BaFin published the updated interpretative guidance on Article 2 of the German Act on ring-fencing and recovery and resolution planning for credit institutions and financial groups—also known as the Bank Separation Act. The guidance has been updated in light of the additional questions that have been raised on implementation of the Bank Separation Act and on application of the interpretative guidance. The issues addressed in the updated version of the interpretative guidance essentially cover the scope of the Bank Separation Act, the determination of thresholds for the subjective scope of application, the scope of the risk analysis, prohibitions and provisions on exemptions from prohibitions, and regulatory provisions for financial trading institutions. BaFin also published a comparative version of the guidance to illustrate the changes made.
The interpretative guidance, which has been jointly developed by BaFin and Deutsche Bundesbank, is designed to help institutions falling under the scope of application of the Bank Separation Act on how to adjust their previously conducted risk analyses in the subsequent compliance process. The interpretative guidance is also intended to assist law enforcement agencies in terms of their legal assessment of matters covered by the Bank Separation Act. To ensure that all institutions have the same information at their disposal, BaFin has now decided to make the interpretative guidance publicly available in the form of general questions and answers. In addition, the interpretative guidance has been divided into modules to make it more user-friendly and to enable BaFin to make subsequent amendments more easily, if required. The updated version replaces the previous version of the interpretative guidance, which was published on December 14, 2016. BaFin will amend this interpretative guidance, if necessary, particularly if the legal framework or supervisory standards change or if such amendments are required due to findings in supervisory practice.
- Press Release
- Interpretative Guidance (PDF)
- Comparative Version of the Guidance (PDF in German)
- Overview of Interpretative Guidance
Keywords: Europe, Germany, Banking, Recovery and Resolution, CRR, Ring Fencing, Bank Separation Act, Resolution Framework, Basel, BaFin
Previous ArticleOSFI Provides Update on Implementation of IFRS 17 in Canada
PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.
SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.
EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.
ECB finalized guidance on the way it expects banks to prudently manage and transparently disclose climate and other environmental risks under the current prudential rules.
BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.
BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.
APRA published the updated reporting standards and guidance for the collection of Economic and Financial Statistics (EFS), following a consultation process. Also published was a response letter to the feedback received on the proposal for amending the EFS reporting standards and guidance.
EC is consulting on a draft delegated regulation to supplement the Taxonomy Regulation (2020/852) by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as environmentally sustainable.
The IFRS Foundation published material highlighting the ways in which existing requirements in IFRS standards require companies to consider climate-related matters when their effect is material to the financial statements.
FSB published a progress report on the implementation of reforms to major interest rate benchmarks, including the London Inter-bank Offered Rate (LIBOR) benchmark.