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
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.