responsibility finder
Schleswig-Holstein

Establish licensing requirements for undertakings in the financial sector

Source: Zuständigkeitsfinder Schleswig-Holstein (Linie6PLus)

Service Description

Various supervisory laws regulate the licensing requirements for transactions on the capital market in Germany:

  • the German Banking Act (Kreditwesengesetz, KWG) regulates the permits for banking transactions and financial services
  • the Insurance Supervision Act (VAG) regulates the supervision of insurance companies
  • the Payment Services Supervision Act (ZAG) regulates payment services and e-money business
  • The German Investment Code (KAGB) regulates investment funds.

The Federal Financial Supervisory Authority (BaFin) examines whether transactions by new companies before they enter the market or new business models of companies already operating on the market require permission under statutory regulations. This is the case for most transactions in the financial sector and serves the integrity of the financial market and the protection of consumers.

Since the legal basis does not provide a reliable statement for every business model as to whether you as an entrepreneur or your company require a permit, BaFin must determine in these cases whether your business is subject to the permit requirement. The reason for this is the permanent and rapid development of business models in the financial sector as well as the variety of circumstances that must be covered by the law.

BaFin will determine whether you are subject to the licensing requirement on the basis of your application. You can submit this by e-mail or by post. Fintech companies also have an online contact form at their disposal.


Process flow

You should submit the application for the determination of the obligation to obtain a licence informally in writing or by e-mail (exception: fintech business models, see below).

  • Please compile the required documents and also include the following information
    • Notification of who wants to operate the business, how and in what form.
    • Company name of the business
    • Business address of the company
    • Name and address of the inquirer
    • Relationship of the inquirer to the company
  • Send your informal application by mail or e-mail to BaFin.
  • You will receive an email, a letter or the notice with the assessment of the permission requirement.

Fintech business models can also use the contact form for fintechs on BaFin's website.

If you have any questions regarding the procedure, please contact BaFin's Financial System Integrity (IF) department. Please include "Permission requirement for financial transactions" in the subject line of email inquiries.

Requirements
  • You are a company in the financial sector and
    • are about to enter the market or
    • are launching a new business model on the market and
    • it cannot be clearly determined on the basis of the relevant supervisory law whether your business model is subject to the licensing requirement under the supervisory laws.
Which documents are required?
  • detailed description of the business project
  • draft contracts and, if applicable, articles of association
  • advertising material
What are the fees?

If the determination of the duty to obtain a license is made by administrative act, fees in the amount of

  • EUR 10,000.00 (KWG and KAGB)
  • EUR 6,820 (VAG) and
  • EUR 5,000 (ZAG)

If the decision is made by simple letter, no fees are incurred.

What deadlines do I have to pay attention to?

There are no deadlines for you.

Processing duration

The processing time for the application can take from a few days to 2 months. It also depends on whether BaFin has all the relevant information.

Legal basis
Appeal
  • In the case of a notice pursuant to sections 4 KWG, 4 para. 4 ZAG, 4 VAG, 5 para. 3 KAGB: Objection.
  • Otherwise, no legal remedies are available.
Applications / forms

Forms: no
Online procedure possible: partially (only for Fintechs)
Written form required: no
Personal appearance required: no


Author
Technically approved by

Federal Ministry of Finance

Process flow

You should submit the application for the determination of the obligation to obtain a licence informally in writing or by e-mail (exception: fintech business models, see below).

  • Please compile the required documents and also include the following information
    • Notification of who wants to operate the business, how and in what form.
    • Company name of the business
    • Business address of the company
    • Name and address of the inquirer
    • Relationship of the inquirer to the company
  • Send your informal application by mail or e-mail to BaFin.
  • You will receive an email, a letter or the notice with the assessment of the permission requirement.

Fintech business models can also use the contact form for fintechs on BaFin's website.

If you have any questions regarding the procedure, please contact BaFin's Financial System Integrity (IF) department. Please include "Permission requirement for financial transactions" in the subject line of email inquiries.

Requirements

  • You are a company in the financial sector and
    • are about to enter the market or
    • are launching a new business model on the market and
    • it cannot be clearly determined on the basis of the relevant supervisory law whether your business model is subject to the licensing requirement under the supervisory laws.

Which documents are required?

  • detailed description of the business project
  • draft contracts and, if applicable, articles of association
  • advertising material

What are the fees?

If the determination of the duty to obtain a license is made by administrative act, fees in the amount of

  • EUR 10,000.00 (KWG and KAGB)
  • EUR 6,820 (VAG) and
  • EUR 5,000 (ZAG)

If the decision is made by simple letter, no fees are incurred.

What deadlines do I have to pay attention to?

There are no deadlines for you.

Processing duration

The processing time for the application can take from a few days to 2 months. It also depends on whether BaFin has all the relevant information.

Legal basis

Appeal

  • In the case of a notice pursuant to sections 4 KWG, 4 para. 4 ZAG, 4 VAG, 5 para. 3 KAGB: Objection.
  • Otherwise, no legal remedies are available.

Applications / forms

Forms: no
Online procedure possible: partially (only for Fintechs)
Written form required: no
Personal appearance required: no


Author

Technically approved by

Federal Ministry of Finance

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