On 24 July, the German Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) has published updated drafts of the Ordinance on the Examination of Investment Services Enterprises (Wertpapierdienstleistungs-Prüfungsverordnung – WpDPV) and of the Securities Trading Act Employee Notification Regulation (WpHG-Mitarbeiteranzeigeverordnung – WpHGMaAnzV). A consolidated Version of the WpHGMaAnzV can be viewed here.
Main content of the WpDPV draft
The draft of the WpDPV contains the requirements which shall be taken into account in the examination pursuant to section 89 German Securities Trading Act (Wertpapierhandelsgesetz – WpHG) as BaFin considers them fundamental to the provision of investment services. In addition, the ordinance contains a questionnaire in which BaFin’s examination results are to be summarised. Amendments are necessary since the schedule of duties on which the examination pursuant to the WpDPV is based no longer arises from national implementing acts and implementing regulations only, but also from directly applicable European regulations.
Main content of the WpHGMaAnzV draft
The amendments to the WpHGMaAnzV mainly provide for the following (ESMA/2015/1886):
- an adjustment of the requirements regarding the competence (Sachkunde) of staff entrusted by the investment services enterprise with the provision of investment advice to the Guidelines for the Assessment of Knowledge and Competence;
- a detailed specification of the new requirements as regards the competence of staff giving information on financial instruments, structured deposits, investment services or ancillary services to clients in accordance with the Guidelines for the Assessment of Knowledge and Competence;
- a detailed specification of the new requirements as regards the competence of staff entrusting investment services enterprises with portfolio management;
- the introduction of an at least annual examination of competence to be carried out by the investment services enterprises and of requirements regarding the acquisition of practical experience in accordance with the Guidelines for the Assessment of Knowledge and Competence and
- a detailed specification of the partly new requirements as to reliability – applicable consistently to investment advisers, sales representatives, financial portfolio managers and sales officers.
In addition, BaFin has published comments on the draft WpDPV and WpHGMaAnzV. A German summary of those comments can be found here.