As reported in a previous article, the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) has organized a public hearing on the prohibition of the marketing, distribution and sale of certificates linked to creditworthiness risks (“credit-linked notes” (Bonitätsanleihen)) to retail clients within the meaning of section 31a (3) of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG).

The following pressure groups have submitted committed reasoned opinions on this issue and published them:

The German Derivatives Association (Deutscher Derivate Verband – DDV) strongly argues against the planned prohibition. The opinion can be found here.

The German Banking Industry Committee (Die Deutsche Kreditwirtschaft – DK) which is the voice of the five leading German banking-sector associations (the National Association of German Cooperative Banks (BVR), the Association of German Banks (BdB), the Association of German Public Banks (VÖB), the German Savings Banks Association (DSGV) and the Association of German Pfandbrief Banks (vdp)) published also a detailed opinion against the planned ban of credit-linked notes, which can be found here.

However, also a comment supporting the planned prohibition has been issued by the Federation of German Consumer Organisations (Bundesverband Verbraucherzentrale – VZBV) (here).

BaFin has recently indicated that it will consider banning further financial products from the German retail market; Contracts of Difference (CFDs) and binary options have been mentioned in this regard.