German Bank Separation Act
Reprint：https://www.bafin.de
06.08.2020 | Topic Risk management
On 6 August 2020, BaFin published an updated version of the interpretative guidance on Article 2 of the German Act on Ringfencing and Recovery and Resolution Planning for Credit Institutions and Financial Groups (Gesetz zur Abschirmung von Risiken und zur Planung der Sanierung und Abwicklung von Kreditinstituten und Finanzgruppen); also known as the Bank Separation Act (Abschirmungsgesetz). The updated version replaces the previous version of the interpretative guidance, which was published on 14 December 2016.
The interpretative guidance has been updated as many additional questions have emerged regarding the implementation of the Bank Separation Act and the application of the interpretative guidance previously issued. 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 now been divided into modules. This makes it more user-friendly and enables BaFin to make subsequent amendments more easily if required.
The consultation on the updated version of the interpretative guidance has led to further amendments. BaFin has also published a version of the guidance which illustrates the changes that have been made (only available in German).
The interpretative guidance does not release the institutions from the obligation to clearly and comprehensively document the identification of business activities that may be prohibited and to independently subsume such business activities under the applicable prohibitions. The institutions are required to exercise due care when doing so; otherwise, they risk facing prosecution.
An English translation of the updated version of the interpretative guidance has also been published for information purposes. However, it should be noted that only the original German version of the interpretative guidance is binding.
First, please LoginComment After ~