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MIL OSI Translation. Region: Germany / Deutschland –

Source: Federal Ministry of Finance International / Financial Market

Future-oriented securities supervision – appropriate to the risk and tailored

The Federal Cabinet today passed a draft law to implement Directive (EU) 2019/2034 on the supervision of securities institutions. With this law, we want to strengthen financial stability and position financial market supervision well for the challenges of the 21st century. The planned regulations align the supervision of securities institutions in a risk-adequate and precise manner. In doing so, we take into account the susceptibility of individual business models to risk and the size of the respective securities institutions. To this end, a new law, the Wertpapierinstitutsgesetz (WpIG), is being created. The regulations are designed in such a way that, in proportion to the size of the securities institution, there is more intensive supervision by the Federal Financial Supervisory Authority (BaFin) Notification obligations, supervisory powers of the responsible supervisory authorities, in particular with regard to the solvency of the securities institutions as well as the equity and liquidity requirements, standards for assessing the appropriateness of the internal capital requirements, requirements for the management board and the supervisory bodies of the securities institutions with regard to internal corporate management and regulations on the remuneration policy certain categories of employees of the securities institutions.


EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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