Monthly Dose of Germany: August 2024

New Regulations for Sustainability-related Fund Names

BaFin Publishes Supervisory Notice regarding the ESMA Guidelines

In July, BaFin issued a comprehensive statement on the implementation and application of the ESMA Guidelines for fund names in a supervisory notice. BaFin explained how it is adopting the guidelines published by the European Securities and Markets Authority (ESMA) on 14 May 2024 on the use of sustainability-related terms in fund names for German asset management companies and German investment funds in its administrative practice. 

At a glance:

• EU standardized requirements of the ESMA Guidelines on using sustainability-related terms in fund names are applied directly by BaFin.
• A distinction is made according to the following name components: 
  • Transition, social or governance-related terms
  • Environmental or impact-related terms
  • Sustainability-related words
• Depending on the fund's name, different requirements must be met:
  • 80 % threshold for proportion of investments in accordance with the binding sustainable elements of the investment strategy
  • Minimum exclusions under Climate Transition Benchmark (CTB) and Paris Aligned Benchmark (PAB)
  • The obligation under Art. 2 (17) SFDR to invest "meaningfully"

"Monthly Dose" Employment Law: 07/2024

The seventh edition of our Monthly Dose Employment Law in 2024 on current case law explains the judgments of

(1) the German Federal Labour Court (Bundesarbeitsgericht, BAG) dated 7 February 2024 (7 ABR 8/23) on content of works council’s seminar/education entitlement under the Works Constitution Act,

(2) the BAG dated 13 December 2023 (5 AZR 168/23) on a pro rata increase in an above-tariff allowance in the event of working hours increase,

(3) the Regional Labour Court (Landesarbeitsgericht, LAG) Rheinland-Pfalz dated 31 January 2024 (8 Sa 71/23) on the requirements for the burden of explanation and proof of the employer's objection of malicious failure to earn other wages in the case of the employee's claims for delayed acceptance of wages,

(4) the LAG Cologne dated 6 February 2024 (4 Sa 390/23) on employee’s entitlements for performance based bonus payments in case of delayed target setting by the employer,

(5) the Labor Court (Arbeitsgericht, ArbG) Hamburg dated 16 January 2024 (24 BVGa 1/24) on works council’s co-determination rights on the use of ChatGPT and other artificial intelligence systems and

(6) the European Court of Justice (Europäischer Gerichtshof, EuGH) dated 18 January 2024 (C-218/22) on employees’ entitlement for compensation if unused (statutory) vacation entitlements upon early retirement.

Use of cloud services in the healthcare sector

Section 393 SGB V sets new requirements for the use of cloud services in the healthcare sector

Since 1 July 2024, section 393 SGB V has been in force in the version revised by the Act to Accelerate the Digitisation of the Healthcare System (Digital Act (DigiG) Digital-Gesetz (DigiG) | BMG (bundesgesundheitsministerium.de)) and introduces specific requirements for the use of cloud services by healthcare providers as well as health and long-term care insurance funds. The updated regulation provides clearer data protection rules for the processing of personal health and social data through cloud services. Secure cloud connectivity also facilitates the use of AI applications and other digital services for healthcare providers.

People News

We are delighted to welcome two new partners in our Dusseldorf and Cologne offices!

Deloitte Legal strengthens M&A department with transaction expert Dr Christof Bremer

Dr Christof Bremer joins Deloitte Legal's Cologne office as a partner on 1 August, strengthening the firm's growing transaction department. At Deloitte Legal, Christof Bremer will contribute his experience and expertise in particular in the areas of mid-cap M&A and corporate litigation.

Read more here!

Energy lawyer Dr Torsten Wielsch joins Deloitte Legal in Dusseldorf

Deloitte Legal is strengthening its energy law practice as of August 1, 2024 with the addition of Dr Torsten Wielsch, a well-known partner in the market. As Lead Energy Law at Deloitte Legal, Torsten Wielsch will advise clients on all aspects of energy law and contribute his expertise in providing advice to the electricity-intensive industry, public administration and energy suppliers.

Read more here!

Deloitte Legal Webcast Series

In our German language Deloitte Legal Update webcast series, we address current legal issues and developments that are important for corporate practice.

In our upcoming "Legal Update" webcast we will discuss:

Pillar 2 - Global minimum taxation does not spare the legal department!

Thursday, 05 September 2024 | 11:00 - 11:45 a.m.
Register here (Webcast in German language)

“Pillar 2”, the introduction of a global minimum tax on the profits of multinational corporations, resembles a tax revolution. The legal requirements issued in implementation of the Pillar 2 Directive can have a significant impact on companies' data, structure and compliance.

At the same time, however, the new regulations are a call to transform companies. And it is an issue that doesn't spare the legal department. Not only does the implementation of the requirements require legal support, but any changes to legal structures can also have an impact on Pillar 2 taxation.

Our experts Dr Volker Schulenburg, Dr Julia Petersen and Dr Hendrik Breimann will guide you through the webcast.

In our Webcast Archive, you can find a list of previous webcasts and also download the corresponding presentations.

Should you be interested in topics discussed during one of our German language webcasts, do not hesitate to contact the respective presenters – they will be delighted to provide you with additional information in the English language.