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ARTICLE · 27 NOVEMBER 2025

Latest Information On The BaFin's General Administrative Order Regarding Turbo Certificates

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On 15 October 2025, the German Federal Financial Supervisory Authority (BaFin) issued a general administrative order restricting the marketing, distribution and sale of "turbo certificates"...

GermanyFinance and Banking
Julia Siebrecht
Julia Siebrecht
Michael Huertas
Michael Huertas
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Quick Take

On 15 October 2025, the German Federal Financial Supervisory Authority (BaFin) issued a general administrative order restricting the marketing, distribution and sale of "turbo certificates"1 In regulatory terms under EU law, Turbos are classified as financial instruments within the meaning of MiFID II (Article 4(1)(15) read with Annex I, Section C), and—under their usual issuance structure—are bearer bonds that synthetically track the underlying's price movements with leverage.

The intervention is grounded in the product intervention powers under Article 42 of MiFIR, read together with Section 15 of the German Securities Trading Act (WpHG). These provisions empower BaFin to limit or prohibit the distribution of specific financial instruments where they present significant risks to retail investors. In regulatory terms under EU law, turbo certificates fall within the MiFID II definition of financial instruments (Article 4(1)(15) in conjunction with

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