BaFin's Supervisory Requirements For IT In Financial Institutions

German financial services supervisor clarifies supervisory requirements on IT systems, processes and governance in financial institutions

This Client Alert is part of series of briefings on supervisory guidance on conduct of business and organizational requirements in the financial services sector issued by the German Financial Services Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin). Please see our further coverage on inter alia "The German BaFin's changes to MaRisk and the impact on market participants" and the "Revised MaComp" on our Eurozone Hub website.

BAIT as "core component" for IT supervision in the financial services sector

The rapidly expanding provision of IT-based financial services as well as banks' and financial institutions' increasing internal reliance on IT processes put new challenges on supervisors. To keep pace with this development, the BaFin has introduced a range of supervisory measures.¹