Brexit: BaFin informs foreign banks

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In the weeks leading up to the workshop, many institutions had already contacted BaFin to find out about regulatory and supervisory issues in Germany. Brexit will cause a fundamental change in the legal framework for the banks.

Today's event focused on, for example, questions of risk management, compliance requirements under the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG), requirements for internal models, rules governing large exposures, provisions on recovery planning and various aspects of the authorisation procedure pursuant to the German Banking Act (Kreditwesengesetz – KWG) and the Markets in Financial Instruments Directive (MiFID).

Deputy Chief Executive Director of Banking Supervision, Dr Peter Lutz, said after the meeting: "As committed Europeans, we do not see Brexit as a reason to celebrate. But now we need to take a pragmatic approach and offer institutions the necessary supervisory clarity for their strategic decisions." BaFin was doing this to give institutions wishing to move their business to Germany a reliable basis for their activities, but also to avoid any risks arising for the German financial sector, Lutz added. In this respect, he saw a special role for BaFin as the integrated German financial supervisor, since it monitors the whole of the financial market. "BaFin is also pleased to continue as a point of contact in the future".