Regulatory Alerts2019-06-12 | Circular 3/2016 (VA) - Trustee for Monitoring of the Guarantee Assets (Sicherungsvermögen)Circular 3/2016 (VA) - Trustee for Monitoring of the Guarantee Assets
The Federal Financial Supervisory Authority (BaFin) issued Circular 3/2016 (VA) to establish detailed requirements for the appointment, selection criteria, and operational duties of trustees monitoring guarantee assets under the German Insurance Supervision Act. The circular mandates that life insurance undertakings, Pensionsfonds, and qualifying mutual associations appoint qualified and independent trustees who must verify investment eligibility within ten working days and ensure continuous sufficient cover of the target asset volume. It further clarifies the division of duties between primary and deputy trustees, outlines specific independence restrictions to prevent conflicts of interest, and standardizes reporting procedures for syndicates and small insurance entities.