The financial regulator BaFin is apparently tightening the thumbscrews at Allianz after the hedge fund scandal in the USA.
The Federal Financial Supervisory Authority (BaFin) has asked the insurer to improve its internal control mechanisms and to regulate responsibilities more clearly, a person familiar with the processes told the Reuters news agency on Friday.
"Clearly there must be consequences," the insider said.
BaFin set Allianz a deadline to implement the requirements.
The "Wirtschaftswoche" was the first to report on the corresponding letter to the insurer.
BaFin did not want to comment on this and referred to its duty of confidentiality.
An Allianz spokesman also did not comment on this.
According to the report, a spokesman for “Wirtschaftswoche” said that the Munich insurer “always meets the highest risk management and compliance standards” and is working on continuous improvements.
Reuters had already learned in September last year - shortly after the billion-dollar affair involving hedge funds of the US subsidiary of Allianz Global Investors (AllianzGI) - that the Bonn authority had started its own investigation into the case.
The hedge funds set up under the name "Structured Alpha" had suffered billions in losses when the markets collapsed in the first corona shock.
The US Department of Justice accused the chief investor for several of these funds and two of his fund managers of having deceived investors for years by manipulating the development of the funds and the risks hidden in them with fake numbers.
Allianz settled the affair in the spring against compensation from investors and fines from the US authorities totaling six billion dollars.
AllianzGI must also withdraw from the USA.