Risk Partners Life Sciences Roundtable 2024, thank you very much! Sign up now for the 26.06.2025 >

Contact us

Whistleblower Protection Act

... is now in force.

Hey #VCs, do you already have a system in place for safe #whistleblowing? And what about D&O insurance cover? 

One month ago today, the German Whistleblower Protection Act came into force. Since July 2, 2023, not only companies with more than 50 employees, but also fund managers or ManCos (capital management companies pursuant to Section 17 (1) of the German Investment Code) are obliged to set up and operate a whistleblower system, regardless (!) of the number of employees. From December 2, 2023, fines will be levied if this has not been done. 

The main aim of the legislator is to offer whistleblowers who report #crimes or serious violations in the corporate sector a protected framework for such communication. The identity of the whistleblower is to be kept technically and legally confidential in order to protect them from sanctions and liability. The legal regulation goes beyond the existing organizational measures that KVGs already have to comply with under the German Money Laundering Act or Section 28 KAGB.

A holistic approach to risk management

We can put you in touch with a LegalTech unit of a renowned law firm that offers a software-based legal service in outsourcing for VCs specifically for this purpose and, in addition to a reporting channel, also maps the internal reporting office from the HinSChG together with the VC. Please do not hesitate to contact us.

Are fines under the Whistleblower Protection Act covered by the D&O?

In principle, the special reporting office officer should also be insured in your D&O wording in accordance with § 12 HinSchG, for example in the extended sense as an employee - or also in the case of outsourcing - in their capacity as a compliance officer or in their capacity as a special officer or person responsible for ensuring compliance as provided for by law.


When it comes to fines in D&O claims handling, insurers sometimes differ greatly in the extent to which fines are actually covered. There are a few insurers who pay fines for acts of negligence, but there are more and more insurers who refuse to cover and even defend against official proceedings by hiring a lawyer (keyword "defense coverage"). This blanket refusal should be critically scrutinized!

How does your D&O cover specifically relate to the regulations on fines under #HinSchG and is the reporting office officer also an insured person in your wording? - Let us check your D&O contract for you individually and without obligation and ensure security vis-à-vis the reporting office officer. Please contact our team at Risk Partners GmbH:

Florian Eckstein, Managing Director
Franziska Merz, Senior Risk Advisor Financial Lines
Miriam Born, Head of Legal - External Counsel

Also read our other blog posts

Being Public
Björn Stressenreuter

Prospectus liability insurance (POSI): Risk Partners publishes for you

Risk Partners on Going Public and the capital market blog on prospectus liability insurance In recent months, we have been able to share our expertise on prospectus liability insurance with a wide audience on two renowned platforms. Here is an overview: Kapitalmarkt.blog In the article "POSI insurance - The protective vest on the capital market", we explain why prospectus liability insurance is an indispensable tool for companies becoming active on the capital market. The article shows in a practical way how such insurance not only minimizes liability risks, but also strengthens investor confidence. GoingPublic Magazine In

Read more "
December 29, 2024
4 pillars of cyber insurance for venture capital and private equity
Cyber Security
Björn Stressenreuter

Cyber insurance Venture capital and private equity

Why cyber insurance does not transfer the core risk of VC & PE funds and why we have invested in Risk Partners cyber master agreements. Why cyber risks are relevant for venture capital and private equity funds With the increasing growth of the cyber crime industry (see Federal Office for the Protection of the Constitution), venture capital (VC) and private equity (PE) funds and their fund managers are also increasingly exposed to cyber risks. For years, this has been reflected in the claims we have been able to support, in which fund managers have ranked first year after year among the industries we advise.

Read more "
December 29, 2024
Cyber Security
Björn Stressenreuter

"Digital Operational Resilience Act" (DORA regulation) from the perspective of venture capital and private equity funds

DORA regulation applies from January 2025. Significance for our private equity and venture capital clients The somewhat unwieldy name "Digital Operational Resilience Act" (DORA for short) has a very serious background and is fundamentally to be welcomed. After all, when we evaluate our claims in the context of cybercrime, PE and VC funds and their KVGs are those with the highest frequency of claims. It can be safely assumed that they are a "worthwhile target group" for cyber criminals based abroad.

Read more "
December 27, 2024
Being Public
Björn Stressenreuter

Risk Partners supports successful uplisting of Formycon AG to the Prime Standard

Congratulations to Formycon AG on its successful uplisting to the Prime Standard of Deutsche Börse on November 12, 2024! Welcome to the Prime Standard league: A new champion of life sciences and biosimilars has successfully made the step from the Scale segment. We proudly congratulate Enno Spillner, Dr. Caroline Redeker, Daniel Marquard and the entire Formycon AG team on this great success and another important milestone on their way to becoming a global champion in the field of biosimilars! Formycon AG has focused on

Read more "
November 14, 2024
Being Public
Björn Stressenreuter

Risk Partners supports successful IPO of Steyr Motors AG

We congratulate Steyr Motors AG on its successful listing in the Scale Segment of the German Stock Exchange on October 30, 2024! Risk Partners had the honor to act as IPO underwriting advisor on this transaction. Our team, led by Florian Eckstein and Björn Stressenreuter, supported Steyr Motors AG in its IPO on the Frankfurt Stock Exchange. Our expertise and comprehensive support were focused on providing Steyr Motors with a safe and successful start on the capital markets. We would like to thank Julian Cassutti and Christoph Cerar from Steyr Motors

Read more "
October 31, 2024
Being Public
florian.eckstein

Global Integrity and Compliance Forum 2024 

𝗚𝗹𝗼𝗯𝗮𝗹 𝗜𝗻𝘁𝗲𝗴𝗿𝗶𝘁𝘆 𝗮𝗻𝗱 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗙𝗼𝗿𝘂𝗺 𝟮𝟬𝟮𝟮𝟰 "D&O and Co. - Plan B to cover personal liability!" Last Friday, Florian had the honor of taking part in the Global Integrity and Compliance Forum at the Ludwig-Maximilians-Universität in Munich. Under the motto "The RULE of LAW in the Era of Integrity & Compliance", international legal experts, company managers, in-house councils and compliance officers from all over the world gathered to discuss the future of good corporate governance in 2024. Key discussions and insights One of the

Read more "
June 14, 2024
Your question has not been answered?
We will be happy to advise you in a free initial consultation.
Get advice now

Receive the Life Sciences Insurance Protection Guide free of charge!

Everything you need to know to optimally protect you and your life sciences / biotech company.