On 14 September 2026, the German regulator, the Federal Financial Supervisory Authority (BaFin), set out its administrative practice regarding two important key function holders under the German Banking Act (Kreditwesengesetz, KWG) and the Pfandbrief Act (Pfandbriefgesetz, PfandBG) in two Circulars. These are:
- Circular 10/2026 (BA): “Appointment of Refinancing Register Administrators pursuant to Sections 22e et seq. KWG”, and
- Circular 11/2026 (BA): “Appointment of Trustees at a Pfandbrief Bank pursuant to Sections 7 et seq. PfandBG” (the “Circulars”).
In these Circulars, BaFin clarifies its expectations for institutions seeking to appoint refinancing register administrators under the KWG or trustees under the PfandBG, as well as their respective deputies. Institutions must demonstrate to BaFin that the proposed individuals are independent, reliable, and possess sufficient expertise to perform these roles.
Both Circulars also provide information on BaFin’s administrative procedures, the remuneration of these key function holders and the fees incurred in connection with their appointment.
The circular concerning trustees replaces the “Frequently Asked Questions (FAQs) on the Appointment and Extension of the Appointment of Trustees and Deputy Trustees at a Pfandbrief Bank pursuant to Sections 7 et seq. of the PfandBG.”