# BaFin MaComp Guide: BT 3 Cost Info, BT 5 & BT 13 Inducements

> Audit BaFin’s MaComp circular: BT 3 ex-ante FX cost sheets, BT 5 ESG product governance, § 70 WpHG inducement ledgers, and PFOF sunset rules.

Canonical: https://eurofirmledger.com/bulletins/bafin-macomp-bt-3-bt-13-product-governance-inducement-audits
Last updated: 2026-11-14T21:28:12.823Z

**Publication:** Euro Firm Ledger
**Category:** Bafin Wplg Amf Consob Cnmv Supervision
**Published:** 2026-11-14T00:25:25.915Z
**Author:** Lukas Lindqvist, CEFA (Certified European Financial Analyst (EFFAS/CEFA, Frankfurt & Zurich))
**Reviewer:** Not recorded

## Answer-first summary

BaFin’s MaComp administrative circular translates MiFID II conduct principles into granular German inspection rules—governing ex-ante cost PDFs (BT 3), negative target markets (BT 5), and § 70 WpHG quality-enhancement inducements.

## Key takeaways

- BaFin’s MaComp circular operationalizes MiFID II into strict German examination modules (AT & BT 1–13) audited annually by external CPAs under § 89 WpHG.
- Under § 70 WpHG and § 6 WpDVerOV, German firms retaining third-party inducements must maintain twin accounting ledgers (Zuwendungs- and Verwendungsverzeichnis) proving concrete client quality enhancements.
- Germany’s temporary domestic grandfathering for Payment for Order Flow (PFOF) under MiFIR Review Article 39a(2) terminates permanently on June 30, 2026.
- MaComp BT 3 requires pre-trade ex-ante cost sheets to include embedded foreign-exchange conversion markups and implicit venue spreads alongside headline ticket commissions.

## Related financial entities

- **ESMA Guidelines on MiFID II Product Governance Requirements** (ESMA-PROD) — license: Supervisory guidelines issued by ESMA establishing requirements for firms manufacturing and distributing financial instruments to ensure investor protection.
- **German Investment Institutions Act (WpIG / BaFin)** (BAFIN-WPIG) — license: Specialized German regulatory statute transposing the EU Investment Firms Directive (IFD), administered by BaFin and the Deutsche Bundesbank.
- **MiFID II Cross-Border Passporting Framework** (MIFID2-PASS) — license: Harmonized European framework allowing authorized investment firms to provide investment services across all EU member states and EEA countries.

## Analysis

In Germany, general EU MiFID II Level 2 regulations are enforced through [BaFin](/competent-authorities/bafin)'s exhaustive administrative circular **MaComp (*Mindestanforderungen an die Compliance-Funktion und weitere Verhaltens-, Organisations- und Transparenzpflichten*, Circular 05/2018 WA as continuously updated through 2025/2026)**. Divided into a General Part (**AT**) on Compliance Officer independence and 13+ Special Parts (**BT 1 to BT 13**), MaComp serves as the literal grading checklist used by certified public accountants during Germany's mandatory annual [§ 89 WpHG external conduct audit](/bulletins/germany-bafin-wpig-bundesbank-dual-supervision-class-1-2-3-firms)—binding every German [WpIG](/passports/bafin-wpig-framework) firm, universal bank, and German [Article 35 branch](/bulletins/mifid-ii-article-35-branch-establishment-host-cobs-supervision)!

Within our [national conduct interventions guide](/bulletins/bafin-wpig-amf-sapin-2-cnmv-consob-conduct-interventions-2026) and the [national supervision hub](/topics/bafin-wplg-amf-consob-cnmv-supervision), neo-brokers, ETF savings-plan (*Sparplan*) apps, and structured-certificate distributors face intense BaFin mystery-shopping sweeps across three specific MaComp modules: **BT 3 (Cost & Charges Transparency)**, **BT 5 (Product Governance & Sustainability Preferences)**, and **§ 70 WpHG / BT 10–13 (Inducements, *Zuwendungen*, and PFOF Phase-Out)**.

## Core MaComp Modules Audited Annually Under § 89 WpHG

| MaComp Module | German Statutory Anchor | Concrete Operational Requirement Enforced by BaFin | Typical CPA Audit F2 / F3 Deficiency |
| :--- | :--- | :--- | :--- |
| **AT 6 & BT 1** (Compliance Function) | § 80 WpHG / Del. Reg. 2017/565 Art. 22 | Unfettered data access, multi-year risk-based monitoring plan, direct annual report to management & supervisory board | Compliance officer dual-hatting inside revenue-generating sales/dealing units |
| **BT 3** (Information & Cost Transparency) | § 63(7) WpHG | Itemized **ex-ante cost sheet** (*Ex-ante-Kostenausweis*) BEFORE order submission + annual **ex-post** statement showing cumulative return drag (%) | Hiding FX conversion spreads (e.g., 25–50 bps on US stocks) or overnight CFD swaps inside tiny links |
| **BT 5** (Product Governance & ESG) | §§ 80(9)-(13), 63(5) WpHG & [ESMA Guidelines](/passports/esma-product-governance-guidelines) | Six-dimension target market (incl. ESG sustainability preferences since Aug 2022) + clustering checks on execution-only apps | Selling leveraged ETPs / complex certificates into explicit negative target markets without warning |
| **§ 70 WpHG / Inducements** (*Zuwendungen*) | § 70 WpHG & § 6 WpDVerOV | Third-party trailer fees permitted in non-independent advice/RTO **ONLY if enhancing service quality** + documented in *Zuwendungsverzeichnis* | Retaining ETF issuer / venue kickbacks on pure execution-only apps without tangible client tool upgrades! |
| **BT 12 / BT 13** (Staff & Complaints) | § 80 WpHG & ESMA / JC Guidelines | Strict PA dealing pre-clearance, sales remuneration conflict register, and granular BaFin complaint taxonomy | Paying variable account-manager bonuses linked to high-margin certificate turnover |

![German § 70 WpHG and MaComp inducement legality and quality-enhancement (Qualitätsverbesserung) audit workflow](/api/figure?type=flow&title=German%20%C2%A7%2070%20WpHG%20%26%20MaComp%20Inducement%20Legality%20Gate&subtitle=Testing%20third-party%20rebates%2C%20ETF%20Sparplan%20kickbacks%2C%20and%20the%20June%202026%20PFOF%20ban%20transition&steps=1.%20Service%20Check%3A%3ADiscretionary%20PM%20or%20Honorar-Anlageberatung%3F%20-%3E%20100%25%20pass-through!%7C2.%20PFOF%20Sunset%20Check%3A%3AMiFIR%20Art.%2039a%20bans%20German%20PFOF%20after%2030%20June%202026!%7C3.%20%C2%A7%206%20WpDVerOV%20Test%3A%3ADocument%20concrete%20proportional%20quality%20enhancement%20for%20client%7C4.%20Application%20Register%3A%3ALog%20exact%20EUR%20received%20vs%20EUR%20spent%20in%20Verwendungsverzeichnis!&metrics=PM%20%2F%20INDEPENDENT%3A%3A0%25%20Retention%3A%3A%C2%A7%2070%282%29%20%26%20%C2%A7%2064%284%29-%287%29%20WpHG%7CDE%20PFOF%20GRACE%20END%3A%3A30%20Jun%202026%3A%3AMiFIR%20Art.%2039a%282%29%20sunset%20date%7CDUAL%20LEDGERS%3A%3AMandatory%3A%3AZuwendungs-%20%26%20Verwendungsliste%7CEX-ANTE%20TIMING%3A%3APre-Click%20Gate%3A%3A%C2%A7%2063%287%29%20WpHG%20before%20trade%20submit)

## Germany's Unique Dual Inducement Ledgers (*Zuwendungs- und Verwendungsverzeichnis*)

Whereas several EU jurisdictions review third-party trailer fees qualitatively, **§ 6 WpDVerOV (*Wertpapierdienstleistungs-Verhaltens- und -Organisationsverordnung*)** and MaComp impose a **dollar-for-dollar accounting ledger requirement** on German brokers and wealth distributors (such as [Aktien AG](/firms/aktien-ag), [ABT AG](/firms/abt-ag), or German branches of [UniCredit Bank Austria](/firms/bank-austria)):
1. **Inducement Receipt Ledger (*Zuwendungsverzeichnis*)**: Itemizes every euro of mutual-fund trailer commissions (*Bestandsprovisionen*), structured-note placement rebates, or ETF marketing subsidies received from third-party issuers; AND
2. **Quality-Enhancement Application Ledger (*Verwendungsverzeichnis*)**: Proves quantitatively how those exact inducement funds were spent on **additional or higher-level services proportional to the level of inducements received** under § 6(2) WpDVerOV (e.g., wide open-architecture product universes, free digital portfolio analytics, extended investor education tools—*never* ordinary statutory compliance or executive dividends!).

## Transition Away From German Payment for Order Flow (MiFIR Art. 39a Sunset: 30 June 2026)

Germany was historically the epicenter of European **Payment for Order Flow (PFOF)**, with zero-commission neo-brokers collecting EUR 1.50 to EUR 4.00 per retail order routed to regional market-maker venues (Tradegate, LS Exchange, Gettex). Under **Regulation (EU) 2024/791 (MiFIR Review) Article 39a**, EU lawmakers enacted a blanket PFOF prohibition while granting member states like Germany that permitted PFOF prior to March 2024 a **strict grandfathering deadline expiring on June 30, 2026**—forcing German brokers to pivot toward transparent explicit EUR 1 ticket fees, proprietary Systematic Internaliser/exchange integration (such as Tradegate becoming a full regulated exchange), or compliant issuer product-distribution agreements audited under MaComp!

## Quantitative MaComp BT 3 Ex-Ante Cost & Return-Drag Calculation

Under **MaComp BT 3** and BaFin's supervisory guidance on *Ex-ante-Kostenausweise*, brokers must display total entry, ongoing, and exit costs—including embedded FX conversion markups and third-party inducements—both in **absolute EUR** and as **percentage reduction in yield (RIY)** prior to order execution:

```formula
MaComp_BT3_ExAnte_Total_Cost_And_Yield_Drag (1_Year_Holding_Assumed):
 C_entry_EUR = Explicit_Order_Fee + (0.5 * Venue_HalfSpread_Est) + FX_Conversion_Markup_EUR + Issuer_Upfront_Load
 C_ongoing_EUR = Product_TER_Or_Overnight_Swap_Drag_1Yr + Custody_Depot_Fee_Alloc + Retained_Trailer_Inducement
 C_exit_EUR = Explicit_Sell_Order_Fee + (0.5 * Venue_HalfSpread_Est) + FX_Conversion_Markup_Exit

 Total_1Yr_ExAnte_Cost_EUR = C_entry_EUR + C_ongoing_EUR + C_exit_EUR
 Annualized_Return_Drag_Pct = (Total_1Yr_ExAnte_Cost_EUR / Gross_Order_Investment_EUR) * 100%

Worked BaFin Mystery-Shopping Audit Check (EUR 10,000 US Tech Stock Purchase on EUR-Account Neo-Broker):
 Headline Advertised Ticket Commission = EUR 1.00 entry + EUR 1.00 exit = EUR 2.00
 Hidden Embedded FX Auto-Conversion Spread (0.35% each way on EUR/USD) = EUR 35.00 entry + EUR 35.00 exit = EUR 70.00!
 Estimated Market-Maker Implicit Half-Spread = EUR 6.00 entry + EUR 6.00 exit = EUR 12.00
 Total_1Yr_ExAnte_Cost_EUR = 2.00 + 70.00 + 12.00 = EUR 84.00 (0.84% Yield Drag vs 0.02% advertised commission!)
 MaComp BT 3 Rule: Omitting the EUR 70.00 FX conversion markup from the pre-trade ex-ante cost sheet = F3 Breach!
```

![MaComp BT 3 ex-ante cost breakdown showing why EUR 70 embedded FX conversion spread dominates a EUR 1 headline neo-broker stock ticket](/api/figure?type=bars&title=MaComp%20BT%203%20Mystery-Shop%20Audit%3A%20Headline%20Fee%20vs%20True%20Cost&subtitle=Why%20BaFin%20penalizes%20neo-brokers%20that%20omit%20embedded%2035-bps%20FX%20conversion%20spreads%20from%20ex-ante%20PDFs&steps=Headline%20Ticket%20Fee%3A%3AEUR%202.00%20round-trip%20%280.02%25%20visible%20commission%29%7CImplicit%20Venue%20Spread%3A%3A%2BEUR%2012.00%20%280.12%25%20half-spread%20entry%20%2B%20exit%29%7CFX%20Auto-Conversion%3A%3A%2BEUR%2070.00%20%280.70%25%20round-trip%20EUR%2FUSD%20spread!%29%7CMandatory%20BT%203%20Total%3A%3AEUR%2084.00%20%280.84%25%20RIY%20shown%20before%20buy%20button%29&metrics=FX%20COST%20SHARE%3A%3A83.3%25%20of%20Cost%3A%3AEUR%2070%20of%20EUR%2084%20round-trip%7CESG%20TARGET%20CHECK%3A%3AMaComp%20BT%205%3A%3APAI%2C%20Taxonomy%20%26%20SFDR%20Art.%208%2F9%7CHONORAR-BERATUNG%3A%3A%C2%A7%2064%285%29%20WpHG%3A%3AProtected%20German%20fee-only%20title%7CCALL%20RECORD%20ARCHIVE%3A%3A5%E2%80%937%20Years%3A%3A%C2%A7%2083%20WpHG%20Taping%20obligation)

## MaComp BT 5 Sustainability Preferences in Advisory Suitability Reports

Since August 2022—and tightened under **ESMA's 2023/2024 Product Governance & Suitability updates incorporated into MaComp BT 5 and BT 7**—German investment advisers and digital robo-advisers must query every client's **three-category ESG sustainability preferences** (minimum Taxonomy-aligned %, minimum SFDR sustainable investment %, or consideration of Principal Adverse Impacts / PAIs) *after* assessing financial risk tolerance, and document any client-initiated adaptation (*Anpassung der Nachhaltigkeitspräferenzen*) cleanly inside the mandatory **§ 64(4) WpHG Suitability Statement (*Geeignetheitserklärung*)**!

## Frequently asked questions

### Can a German execution-only mobile broker still receive Payment for Order Flow after June 30, 2026?

No. Under MiFIR Article 39a(1)-(2) enacted by Regulation (EU) 2024/791, member states that exercised the transitional grandfathering option (including Germany) must extinguish all domestic PFOF exemptions by June 30, 2026, banning PFOF across all 27 EU states from July 1, 2026 onward.

### What happens during an advisory session if no fund in a German bank’s shelf matches the client’s exact ESG percentage?

Under MaComp BT 7 and MiFID Delegated Regulation 2017/565 Article 54(10), the adviser may NOT recommend a non-matching product unless the client first proactively decides to adapt their sustainability preferences—and that adaptation is recorded strictly for that specific transaction in the Geeignetheitserklärung.

### Are discretionary portfolio managers in Germany allowed to keep mutual fund trailer commissions if they disclose them?

Never. Under § 64(7) WpHG (transposing MiFID II Article 24(8)), discretionary portfolio managers (Finanzportfolioverwalter) and Honorar-Anlageberater are strictly barred from accepting and retaining any third-party monetary inducements—all rebates must be passed through 100% to the client immediately.

### Must ex-ante cost sheets under MaComp BT 3 be provided as a downloadable PDF before every mobile app stock trade?

Under updated MiFID II Quick Fix / RIS electronic-format rules reflected in § 63 WpHG and MaComp BT 3, electronic on-screen cost breakdowns prior to order placement + durable-medium delivery immediately after execution (for distance trades where client consents) satisfy statutory disclosure.


## Source URLs

- https://www.bafin.de/SharedDocs/Veroeffentlichungen/DE/Rundschreiben/2018/rs_1805_macomp_wa.html
- https://www.gesetze-im-internet.de/wphg/
- https://www.gesetze-im-internet.de/wpdverov/
- https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32024R0791

## Citation

- APA: Lukas Lindqvist, CEFA. (2026). BaFin MaComp Circular (BT 3, BT 5 & BT 13): German Inducements, Cost Info & Target Markets. Euro Firm Ledger. https://eurofirmledger.com/bulletins/bafin-macomp-bt-3-bt-13-product-governance-inducement-audits
- Canonical article: [BaFin MaComp Circular (BT 3, BT 5 & BT 13): German Inducements, Cost Info & Target Markets](https://eurofirmledger.com/bulletins/bafin-macomp-bt-3-bt-13-product-governance-inducement-audits)
- Site research index: [Euro Firm Ledger](https://eurofirmledger.com/llms-full.txt)