BaFin publishes circular on regulatory requirements to the business organization of insurance companies (MaGo)

BaFin published a circular on regulatory requirements on 25 January 2017 for the business organization of insurance companies (Rundschreiben 2/2017 (VA) - “MaGo”). The circular summarizes various minimum requirements which follow from an interpretation of the reformed Insurance Supervision Act (Versicherungsaufsichtsgesetz - “VAG”) and the Commission Delegated Regulation (EU) 2015/35 supplementing Directive 2009/138/EG. The circular covers governance aspects and aims at consolidating universal aspects of the business organization of insurance companies without replicating the requirements of the VAG, the Delegated Regulation or EIOPA’s guidelines. The draft circular particularly explains main terms such as “proportionality” (Proportionalität) or “administrative, management or supervisory body” (Verwaltungs-, Management- oder Aufsichtsorgan) and takes into account first experiences from the supervisory practice with Solvency II. The circular replaces the repealed circular regarding regulatory requirements for the risk management (MaRisk VA) and will apply to German insurance companies governed by Solvency II.

The MaGo is available in German

BaFin consults draft interpretative note on German AIFMs (externe Kapitalverwaltungsgesellschaften) and externally managed German AIFs

BaFin published a draft interpretative note on German external AIFMs in the meaning of Section 17 para on 3 February 2017. (2) of the German Investment Code and externally managed German AIFs. The draft interpretative note covers the scope of functions and competences of the AIFM in contrast to the AIF it manages. It discusses the different areas of competence for the AIFM and the AIF (especially with regard to the areas of portfolio management, risk management, administrative activities and marketing). The draft circular furthermore illustrates in whose name the AIFM acts (in its own name or in the name of the AIF) when it enters into agreements with third parties within the scope of its competence and it also deals with the delegation of the AIFM’s activities to the AIF.

The deadline for the consultation period of the circular will end on 3 March 2017.

The draft note is available in German

BaFin publishes draft remuneration ordinance for credit institutions

BaFin published an updated draft remuneration ordinance on 19 January 2017 for credit institutions which will probably become effective as of 1 March 2017. The ordinance is based on the EBA Guidelines on a sound remuneration policy which have been in force since 1 January 2017. The rationale of the ordinance is to outline the different types of remunerations and to further differentiate the requirements of the various forms of variable remuneration. Further key topics include the specification of risk adjustment, along with clawback clauses, which will enable the recovery of variable compensation components already paid and remuneration strategies for groups of companies, including their risk takers.

The draft ordinance is available in German

Investment statistics as of 31 December 2016

The German Investment Fund Association BVI in February 2017 has issued its latest investment statistics report dated October 2016, providing an overview of the net assets and net sales within the German investment fund and asset management markets. The statistics are broken down by asset class and provider. They provide information on net assets and net inflows of investment funds and assets outside investment funds.

The BVI furthermore states that Corporate Bonds cover the highest percentage of asset classes in Spezialfonds (about 27% of total assets).

The statistics are available here