Consultation of the guidance notice for managing directors – The main focus is on material requirements

Part of the European harmonisation process is the development of uniform requirements concerning the managing director. They are also the key aspect of the consultation of the guidance notice of the Financial Supervisory Authority (BaFin) of 19th January 2015. There are some modifications:

Structural:

BaFin drafted separated guidance notice for the scope of the Banking Act (Kreditwesengesetz), the German Payment Services Supervision Act (Zahlungsaufsichtsgesetz) and the Investment Act (Kapitalanlagenschutzbuch) and a separate guidance notice for the Insurance Supervision Act (Versicherungsaufsichtsgesetz). Hence BaFin expects a more clear structure.

Forms:

Prospectively forms are enclosed to the guidance notice (concerning personal statements, ancillary activities, changes and participations). In BaFin’s opinion this should need to a simplification of the whole process. This new approach should be a helpful support, especially for the preparation of documents, information and declarations.

Material requirements:

BaFin takes special considerations on the material requirements of the managing director. The material requirements play a major role especially competence, reliability and multiple mandates of the managing director. Until now there has been only an indication of material requirements in relation to the Insurance Supervision Act. In addition applicants needed to receive more material requirements on the basis of secondary literature. In our opinion, including material requirements into the guidance notice simplify the process for the applicant. At the moment it is not possible to estimate what the consequences are for the supervisory authority practices in relation to approval and notification procedures.

BaFin will publish the final guidance notice soon.

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