Germany: Capital Adequacy/BASEL

In our Client Memo of December 2, 2011, we reported on the adoption of the "Act Reforming the Laws on Intermediaries for Financial Investments and on Investment Products" ("Act").

The financial crisis in 2008 has led to regulatory changes in the financial sector worldwide. The regulatory environment for banks organised in the European Economic Area ("EEA") in particular has been subject to many material changes since 2008, and further regulatory changes are in the process of implementation by the competent national and supranational authorities.

The financial crisis and ensuing losses suffered by counterparties to various structured product transactions has provoked an outbreak of "misselling" cases.