»Regulatory Reporting«
for medium and small Investment Firms
Kronsteyn advises medium and small Investment Firms and Investment Firm Groups on the fulfillment of German regulatory reporting and notification requirements
Investment Firms are subject to various reporting, notification and submission requirements under German law. These are highly relevant within the overall regulatory framework. To a large extent, it is the regulatory reporting system that enables supervisory authorities to effectively monitor institutions under their supervision.
In particular, BaFin and the Bundesbank (BBK) can identify sanctionable violations of supervisory regulations or derive potential threats to supervisory protection goals from the reports. BaFin's main objective is to ensure a German financial system that is functional, stable and has integrity.
The nature and scope of the reporting requirements are derived from various laws and regulations. In addition, there are guidelines issued by the supervisory authorities for details on the reporting procedure. For supervised entities, the reporting requirements are an additional burden on top of the already demanding regulatory requirements.
Types of Reports and Notifications for Investment Firms
Notification and reporting obligations of Investment Firms arise in particular from the German Investment Firms Act (Wertpapierinstitutsgesetz, WpIG) and the Investment Firm Regulation (IFR) and are substantiated by various ordinances and guidelines.
One important reporting obligation is that pursuant to Art. 54 IFR. According to this regulation, various regulatory ratios (own funds, own funds requirement, capital ratios, liquid assets, liquidity requirement, etc.) and their derivation must be reported. In order to determine these ratios, IFR in turn refers at various points to the Capital Requirements Regulation (CRR).
In addition, there are a large number of other reporting and notification requirements. Of particular importance for Kronsteyn's reporting service are, in addition to capital and liquidity reporting for small firms (IFRKL) and medium firms (IFRMI), the submission of financial information (FINREP), million loan notifications and investment notifications:
Art der Meldung/Anzeige | Grundlagen | Intervall | Frist(en) |
|---|---|---|---|
Kapital- und Liquiditätsmeldung (IFRKL) | IFR/ITS | Jährlich | 11.02. |
Kapital- und Liquiditätsmeldung (IFRMI) | IFR/ITS | Quartalsweise | 11.02., 12.05., 11.08., 11.11. |
Einreichung von Finanzinformationen (FINREP) | WpIG/WpI-AnzV | Quartalsweise | 11.02., 12.05., 11.08., 11.11. |
Millionenkreditanzeige | WpIG/GroMiKV | Quartalsweise | 15. Geschäftstag Jan., Apr., Jul., Okt. |
Aktivische Ad-hoc-Beteiligungsanzeige | WpIG/WpI-AnzV | Ad hoc | Unverzüglich |
Passivische Ad-hoc-Beteiligungsanzeige | WpIG/WpI-AnzV | Ad hoc | Unverzüglich |
Passivische Sammel-Beteiligungsanzeige | WpIG/WpI-AnzV | Jährlich | 15.06. |
IFR Reporting on an Individual and Consolidated Basis
Investment Firms must generally fulfill their regulatory reporting, notification and submission obligations on an individual basis, i.e. by themselves and for their own company, irrespective of any possible membership in a group of institutions.
In the case of an Investment Firm Group, the capital and liquidity report according to IFR (form IFRKL for small Investment Firms) must generally be prepared and submitted to the Deutsche Bundesbank (BBK) both on an individual basis and on a consolidated basis. Reporting on a consolidated basis comprises the consolidated data of the companies included in the scope of consolidation. The scope of consolidation is the entity required to report and all investment firms, financial institutions, ancillary service providers and tied agents of the investment firm group.
Instead of a regulatory consolidation, Art. 8 IFR provides for the possibility of performing and reporting a group capital test. This is a significant relief for simple groups of institutions that do not have an inherent material risk for clients or the market. The application of the group capital test requires the approval of BaFin/BBK. However, the exact criteria for the approval have not yet been determined at the time of processing, and approval has not yet been granted to any securities institution.
Reporting Format and Procedure
Reporting format and reporting procedure differ depending on the type of report. In the case of capital and liquidity reporting in accordance with IFR (IFRKL), it will only be permissible to submit reports in XBRL format from the reporting deadline of December 31, 2023. Prior to this, it was still permissible to submit reports as Excel files. Likewise, the XBRL format is mandatory for the submission of financial information (FINREP).
Million loan notifications and investment notifications can be set up in XML format. In addition, the Bundesbank offers e-forms or the PDF upload as alternatives.
Kronsteyn Services
Kronsteyn advises on the fulfillment of German regulatory reporting and notification obligations for medium and small Investment Firms. The law firm works both as an outsourcing firm to fulfill the obligations on an ongoing basis and as part of individual consulting mandates. Kronsteyn prepares reports based on your company data, coordinates details with you and, if necessary, the Bundesbank, prepares the report in the required format (e.g. XBRL) and transmits the data to the Bundesbank. Kronsteyn also takes care of the ongoing monitoring of reporting deadlines so that you never miss a deadline.
