Regulation in Property Valuation & Wealth Management: Opportunities Instead of Obstacles
Dennis Ritter
21 May 2025
A regulatory change is imminent, as since the introduction of CRR III on 1 January 2025 and the ongoing requirements of MiFID II, the hurdles for banks, asset managers and real estate advisors are increasing. However, behind the regulatory complexity lies enormous optimization potential, if the right digital tools are used.
Why regulation means not only risk but also opportunity
The wave of regulation continues. Capital requirements are increasing, documentation obligations are growing and ESG criteria are becoming the norm. Particularly affected: Real estate valuations and wealth management.
CRR III introduces a new standard with the term "Property Value" in real estate valuation. MiFID II, on the other hand, requires comprehensive transparency in the investment advisory process. Traditional tools like Excel spreadsheets are no longer sufficient.

New requirements for real estate valuation – what is changing
From market value to property value
The "Property Value" according to CRR III must be conservative, transparent, and realizable in the long term. Expected price increases must not be factored in. Two procedures are available:
Loan-to-value method according to BelWertV
In this method, the property value is determined based on the loan-to-value ratio. This is the value that is realizable in the long term and was already established in the past through regulation. This method corresponds to the German Loan-to-Value Valuation Regulation (BelWertV) and is particularly suitable for banks that must meet high documentation standards.
Market value method with portfolio adjustment
Alternatively, the current market value can also be used. However, only on the condition that a follow-up review is carried out. This must ensure that the value does not exceed the long-term sustainable level. The adjustment can be portfolio-based on statistical market data.
Real estate credit privileging and risk weights
Real estate-secured positions are now categorized more strictly:
Residential properties
Commercial properties
ADC (Acquisition, Development, Construction)
This distinction has massive implications for equity requirements. An incorrect classification approach can lead to up to 150% risk weight. More precise definitions of these terms can be found in the white paper 'Regulation in digital wealth management and real estate valuation'.

Wealth management between efficiency and regulatory compliance
MiFID II forces banks to conduct continuous suitability assessments, reasons for product recommendations, and cost transparency. This results in longer advisory processes, often lasting over 60 minutes.
The solution: automated, digital processes that seamlessly integrate regulation without compromising the quality of advice.
The digital answer: fincite • cios & PriceHubble
A system for everything
The software solution fincite • cios offers All-in-One Wealth Management Software, which covers the entire value chain from onboarding to reporting. Integrated, among other things:
MiFID II-compliant advisory process
Suitability statements & ex-ante cost information
Regulatory verification mechanisms with automated documentation
Average time savings: 12 weeks per advisor per year.
Real estate valuation meets AI
PriceHubble enhances fincite • cios with a data-driven, EBA-compliant evaluation of real estate, including:
Live market analysis
Determination of the conservative "Property Values"
Integration into overall assets and portfolio allocation
Automatic monitoring & action recommendations
The 360° aggregation of all customer assets including real estate represents another decisive advantage. Through integration with PriceHubble, real estate values can be assessed in real-time and included in the overall asset consideration. This enables more precise asset allocation and opens up new advisory approaches that consider the entire asset spectrum of the customers.
- Dennis Ritter, Lead Private Banking Germany, fincite

Conclusion: Those who take digitization seriously gain a double regulatory advantage
The combination of digital tools and regulatory know-how not only enables clean compliance with regulations but also provides strategic advisory expertise with real added value for clients.
Now seize the opportunity to restructure your compliance management. Efficient, secure, and future-oriented. Do you want to know how you can advise more efficiently in compliance matters or how you can implement the solution directly in your organization?
Then download the full white paper from fincite & PriceHubble now or contact our WealthTech experts and arrange a free consultation. We look forward to hearing from you!
Frequently Asked Questions
What is CRR III?
CRR III (Capital Requirements Regulation III) is a revised EU regulation that comes into effect from January 2025, defining new capital requirements for banks. It includes, among other things, stricter guidelines for real estate valuation, such as the introduction of the term "Property Value", as well as new risk weights for residential and commercial properties. The aim is to achieve more stable capital coverage and a more realistic valuation of collateral.
What impact does CRR III have on real estate valuation?
CRR III requires banks to value properties more conservatively. Expected price increases may not be taken into account. Instead, methods like the loan-to-value method or an adjusted market value method are used. This adjustment directly influences equity requirements and the risk assessment of real estate loans.
How does MiFID II influence the investment advisory process?
MiFID II increases the requirements for transparency and documentation in the investment advisory process. Advisors must provide a suitability assessment, complete cost transparency, and a product-related advisory history. Digital tools like fincite • cios help implement these regulatory requirements efficiently and audit-proof.
Why is digitization crucial for regulatory processes?
Without digital processes, adhering to current regulations such as CRR III or MiFID II is hardly efficient. Manual workflows are prone to errors and time-consuming. Platforms like fincite • cios enable automated, compliant advisory, including documentation, reporting, and real-time real estate valuation.
What benefits does integrating real estate valuations into investment advice offer?
By integrating current real estate values, such as through PriceHubble, banks and advisors can realistically represent the entire customer assets. This improves asset allocation, opens up new cross-selling potentials, and strengthens customer loyalty through comprehensive advice.