GERMANY: Draft law to implement EU major shareholdings changes

Tuesday May 12 2015

Following on from the update of 27th February, the Ministry of Finance has published the adopted text of the draft law on the implementation of the amendments to the Securities Acquisition and Takeover Act (WpUG). This follows on from the consultation on the changes, which closed on 14th March 2015.

The changes concern in essence:

– The revision of the guidelines for the implementation of the country of origin principle,

– The adaptation of reporting requirements on the acquisition or disposal of major holdings, in particular by means of financial instruments (including other financial instruments granting economic exposure similar to holding shares),

– The elimination of interim reports in the periodical reporting and the re-recording of an obligation of companies that are active in primary forests in the extractive industries or in the logging industry, to publish an annual payment report,

– The introduction of increased administrative fine framework for certain breaches of transparency obligations and the introduction of a general principle of mandatory publication of sanctions and measures by the Federal Financial Supervisory Authority (BaFin).

Besides the changes resulting from the implementation of the Transparency Directive due to the amending directive, the law contains other changes designed in particular to simplify the administrative practice of the clarification of existing controls and editorial amendment.

Click on the above link for the draft law (in German).