Germany's financial watchdog Ba Fin has stripped three senior partners at Berenberg of their authority amid suspicions of corporate governance breaches. The Hamburg-based private bank confirmed Friday that the executive management powers were suspended immediately on the regulator's order, marking one of the most severe interventions available to German authorities.

The move follows indications of possible breaches uncovered during the 2025 annual audit, particularly concerning market transactions of unclear provenance. Berenberg stated that the investigation was hampered by a lack of transparency, though the suspected violations had no impact on client business or caused any client harm. The bank emphasized these changes would not affect day-to-day operations or employment.

To replace the suspended managing partners, Ba Fin appointed Hans-Walter Peters, Berenberg's former long-serving chief executive, and Michael Horf, former executive board member at Degussa Bank. Peters called the intervention necessary to maintain absolute integrity, a core Berenberg value. The bank oversees approximately €40bn in assets under management and employs 400 of its 1,500 staff in London.

Berenberg expects to report roughly €20mn in net profit for 2025 and about €40mn for the first half of 2026. However, the 2025 financial statements remain unsigned pending audit completion, creating uncertainty for the 436-year-old institution as it works to restore regulatory confidence.