Germany: Compliance

The European Parliament has tabled over 1,900 amendments to the Market Integration and Supervision Package, transforming it from a straightforward proposal into a complex negotiation between competing models for European market supervision and infrastructure. As the Commission's original December 2025 proposal becomes obsolete and multiple parliamentary drafts emerge with conflicting visions, financial firms face critical questions about which supervisory architecture will ultimately govern their licenses

Germany's implementation of the EU AI Regulation assigns BaFin as the market surveillance authority for AI systems in financial services, while new guidance clarifies investment product classifications under PRIIPs and establishes transitional rules for ESG rating providers. BaFin also provides supervisory guidance on the Payment for Order Flow ban affecting investment firms and neo-banks.

The EU Packaging and Packaging Waste Regulation (PPWR) became applicable on August 12, 2026, catching many companies off guard during the summer holiday period. With the European Commission releasing crucial FAQs just one week before the deadline, businesses now face immediate compliance challenges including determining their producer status, managing supplier documentation requests, and navigating complex conformity requirements under tight resource constraints.

The Council of the European Union has adopted its 20th and 21st sanctions packages against Russia, marking a fundamental shift in EU sanctions policy. Rather than simply expanding lists of designated persons, these measures systematically target the financial infrastructure—payment channels, banking relationships, crypto-asset ecosystems, correspondent banking, trade finance, and maritime logistics—that enables Russia's war economy.

Die BaFin hat ihre aufsichtlichen Anforderungen an die Nutzung virtueller IBANs verschärft und fordert strengere Compliance-Kontrollen zur Bekämpfung von Geldwäsche und Terrorismusfinanzierung.

German corporate law offers various structuring options for organizing cooperation within corporate groups. While the domination and profit transfer agreement remains the classic instrument...

Herbert Smith Freehills Kramer's Frankfurt Corporate Crime & Investigations team hosted a conference examining cybercrime threats, AI-driven attacks, and the evolving responsibilities of corporate leadership in building cyber resilience. Senior representatives from law enforcement, industry leaders, and global legal partners explored prevention strategies, incident response protocols, and the complex liability landscape facing organizations in an increasingly digital threat environment.

The European Parliament's ECON Committee has published two draft reports on the Market Integration and Supervision Package that significantly expand ESMA's direct supervisory powers...

BaFin has released draft guidance on amendments to Germany's Capital Investment Code (KAGB) following the Fund Risk Limitation Act (FRiG), introducing significant changes to authorization procedures for capital management companies. The circular addresses new requirements for senior managers, including mandatory full-time employment and EU residency rules, while providing grandfathering provisions for existing structures.