The BRUBEG reform significantly expands governance requirements within regulated institutions. In this episode of Alles Legal – Fintech-Recht kompakt, Dana Wondra from Payment & Banking speaks with Renate Prinz, Partner at Annerton and PayTechLaw author, about the broader scope of Fit-and-Proper assessments and what this means for banks in practice.
Table of Contents
BRUBEG raises governance standards
The reform extends supervisory expectations beyond management bodies and supervisory boards. Going forward, key function holders will also be subject to increased regulatory scrutiny.
Fit-and-Proper requirements for key function holders
Functions such as Compliance, Risk Management and Internal Audit will become increasingly important from a supervisory perspective. As strategic and operational decisions are often prepared at this level, regulators expect institutions to ensure that these individuals possess the necessary professional qualifications and personal integrity.
New notification obligations
Significant institutions will have to notify BaFin up to 30 working days before appointing certain key function holders. Additional supervisory questions may further extend the process, making early recruitment planning essential.
Ongoing assessments become mandatory
Fit-and-Proper assessments will no longer be limited to the initial appointment. Institutions will need to conduct continuous assessments, documenting professional development, potential conflicts of interest and any other relevant changes affecting suitability.
Practical recommendations
Renate Prinz recommends that institutions identify all relevant key functions, review their governance framework and establish standardised appointment, documentation and ongoing assessment processes as early as possible.
About this podcast
Alles Legal – Fintech Recht Kompakt delivers sharp, weekly insights into legal and compliance matters in the world of banking. (in German only)
This podcast is a collaboration between Payment & Banking and PayTechLaw.
Each Wednesday, we unpack the legal developments shaping the financial world – clearly, concisely, and without the legal jargon.
Since 2021, PayTechLaw authors and Annerton attorneys have brought depth and clarity to complex topics.
Whether it’s PSD3, DORA, or FiDA – we provide the legal context you need.
In 20 minutes. No detours.
