Special Situations in the Financial Sector
Dealing with special situations - financial activities that might or have already caused the attention of a regulatory body – becomes an ever more pressing issue in the financial industry. BaFin explicitly doubled-down on their gatekeeper function and the trend indicates even stricter controls to come. At the same time, a range of national and international regulatory re-quirements press hard on the industry.
Such events include compliance breaches, special audits or deposit protection audits, inadequate im-plementation or violation of legal requirements, e.g. sustainability requirements, inadequate risk analyses, failure to report suspicious transactions, liquidity problems, anomalies in stress tests, (alleged) breaches of proper business organisation or money laundering prevention, irregularities in the annual financial statements, in the internal control system and in risk management, as well as challenges with outsourced services, and the list goes on and on.
We provide banks, financial services companies and/or their executive bodies the best possible support in these situations: Together, we define the necessary measures to take control over the situation.
We take a very forward-looking approach, to keep you out of future distress. We take care of the entire implementation and monitoring, so that you can deal with special situations in a professional manner.
Thanks to our wide-ranging expertise in various specialist areas, we are able to develop well-founded, legally sound and strategically sophisticated solutions that create a real value-add.
Together with you, we work to set up the right processes, accompany discussions with authorities, review and prepare relevant documentation, and support you both strategi-cally and operationally.
ANALYSING
The aim is to identify special situations at an early stage in order to mitigate (further) damage. To this end, we analyse the situation, identify regulatory risks and put you in the driver's seat through an internal investigation enabling you to maintain or take control of the special situation and intervene in an active and controlling manner.
ROADMAPPING & MONITORING
Based on our analysis, we develop a roadmap with our respective clients, draw up an action plan and prepare the strategic defence and/ or (re)action. We support the decision-makers with KPI-based dashboard monitoring so that they always have an overview and can act or react at an early stage.
TAKING ACTION
We jointly implement the strategy we have developed together with you and the personnel responsible. We prepare the documentation required, take on internal functions on an interim basis (if necessary) and manage communication, both with the supervisory authorities and internally (employees) and externally (public).
1. What do we mean by special situations in regulated companies?
Whether it involves special audits by Bundesbank, Federal Financial Supervisory Authority (BaFin), European Central Bank (ECB), European Insurance and Occupational Pensions Authority (EIOPA), or other competent supervisory authorities, an internal suspicion, or investigations into the company, their managers and other bodies and/or employees – by special situations we mean circumstances that pose a high risk for companies that could result in regulatory, compliance-related, or even criminal consequences. We provide fast, structured support with the necessary experience, especially to medium-sized or large banks, financial service providers and insurers and their governing bodies in challenging situations.
2. In which specific cases do we provide support?
Our services in the area of special situations include, among others:
- Support during regulatory audits (e.g. special audits, annual audits, deposit protection audits).
- Internal investigations, e.g. in cases of suspected misconduct by employees or managers, executive bodies and/or other persons.
- Interim functions, e.g. as Compliance Officer, Money Laundering Officer or Data Protection Officer.
- Restructuring or transfer of portfolios, e.g. loan portfolios.
- Support in communication with supervisory authorities (BaFin, Bundesbank, ECB) and in court proceedings.
- Management of IT onboarding/offboarding processes (including core banking systems).
3. How do we proceed in a special situation?
Our goal is to identify risks early on and regain the ability to act. To do this, we analyse the situation, identify regulatory weaknesses and work with you to structure the next steps.
We develop a tailor-made roadmap, draw up an action plan and, if necessary, prepare a strategic defence.
With KPI-based monitoring, we ensure that you maintain oversight at all times.
We not only help with planning, but also with implementation – with a hands-on approach that can also extend into internal structures.
Our areas of expertise range from supervisory law, compliance and commercial criminal law to communication, labour law and IT security to audit & advisory. Depending on the nature of the special situation, we provide you with a dedicated team of experts.
4. How do we support you in communicating to all relevant stakeholders and in im-plementation?
As lawyers with decades of experience in handling crisis situations in regulated companies, we know what matters in delicate moments:
In addition to discretion and trust, we uphold composure, structure and a clear roadmap.
Our particular strength lies in implementing complex regulatory and organisational requirements in a practical, strategic and measured manner, even under considerable time pressure and under high expectations.
We develop viable communication strategies for supervisory authorities, employees and external stakeholders and, if desired, take on key roles in your company on an interim basis to enable you to act quickly.
In doing so, we not only keep an eye on legal requirements, but also on the trust of your stakeholders and the company's reputation.
This gives you control and keeps you in the driver's seat – even in a crisis.
Typical cases in which clients consult us:
- Internal compliance incidents
- Special audits, deposit protection audits, and annual audits
- Investigations by criminal authorities
- Suspected market abuse or money laundering
- Coordination with supervisory authorities
Act proactively rather than reactively, enabling targeted and forward-looking action.
