Report newly appointed legal or statutory representatives and general partners in the course of a significant investment in an institution.

In order 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

• about every newly appointed legal or statutory representative or general partner
• or any newly appointed legal or statutory representative or general partner without undue delay in writing.

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

• the professional suitability and
• reliability

of your legal representatives or personally liable partners for assessment.

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

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