Minimum requirements (German financial market supervision)

This article explains minimum requirements as an instrument of German financial market supervision; for the term minimum requirement in general, see minimum requirement .

Minimum requirements are an instrument of the financial market supervision of the German Federal Financial Supervisory Authority (BaFin) for the design of risk management and related areas at German financial institutions and insurance companies. It publishes them in the form of BaFin circulars , internal administrative instructions of BaFin, which represent the supervisory practice of the institute in the interpretation of general legal requirements.

BaFin has published the following industry-specific (general) "Minimum Requirements for Risk Management":

• MaRisk (BA) : Minimum requirements for risk management, which are aimed at credit institutions,
• MaRisk (VA) : Minimum requirements for risk management, which are aimed at the insurance industry. Note: The MaRisk VA was repealed on January 1, 2016 by circular dated January 22, 2009 and replaced by the implementation of the framework directive on the new European Solvency II supervisory regime in national legislation. The new requirements are regulated in Sections 23–32 of the Insurance Supervision Act.
• InvMaRisk : Minimum requirements for risk management, which are aimed at investment companies

The minimum requirements for risk management are updated by BaFin every several years in the form of new circulars that replace the older versions. It is planned (as of May 2016) to implement the ninth amendment to MaRisk (BA) in the form of an ordinance to increase the legally binding effect.

In addition, it has issued minimum requirements for certain special functions and business areas, also in the form of circulars:

• MaComp : Minimum requirements for the compliance function and the other behavioral, organizational and transparency obligations for investment services companies
• MaSan : Minimum requirements for the design of recovery plans, with which systemically important banks are obliged to draw up resolution plans
• MaSi : Minimum requirements for payment service providers if they offer internet-based payment services
• MaGo : Minimum requirements for business organization

See also

• Banking supervisory requirements for IT (BAIT)
• Insurance supervisory requirements for IT (VAIT)
• Capital management supervisory requirements for IT (KAIT)

Web links

• bafin.de
• Circular 3/2009 from BaFin on MaRisk (VA) for insurance companies and pension funds.
• Circular 09/2017 (BA) of October 27, 2017 on MaRisk (BA)