Introduction

Key Governance Developments

Commerzbank board reviews former CEO Knof’s conduct over undisclosed meeting with UniCredit

Commerzbank's supervisory board is investigating whether former CEO Manfred Knof breached his duties by failing to disclose a meeting with UniCredit CEO Andrea Orcel in September 2024. The meeting, which was made public only recently, occurred shortly after UniCredit began building a significant stake in Commerzbank and pressing for a takeover. Knof says he did not initiate the discussion with Orcel, who he claims joined a planned meeting with another UniCredit banker without warning him. The former CEO says he also remains committed to Commerzbank's independence.

Best source: Handelsblatt (subscription required, in German)

See also: Reuters (subscription required)

Former trader suing Deutsche Bank for €152m calls on European Central Bank to examine role of CEO Sewing

A former trader for Deutsche Bank, Dario Schiraldi, is seeking a supervisory review by the European Central Bank in connection with his €152m lawsuit against the German group. The escalation of the dispute focuses on the role of Christian Sewing, now Deutsche's CEO, who managed a 2013 audit of repo transactions conducted with Italy's Banca Monte dei Paschi di Siena. An appeal court in Italy cleared Schiraldi and five other former Deutsche employees of wrongdoing in 2022, but Schiraldi claims the bank used aggressive netting of leverage to obscure its true exposure.

Best source: Finance Magnates


Continuation funds reach $63bn in assets but ethics concern grows in private markets: CFA Institute

Continuation fund transactions rose to $63bn in 2024, fuelled by a backlog of unsold private equity assets and reduced investor distributions, according to a study by the CFA Institute Research and Policy Centre, part of the global association of investment professionals. The report highlights growing ethical concern, particularly about potential conflicts of interest, with asset managers on both sides of transactions to transfer assets to the new vehicle. While continuation funds provide existing investors with liquidity and greater flexibility, the research body says questions remain about governance, alignment of interests between managers and investors, and the fairness of valuation processes. The authors say the trend is spreading worldwide, with regulators facing emerging risks, especially in Asia-Pacific markets.

Best source: The Asset


Conflict among members of ultra-wealthy families growing over wealth management strategies: Standard Chartered

Around 74% of family office professionals have observed an increase in conflict between members of ultra-wealthy families, pointing to increasing disagreement over investment strategy, governance and succession, according to a study by Standard Chartered. Its global survey of over 300 ultra-high net worth families and their advisers finds that geopolitical instability, digital disruption and social change are putting unprecedented pressure on traditional wealth management strategies, prompting greater innovation but also pushing many to rethink their operations in order to improve resilience. The report finds that 54% are considering relocating their family office this year, 87% acknowledge that better succession planning could save them millions and 76% are comfortable using artificial intelligence tools to support investment decisions.

Best source: Finews

See also: Standard Chartered

See also: Standard Chartered

CSSF publishes circular mandating enhanced compliance with sanctions

Luxembourg's financial regulator, the CSSF, has published a circular requiring companies to implement independent sanctions compliance programmes by the end of the year. It sets out clearer management responsibilities, broader risk mapping criteria and stricter controls and documentation requirements. Businesses must now assess both direct and indirect exposure throughout their value chains, with obligations extending beyond financial institutions to any entity managing assets. The regulator expects the new rules to pose significant operational challenges, particularly for non-financial entities, as the global sanctions environment becomes more complex.

Best source: Paperjam (in French)

See also: Delano

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