New German Process Agent / Receiving Agent Requirements

New and upcoming rules in Germany require insurance companies, management companies, credit institutions,  payment providers and securities institutions that outsource material activities to entities outside the EU to appoint a German receiving agent also known as a process agent („Receiving Agent“).

The new Receiving Agent requirement connected to material outsourcing by German entities is regulated under the following acts:

• German Banking Act (Kreditwesengesetzes, „KWG“)
• German Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetzes, „ZAG“)
• German Insurance Supervision Act (Versicherungsaufsichtsgesetzes, „VAG“)
• German Investment Act (Kapitalanlagegesetzbuchs, „KAGB“)
• German Securities Institutions Act (Wertpapierinstitutsgesetz, „WpIG“)

For outsourcing (delegation) of critical or material activities to companies domiciled in a third country (outside the EU), institutions must contractually ensure that a domestic Receiving Agent is appointed for the outsourcing provider, to whom notifications and document deliveries can be made by the German regulator (Bundesanstalt für Finanzdienstleistungsaufsicht, “BaFin”).

While the German entities subject to the relevant laws can act as the Receiving Agents themselves, it may be advisable to appoint an independent third party to act in the capacity of the Receiving Agent.

How can Zeidler help?

Zeidler Group, with its office in Frankfurt, has been acting as a Receiving Agent for entities from around the world for many years, with expert knowledge and a streamlined onboarding process in this specific area.

Zeidler can also act as Receiving Agent on behalf of international parties who enter into transactions in Ireland, Luxembourg and the United Kingdom.

For more information on Zeidler Group’s streamlined and competitive service, contact us.