The German Ministry of Finance (Bundesministerium der Finanzen – BMF) published its draft law that implements among other topics Directive (EU) 2019/2034 on the supervision of investment firms (Investment Firm Directive - IFD), which must be applied by June 26,2021. The draft law regulates the prudential requirements for investment firms regarding the risks they take on, capital requirements, business organization, and the requirements for management and supervisory bodies, considering their size and the business models and risk profiles of investment firms. The draft law also serves to implement Art. 2 of Directive (EU) 2019/2177 amending Solvency II, which must be implemented by June 30, 2021. The amendments to the Insurance Supervision Act (Versicherungsaufsichtsgesetz - VAG) required for this purpose mainly concern strengthening the exchange of information between the supervisory authorities and the European Insurance and Occupational Pensions Authority (EIOPA). The draft legislation introduces the Act on the Supervision of Investment Firms (Wertpapierfirmengesetz - WpFG) and amends the German Banking Act (Kreditwesengesetz – KWG), the Recovery and Resolution Act (Sanierungs- und Abwicklungsgesetz – SAG), the German Investment Code (Kapitalanlagegesetzbuch – KAG), the VAG, the regulation delegating powers to issue ordinances to the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin), and the regulation on the levying of fees and apportionment of costs under the Financial Services Supervision Act.