Silverton Group granted BaFin licence under the Secondary Credit Market Act

The Silverton Group (Silverton) has been granted a licence by Federal Financial Supervisory Authority (BaFin) in accordance with the German Secondary Credit Market Act (KrZwMG). This act, which came into force on 30 December 2023, implements the EU Secondary Credit Market Directive (EU 2021/2167) into German law. Its objective is to make the market for non-performing loans (NPLs) more transparent and secure, while establishing standardised regulations for trading in NPLs throughout Europe.

The law aims to enhance transparency in the market for credit claims, reduce risks for investors and the financial system, and prevent abuse by specifying rules and regulations for trading credit claims. Licence holders must demonstrate professional competence and reliability, possess sufficient financial resources, operate a viable business model, and comply with all relevant legal and regulatory requirements. Regular reporting to BaFin and the Deutsche Bundesbank is mandatory.

Stefan Dölker, partner of Silverton, comments: "We are proud to be one of the first companies to be granted this licence by BaFin. It emphasises the integrity of our company and our expertise in the field of NPLs. For years, this business area has been one of our core activities. It is currently increasing in relevance because of the situation in the financial and property markets."

Silverton also holds a payment licence in accordance with ZAG, authorising the company to act as a BaFin-licensed depositary and collateral trustee in the context of syndicated financing.