Germany: Financial Services

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.

Die BaFin hat die finalen WpI MaRisk veröffentlicht, die ab dem 1. Januar 2027 neue Standards für kleine und mittlere Wertpapierinstitute setzen. Die Regelungen zur Compliance-Funktion wurden grundlegend neugefasst und die Auslagerungsanforderungen verschärft, wobei betroffene Institute frühzeitig relevante Anpassungen vornehmen sollten.

The Federal Financial Supervisory Authority (BaFin) has published new Minimum Requirements for Risk Management (WpI MaRisk) specifically designed for small and medium-sized investment firms in Germany. These regulations will introduce significant changes to compliance functions and outsourcing requirements, fundamentally reshaping how these firms manage regulatory obligations and operational risks.

Germany's transition period for Payment for Order Flow (PFOF) has ended, and BaFin has issued detailed supervisory guidance outlining prohibited circumvention structures and expectations for PFOF-free business models. The regulator applies an economic substance test that looks beyond mere form, requiring firms to justify fees in vertically integrated groups and trace orders through intermediary chains back to retail clients.

Der Europäische Gerichtshof hat entschieden, dass Sollzinssätze bei Verbraucherkrediten nur auf den tatsächlich bereitgestellten Kreditbetrag angewendet werden dürfen – nicht auf mitfinanzierte Kreditkosten wie Versicherungsprämien oder Gebühren. Diese Klarstellung hat weitreichende Folgen für Kreditgeber in der gesamten EU, die ihre Produktgestaltung, Preislogik und Kundenunterlagen entsprechend anpassen müssen. Besonders betroffen sind Banken und Anbieter von

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.

The European Banking Authority and New York State Department of Financial Services have signed a groundbreaking Memorandum of Understanding establishing a formal framework for transatlantic supervisory cooperation on stablecoin regulation. This agreement enables structured information exchange, cross-border inspections, and emergency coordination between EU and US regulators overseeing entities engaged in stablecoin activities under MiCAR and New York's regulatory framework.

On 24 April 2026, the Joint Committee (JC) of the three European Supervisory Authorities (ESAs)—comprising the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA)—published its Annual Report for 2025. The JC, chaired in 2025 by EIOPA,1 continued to serve as the central coordinating forum facilitating dialogue and information exchange among the ESAs, the European Commission and the European Systemic Risk Board (ESRB).

The European Securities and Markets Authority has issued a definitive statement clarifying that the MiCAR transitional period expires on 1 July 2026, after which any entity providing crypto-asset services to EU clients without proper authorization will be in breach of EU law. This regulatory deadline represents a fundamental legal transformation of the EU crypto-asset market, affecting business models, contractual relationships, board exposure, and enforcement risk for crypto-asset service providers.