The Regulation reflects amendments to the German Banking Act (Kreditwesengesetz – KWG) and the German Insurance Supervision Act (Versicherungsaufsichtsgesetz – VAG) made necessary by the German Risk Reduction Act (Risikoreduzierungsgesetz – RiG) and takes account of the “Joint Guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector” of the three European Supervisory Authorities (ESAs).

In addition, the Regulation rectifies several references to the VAG that have changed since 2016. One example is the reference to section 7 no. 3 of the VAG, which – analogous to the KWG – defines a qualifying holding as a direct or indirect holding equivalent to at least 10 percent of the capital shares or the voting rights of an undertaking or other arrangement in which significant influence can be exercised over the management of the undertaking concerned. Further amendments were necessary because the European Central Bank (ECB), under the Single Supervisory Mechanism (SSM) Regulation, has become responsible for deciding to oppose or not to oppose the acquisition of qualifying holdings in CRR credit institutions.

Companies subject to notification requirements (proposed acquirers) have access to simplifications under section 16 of the InhKontrollV. Proposed acquirers are not required to resubmit documents and declarations they have submitted within the past two years if certain conditions are met, for example if the documents and declarations in question are still valid. Prior to the new Regulation, this period was one year. Moreover, in cases where a holder switches from an indirect to a direct qualifying holding, the extensive exemption from the requirement to submit documents and declarations under subsection 1 is to apply indefinitely; the requirement regarding the submission of a notification will remain in place, however. Under subsection 10, the same is to apply to acquisition transactions within a group.

Proposed acquirers that are group companies will no longer have to enclose a business plan with their notification if their holding in the target entity is solely indirect and they are not the parent company of their group. If, in such a case, the target entity is a financial services institution that solely provides factoring and finance leasing, subsection 12 provides for a complete waiver of other declarations and documents as well.