Clifford Chance

New German ownership control regime creates more onerous obligations in financial institutions M&A

15 July 2021

On 11 June 2021, the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, "BaFin") closed its consultation to proposing substantial amendments to the German Ownership Control Regulation (Inhaberkontrollverordnung, "InhKontrollV"). These amendments mainly serve to implement the Joint Guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector published by the European Supervisory Authorities on 20 December 2016 ("Joint Guidelines")[1] and to make further technical adjustments driven by recent changes to the German Insurance Supervision Act (Versicherungsaufsichtsgesetz, "VAG") and in the German Banking Act (Kreditwesengesetz, "KWG"). This briefing summarises the key changes which affect in particular investments by sovereign wealth, private equity and hedge funds as well as by investors from third countries outside the European Economic Area intending to acquire a qualifying holding in a credit institution, financial service institution, insurance or re-insurance undertaking or pension fund ("Regulated Entity").

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