Regulation

The Association of Foreign Banks in Germany is changing its name to the Association of International Banks in Germany. But the topics currently on the agenda remain the same – reducing bureaucracy, Capital Markets Union, and national implementation of the EU Capital Requirements Directive.

BNP Paribas wants to expand its current activities with targeted acquisitions such as that of Axa Investment Managers. CFO Lars Machenil discusses the bank's strategy – and points to the obstacles that remain making cross-border consolidation in the European banking sector difficult.

Smaller banks in particular should benefit from simplified rules and less bureaucracy, says Bundesbank board member Michael Theurer. Initiatives for the streamlining of regulations are already underway, or are being explored.

The Germans indulge in a quota obsession, the Americans in a deregulation madness. In the global financial system, however, the latter can cause more damage than the former.

Universal Investment provides services such as setting up and administering management companies (ManCos) for the fund industry. CEO Mathias Heiß discusses its presence in Frankfurt, Luxembourg, and Dublin – and the growing role of AI.

The last coalition government made some changes to what pension providers are allowed to invest in. CMS lawyer Laura Bungart explains the implications of the new quotas for private markets.

Entrepreneur Harald Christ is calling for economic stability from the new government, and setting out more realistic expectations with regard to the speed at which reforms will take effect. Prior to the election, he was the first to call for the subsequently approved 500 billion euro infrastructure package.

Via the Omnibus legislative initiative, the EU is easing sustainability reporting for many companies. Auditors had been expecting a big increase in ESG related business, which is now not materialising.

The EU Commission is proposing significant exemptions from sustainability reporting requirements. The ‘Omnibus‘ initiative has more momentum than previous attempts to streamline bureaucracy.

The EU is considering reversing the mandatory separation of commissions for securities transactions and fees for research – so called unbundling. But industry association DVFA remains sceptical about the details of the rebundling initiative.

A study by recruitment firm Robert Half shows that financial services providers in Germany plan to hire more staff in 2025. Much of the increase is driven by regulatory demands, as well as the digital transformation.

Federal Chancellor Olaf Scholz (SPD) has promised the German finance industry that he will work towards the further rapid development of Capital Markets Union and Banking Union.

Germany can only emerge from its economic slowdown through increased investment. However, many companies are avoiding it as a business location. An Ifo survey highlights the need for reforms, while a recent report from consultants Strategy& points to the dangers of continued deindustrialization.

Private debt is increasingly attracting private investors in fundraising. Their money is tempting, but is the industry really doing itself a favour in the long run?

The building blocks of the Capital Market Union are of great importance to the EU Securities and Markets Authority (ESMA). The head of the authority warns against focusing solely on regulation in the project.