| January | - BaFin publishes "Circular 01/2017 (WA) – Minimum requirements for the risk management of asset management companies" (Mindestanforderungen an das Risikomanagement von Kapitalverwaltungsgesellschaften – KAMaRisk)
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| February | - "Circular 2/2017 (VA) – Minimum requirements under supervisory law on the system of governance of insurance undertakings (Mindestanforderungen an die Geschäftsorganisation von Versicherungsunternehmen – MaGo)" enters into force. In this document, BaFin has collated its guidance on key aspects of governance in insurance undertakings.
- BaFin publishes the WpHG Administrative Fine Guidelines II. The amendment was triggered by stricter sanctions introduced by European legislators. The guidelines apply to certain violations in connection with ad hoc disclosures, voting rights notifications and financial reporting.
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| March | - The European Central Bank (ECB) publishes its "Guidance to banks on non-performing loans".
- The European Commission presents the Retail Financial Services Action Plan, which is aimed at increasing competition among providers, lowering prices and providing greater choice and better security for consumers.
- The UK's permanent representative to the EU, Sir Tim Barrow, hands the letter declaring the United Kingdom's intention to leave the EU to the President of the European Council, Donald Tusk. Under Article 50 of the Treaty of the European Union, this triggers the start of a two-year process in which London and Brussels negotiate the terms of the separation and their future relationship with each other.
- The technical standards supplementing the European Central Securities Depositories Regulation (EU) 909/2014 are published. They enter into force on 29 March 2017.
- 26 regulatory technical standards (RTSs) supplementing the Markets in Financial Instruments Directive, MiFID II, are published in the form of delegated acts in the Official Journal of the European Union. In addition, three delegated acts, "MiFID II Delegated Directive (EU) 2017/593", "MiFID II Delegated Regulation (EU) 2017/565" and "MiFIR Delegated Regulation (EU) 2017/567" are published in the Official Journal.
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| April | - BaFin publishes a circular on the requirements for the use of video identification procedures. The security level has been increased; in addition, the procedure can now be used by all entities obliged under the Money Laundering Act (Geldwäschegesetz) that are subject to supervision by BaFin.
- BaFin and the Deutsche Bundesbank launch a survey of 1,555 German credit institutions on their results of operations and resilience in the low interest rate environment.
- In parallel, the European Central Bank (ECB) conducts a profitability review among a small number of German institutions.
- The European Commission publishes the Delegated Regulation (EU) 2017/653 laying down regulatory technical standards with regard to the new key information document for packaged retail and insurance-based investment products (PRIIPs) in the Official Journal.
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| May | - The ECB publishes its Guide to fit and proper assessments of members of the management bodies of the significant credit institutions.
- The insurance undertakings subject to the Solvency II supervisory regime publish their first Solvency and Financial Condition Reports (SFCRs) and transmit to BaFin the Regular Supervisory Report (RSR) as well as the Quantitative Reporting Templates relating to the past financial year.
- The International Accounting Standards Board (IASB) publishes the final International Financial Reporting Standard 17 (IFRS 17 – Insurance Contracts).
- By way of a general administrative act, BaFin imposes restrictions on the marketing, distribution and sale of contracts for difference (CFDs). Pursuant to this act, CFDs with an obligation to make additional payments are prohibited as from 10 August 2017.
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| June | - As a consequence of the first resolution decision taken under the Bank Recovery and Resolution Directive (BRRD), the Single Resolution Mechanism (SRM) transfers Banco Popular Español to the Santander Group. At the beginning of June, the SRM had deemed the bank "failing or likely to fail".
- Banca Popolare di Vicenza and Veneto Banca are also classified as "failing or likely to fail", but they are resolved in accordance with Italian law.
- As at 30 June 2017, small German institutions also have to report financial information on a quarterly basis under the ECB Regulation on Reporting of Supervisory Financial Information. The ECB had amended this Regulation to that effect.
- The European Commission presents its proposal of a framework on a pan-European personal pension product (PEPP).
- The Securities Trading Act (Wertpapierhandelsgesetz) is amended. For example, BaFin is given the right to search premises in connection with violations of the prohibition on insider trading and market manipulation. In addition, provisions are put in place stipulating that violations of the prohibition on insider trading and market manipulation committed up to 1 July 2016 must be pursued in accordance with the law applicable at the time of the crime.
- BaFin completes its market investigation into payment protection insurance policies and identifies shortcomings in this process. It publishes the findings of its study, during which it surveyed 30 insurers and 31 banks, on its website on 21 June 2017.
- At just under €1 billion, the initial public offering of the start-up company Delivery Hero AG is the largest IPO of the year.
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| July | - The Basel Committee on Banking Supervision (BCBS) publishes the consultative document "Capital treatment for simple, transparent and comparable short-term securitisations". Together with the International Organization of Securities Commissions (IOSCO), it also publishes the consultative document "Criteria for identifying simple, transparent and comparable short-term securitisations".
- Together with the Deutsche Bundesbank, BaFin conducts a survey of all German institutions on the potential economic impact of cum/cum transactions.
- The Act Implementing the Second Payment Services Directive (PSD2) (Gesetz zur Umsetzung der Zweiten Zahlungsdiensterichtlinie) is promulgated in the Federal Law Gazette. The act transposes into German law the European legal provisions for non-cash payments in the European single market.
- The European Commission publishes guidelines on the PRIIPs Regulation, which are intended as non-binding interpretive guidance.
- The Act Implementing the Insurance Distribution Directive (IDD) and Amending Other Acts (Gesetz zur Umsetzung der Versicherungsvertriebsrichtlinie und zur Änderung weiterer Gesetze) is promulgated. It enters into force on 23 February 2018.
- The Act to Strengthen Occupational Pensions (Betriebsrentenstärkungsgesetz) is adopted. It creates the option of providing pure defined contribution schemes, under which employers are only obliged to pay contributions.
- BaFin publishes an analysis of the insurance undertakings' annual figures and Solvency and Financial Condition Reports (SFCRs) on the first financial year under Solvency II. All single entities subject to the reporting obligation meet the new capital requirements.
- The European Banking Authority (EBA) publishes the results of its second study on the effects of IFRS 9 (Financial Instruments).
- The new EU Prospectus Regulation enters into force. With few exceptions, the Regulation will apply from 21 July 2019. Certain exceptions for admitting securities to trading on a regulated market have already been applicable since 20 July 2017.
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| August | - Following a consultation and preparatory phase lasting several months, the amended Remuneration Regulation for Institutions (Institutsvergütungsverordnung) enters into force.
- BaFin publishes two documents for consultation: the draft of a regulation on the minimum requirements for recovery plans for institutions and investment services enterprises (Rechtsverordnung zu den Mindestanforderungen an Sanierungspläne für Institute und Wertpapierfirmen – MaSan Regulation) and the draft of a guidance notice on recovery planning.
- BaFin sends a questionnaire to all German insurers and Pensionsfonds – with the exception of funeral expenses funds – to get an overview of how they deal with cyber risk.
- An amendment to section 13 of the Capital Investment Act (Vermögensanlagengesetz) introduces a formal approval process and new content requirements for capital investments information sheets. The new regulations apply to both capital investments information sheets submitted together with a prospectus and capital investments information sheets where the public offer can be made without a prospectus, especially in connection with crowdfunding.
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| September | - The EBA publishes a discussion paper on the significant risk transfer in securitisation.
- The EBA and the European Securities and Markets Authority (ESMA) publish joint guidelines to assess the suitability of members of management bodies and key function holders.
- The EBA publishes revised guidelines on internal governance.
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| October | - BaFin publishes the fifth round of amendments to the Minimum Requirements for Risk Management (Mindestanforderungen an das Risikomanagement – MaRisk) for institutions.
- The guidelines of the Joint Committee of the three European Supervisory Authorities on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector have been applicable since the beginning of October.
- As part of a G20 initiative to strengthen supervision and regulation of the shadow banking system, the Basel Committee on Banking Supervision publishes guidelines on identification and management of step-in risk.
- The ECB publishes the results of its stress test, in which the significant institutions (SIs) had to simulate different interest rate scenarios.
- As a result of the elimination of the signature requirement, BaFin ceases to accept hard-copy securities prospectuses on 21 October 2017.
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| November | - BaFin publishes the Supervisory Requirements for IT in Financial Institutions (Bankaufsichtliche Anforderungen an die IT – BAIT).
- The EBA publishes the methodology for the 2018 EU-wide stress test.
- The German Federal Constitutional Court (Bundesverfassungsgericht) rules on the federal government's obligation to respond to parliamentary questions on financial market supervision. The court declares that, if there are justified grounds for maintaining confidentiality, the parliamentary right to information, which requires a response to be given in public, can be restricted in exceptional circumstances to the extent that the corresponding questions are not answered in public by applying the Bundestag Rules on Confidentiality.
- BaFin authorises Eurex Clearing AG to add the clearing of OTC FX derivatives to its range of services.
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| December | - Regulation (EU) 2017/2402 laying down a general framework for securitisation is published.
- BaFin abolishes the Country Risk Regulation (Länderrisikoverordnung) and amends the Regulation Governing Large Exposures and Loans of €1 Million or More (Großkredit- und Millionenkreditverordnung – GroMiKV) with effect from 1 January 2018.
- The reforms of the global Basel III framework are completed. Among other things, an output floor is agreed for users of internal models.
- Regulation (EU) 2017/2395 amending Regulation (EU) No 575/2013 as regards transitional arrangements for mitigating the impact of the introduction of IFRS 9 on own funds and for the large exposures treatment of certain public sector exposures denominated in the domestic currency of any member state is published.
- BaFin revises its decision criteria for appointing IT specialists to the management board.
- BaFin consolidates the revised Financial and Internal Capital Adequacy Information Regulation (Verordnung zur Einreichung von Finanz- und Risikotragfähigkeitsinformationen).
- BaFin amends the Liquidity Regulation in order to nullify the national reporting requirements on liquidity for CRR institutions in line with European requirements.
- The delegated acts supplementing the EU Insurance Distribution Directive are published in the form of regulations in the Official Journal of the European Union. They relate to product oversight and governance (POG) requirements and conduct of business rules for the sale of insurance-based investment products. The focus is on issues related to conflicts of interest, distribution incentives as well as suitability and appropriateness.
- The European Insurance and Occupational Pensions Authority (EIOPA) publishes its report on the Europe-wide stress test for institutions for occupational retirement provision (IORPs).
EIOPA publishes the report on long-term guarantee (LTG) measures and on measures on equity risk under Solvency II. - BaFin publishes guidelines for liquidity stress tests of German asset management companies.
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