Circular on the Members of the Management Body and of Administrative and Supervisory Bodies in accordance with the German Banking Act

„This translation is furnished for information purposes only. The original German text is binding in all respects.“ Circular 11/2025 on the members of the management body and of administrative and supervisory bodies in accordance with the German Banking Act Bonn, 22 October 2024 This Circular is based on the Guidance Notices dated 29 December 2020 and consolidates them to avoid duplication. To the extent that the requirements for members of the management body and members of the administrative and supervisory bodies differ, this is explicitly indicated in the headings. The joint guidelines of the European Banking Authority EBA) and the European Securities and Markets Authority (ESMA) “Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body and key function holders“ (EBA/GL/2021/06) and the EBA’s “Guidelines on internal governance” (EBA/GL/2021/05) were incorporated to the extent that BaFin has adopted them in its administrative practice. As set out in Title I of the Guidelines, the principle of proportionality applies. The Circular is limited to the scope of application of the German Banking Act (Gesetz über das Kreditwesen – KWG) and is addressed to its target users. This Circular does not apply to qualified crypto custodians under the KWG, to the extent that they are also subject to the MiCAR. European requirements, guidelines and supervisory standards take precedence in this regard. Conversely, it applies in principle to KWG institutions to the extent that they engage in qualified crypto custody business in accordance with section 1 (1a) sentence 2 no. 6 of the KWG, maintenance of crypto securities registers in accordance with section 1 (1a) sentence 2 no. 8 of the KWG, or both. These institutions are subject in particular to the principle of proportionality, which aims to give appropriate consideration to operational (size, structure, complexity of business model) and risk-specific factors. Business- and sector-specific factors must also be taken into account.