Newly appointed legal or statutory representatives as well as personally liable partners in the course of a significant participation in an institution report

To ensure that the Federal Financial Supervisory Authority (BaFin) and the Deutsche Bundesbank are informed at an early stage of any significant change in the ownership structure of credit and other institutions in the financial sector, the supervisory authorities must

• of every newly appointed legal or statutory representative or general partner
• or each newly appointed legal or statutory representative or general partner must be informed immediately in writing.

As the owner of a significant shareholding in an institution in Germany, you must include the following in your notification

• the professional suitability and
• reliability

of your legal representatives or personally liable partners for assessment purposes.

This information ("material facts") enables BaFin and the Bundesbank to prevent investment fraud, money laundering and other forms of organized crime. In addition, the procedure serves to protect creditors by ensuring the solvency and functionality of the institutions.

• The supervisory authority may prohibit the holder of a significant shareholding from exercising voting rights and order that the shares may only be disposed of with the consent of the holder,
  • if it is a partnership, also a partner,
  • or a legal or statutory representative, or,
  • or if he or she is a legal entity, also a legal or statutory representative,
• is not reliable, or for other reasons does not meet the standards required in the interests of sound and prudent management of the institution.
• This may be the case if the person responsible lacks the necessary reliability
• or otherwise does not meet the requirements to be made in the interests of sound and prudent management of the institution.