Regulatory reset removes barrier to collective stewardship

For many years, joint engagement activities by investors in Germany were subject to legal uncertainties. Following the ECJ ruling, BaFin fundamentally updated its “Acting in Concert” regulations in March 2026. For more information, visit: https://www.regulationtomorrow.com/2026/03/bafin-changes-its-administrative-practice-the-end-of-uncertainty-for-esg-collaborative-engagements/

This development represents a major milestone for collaborative engagement and is also of significant relevance to issuing companies. In our article with Andreas Posavac and Christine Chow, PhD, of Embera Partners, we analyze the end of the uncertainty surrounding “Acting in Concert” and provide an overview of which aspects will be relevant for boards of directors, IR teams, and investors in the future.

We demonstrate how BaFin’s new position reduces the legal risk for collaborative engagement in Germany, influences the dynamics of annual general meetings, and clarifies the boundaries for mergers and acquisitions. This change brings Germany closer to international stewardship practices—we illustrate the implications this holds for both investors and issuers.