Europe: Finance and Banking

Germany's financial regulator Bafin has published new risk management requirements specifically designed for small and medium-sized investment firms, marking a significant shift from the previous practice of applying credit institution rules. The WpI-MaRisk framework, effective January 2027, provides tailored supervisory expectations that better align with the unique characteristics and business models of investment firms. Investment firms now face the critical task of conducting gap analyses and restructur

The disclosure of significant shareholdings in listed companies forms a cornerstone of a transparent Swiss capital market, with participation derivatives also subject to reporting obligations alongside shares. When rolling participation derivatives—replacing expiring options with new ones without crossing a threshold under Art. 120 Para. 1 FinfraG—a critical question arises: does such a transaction trigger a reporting obligation, either due to a "hypothetical" threshold crossing or due to change

Germany is implementing a stricter licensing regime for consumer credit brokers starting November 2026, requiring proof of expertise and prohibiting sales-based compensation. The new rules expand requirements for intermediaries while exempting small and medium-sized enterprises that finance their own sales, fundamentally reshaping how credit brokerage operates in the German market.