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It has to be the home regulator that approves the prospectus.
Deutsche's home regulator is BaFin, the German financial watchdog, but its biggest and riskiest trading operations happen in its London branch.
That led to the development of distinctions between a "home" regulator, who keeps an eye on the soundness of the bank, and a "host" regulator, who is concerned only with the bank's business practices.
BaFin, Germany's national watchdog and Deutsche Bank's home regulator, is reportedly examining the case for segregating the two types of business as well.Some investors and analysts have also begun arguing the case for breaking up big banks.
One beleaguered foreign banker cited in a survey by EY, an auditing firm, said his Chinese unit filed 6,300 different reports annually, whereas its parent bank filed just 400 reports to its home regulator.
Planning for one's own demise raises home/host problems in spades, especially with the relevant bankruptcy/insolvency laws varying between different types of financial institutions within countries, and between countries.How can a subsidiary plan for its own demise when its positions can be controlled by head office (and its home regulator)?
Similar(52)
Bilateral relationships between home regulators (who have primary responsibility for supervision) and host regulators are generally healthy.
Brussels bureaucrats have long urged greater integration of European financial markets, while home regulators and the banks themselves have found many ways to protect their home turf.
Host regulators must recognise the competence of home regulators.With the benefit of hindsight, it seems clear that harmonisation, although quite useful in some areas such as aligning accounting and disclosure standards—holds limited appeal.
The administration's chief nursing home regulators, Dr. Antonia C. Novello, the state health commissioner, and Wayne Osten, a senior health official, said the units were appropriate and had been examined by officials during routine inspections of the homes.
A ban is needed — and if nursing home regulators won't impose one, the White House Office of Management and Budget, which will review the rule before its scheduled release in September, needs to ask for a revision.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com