Cross-border directive

Financial service providers are often confronted with the provision and distribution of financial products abroad. This activity, however, is subject to regulation, respectively, authorization in most foreign countries. In the event of an infringement, significant legal and reputational risks may arise for the company and the employee. It is therefore strongly recommended in case of cross-border business activities, cross-border risks are also adequately identified, limited and supervised. The aim of this directive is to define the principles to be applied in the context of cross-border activities, as well as the organizational measures to be taken for this purpose. This directive supplements the framework introduced by the Directive on internal control and risk management.