalgamation (for example; loans to board members).

Presentations of the related BaFin event are available for download at the BaFin website.

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