Bafin threatens centuries of stability with SSD reclassification

Scales_Adobe_230x150
By Silas Brown
08 Nov 2018

Bafin, the German financial regulator, is seriously considering reclassifying Schuldscheine from loans to securities as the market pushes towards digitisation, according to a senior German debt banker. Such a move would have far-reaching consequences on demand for the product, which has allowed the market to blossom over the past two years, writes Silas Brown.

Under the German Civil Code — the legal basis of a Schuldschein contract — the product is characterised as a loan, and thus sidesteps the complexities of MiFID II and other regulations that affect securities. 

The market enjoys lighter documentation as a consequence, which draws many borrowers to ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.