A ban on the sale of retail credit-linked notes (CLNs) in Germany has been branded "crazy" and "contrary to the law" as industry stakeholders prepare to challenge the proposal in the courts.
The German financial regulator, Bafin, proposed the shutdown of the €6.3 billion market on July 28 and published a draft of its proposed General Administrative Act on the same day. The window for comments on the draft closed on September 2.
Market participants were caught unawares by the proposal.
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