German Act on the Adjustment of Financial Market Legislation

01/09/2014

Among other things, the Act concentrates on several provisions of the Banking Act, such as the central credit register and corporate governance rules. According to the CRD IV-Transposition Act several essential changes regarding the rules on large exposures will be in effect from 01 January 2015. Due to the Financial Market Adjustment Act this transposition period will be delayed for two years. Especially the lowering of the disclosure threshold, the extension of the relevant credit term and the introduction of new data formats will be subject to the delay. Moreover, rules on the maximum amount of mandates that a management body can exercise at the same time were reviewed and changed.

Finally, requirements for the annual auditor were tightened. For instance, the auditor is required to determine whether his mandate is duly given according to the Banking Act.