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Financial Disclosure Agreement for Germany

Financial Disclosure Agreement Template for Germany

A comprehensive legal agreement governed by German law that establishes the terms and conditions for sharing confidential financial information between parties. The document ensures compliance with German banking regulations, the German Civil Code (BGB), and European data protection requirements (GDPR). It outlines specific provisions for handling sensitive financial data, including security measures, permitted uses, and obligations for both the disclosing and receiving parties. The agreement incorporates necessary safeguards required under German banking secrecy laws and financial regulatory framework.

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What is a Financial Disclosure Agreement?

A Financial Disclosure Agreement becomes necessary when parties need to share sensitive financial information in contexts such as potential investments, mergers and acquisitions, or financial advisory services. Under German law, such agreements must comply with strict regulatory requirements, including the Banking Act (KWG), Securities Trading Act (WpHG), and data protection regulations (GDPR/BDSG). The agreement typically covers various types of financial information, from company financials to investment details, and establishes robust protections for confidential information. It is particularly important in the German business environment, where banking secrecy and data protection are heavily regulated, and breach of these obligations can result in significant legal consequences.

What sections should be included in a Financial Disclosure Agreement?

1. Parties: Identification of the disclosing and receiving parties, including full legal names and addresses

2. Background: Context of the agreement and the purpose of the financial disclosure

3. Definitions: Detailed definitions of terms, especially 'Confidential Information', 'Financial Information', and 'Permitted Purpose'

4. Scope of Disclosure: Details of what financial information will be disclosed and for what purpose

5. Confidentiality Obligations: Core obligations regarding the handling and protection of the disclosed information

6. Data Protection Compliance: GDPR and BDSG compliance measures for handling personal financial data

7. Permitted Uses: Specific authorized uses of the disclosed information

8. Security Measures: Required security measures for protecting the disclosed information

9. Return or Destruction of Information: Procedures for handling confidential information after the agreement ends

10. Term and Termination: Duration of the agreement and termination provisions

11. Governing Law and Jurisdiction: Specification of German law and jurisdiction

What sections are optional to include in a Financial Disclosure Agreement?

1. Third Party Disclosure: Used when disclosure to third parties (such as advisors or auditors) may be necessary

2. Insider Trading Prevention: Required when disclosed information might include market-sensitive data

3. Banking Secrecy Provisions: Included when one party is a financial institution subject to banking secrecy laws

4. International Transfer of Data: Required when financial information may be transferred outside the EU

5. Regulatory Reporting: Used when mandatory reporting to regulatory authorities may be required

6. Corporate Group Sharing: Included when information sharing within corporate groups is permitted

What schedules should be included in a Financial Disclosure Agreement?

1. Schedule 1 - Categories of Financial Information: Detailed list of specific financial information to be disclosed

2. Schedule 2 - Authorized Recipients: List of individuals or roles authorized to access the information

3. Schedule 3 - Security Protocols: Detailed security measures and procedures for handling the information

4. Appendix A - Data Processing Terms: GDPR-compliant data processing terms where applicable

5. Appendix B - Transfer Mechanisms: Details of mechanisms for secure information transfer

6. Appendix C - Destruction Protocols: Specific procedures for secure destruction of confidential information

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Cost

Free to use

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