Apply for a license for financial service providers

You must apply for the license in writing:

• The forms from the Implementing Regulation (EU) 2017/1945 must be used for a permit to provide the elements of § 1 para. 1 sentence 2 no. 4, 10 para. 1a sentence 2 nos. 1 to 4 or 11 KWG. Complete the following forms:

  • Form for the application for authorization as an investment firm
  • if applicable: List of members of the management body
  • if applicable: Notification of changes to the members of the management body

• Otherwise, you can submit the application informally.

• Please send the application and the required documents in triplicate to BaFin.

• BaFin will review your application.

• You will then receive notification of BaFin's decision by post.

• Proof of sufficient initial capital
  • based on paid-in capital and reserves
  • depending on the type of financial services EUR 25,000 to 50,000
  • Alternatively: appropriate insurance (sum insured depends on the type of financial services)
• Financial services institutions that only provide third-country deposit brokerage, foreign exchange business, factoring or finance leasing: no reserves
• Financial portfolio manager: own funds corresponding to at least one quarter of the costs shown in the profit and loss account of the last annual financial statements under general administrative expenses, depreciation and value adjustments on intangible and tangible assets.
• Sole trader or commercial partnership: risk assets of the owner or the personally liable partners are included in the assessment of the institution's solvency
• Evidence of the professional and personal suitability of the management

• founding documents, articles of association or articles of incorporation (certified copies)
• Suitable proof of the funds required for business operations
• Details of the managing directors
• Information required to assess the reliability of the applicants and managers in the form of a declaration of no criminal record (forms and online services)
• Information required to assess the professional suitability of the owners and managers:
  • detailed, complete, signed curriculum vitae of each owner or manager,
  • supplemented by at least the certificates of employment terminated in the last 3 years
• a viable business plan stating the type of business planned
  • stating the reasons for its future development
  • including budgeted balance sheets, budgeted profit and loss accounts for the first three financial years
• a detailed description of the intended course of business
• where drafted: Sample of the intended
  • customer contracts,
  • management contracts,
  • account or deposit powers of attorney and
  • general terms and conditions
• Presentation of the organizational structure of the institution including organizational chart
  • with information on planned branches and
  • whether the cross-border provision of financial services is intended, and
  • a statement as to whether it is intended to outsource areas to another company
• A description of the planned internal control procedures with an explanation of how compliance with the obligations under the German Banking Act and the German Securities Trading Act is to be ensured
• If significant shareholdings are held in the institution:
  • Details of the holders of significant holdings
  • Indication of the amount of these holdings
  • Information necessary for assessing the reliability of the owners or legal representatives or personally liable partners (see above: declaration of exemption from criminal liability, BaFin model declaration)
• If applicants or owners of significant shareholdings belong to corporate groups: Presentation of the group structure, group statement
• Disclosure of facts that indicate a close connection between the financial services institution and other natural persons or other companies
• Notifications and documents in accordance with Section 2c of the German Banking Act in conjunction with the Holder Control Ordinance
• for securities trading companies in the legal form of a sole trader: statement by the proprietor as to the extent to which he has taken appropriate precautions to protect clients in the event of the cessation of his business activities, for example in the event of death or legal incapacity. The statement contains the consent of the representative named therein and the representative's declaration of reliability (see above: declaration of exemption from criminal liability, BaFin model declaration), provided the representative is a natural person.

For financial services institutions applying for a license pursuant to Section 1 (1a) sentence 2 no. 1- 4 or 11, (1a) sentence 2 no. 4 or no. 10 of the German Banking Act:

• Information in accordance with the Delegated Regulation (EU) 2017/1943
• Form of the Implementing Regulation (EU) 2017/1945

• Procedural costs: EUR 4,545 to EUR 10,160
• As an institution, you must also reimburse BaFin for the costs of ongoing supervision. Costs for audits initiated by BaFin and certain individual measures are charged separately (separate reimbursement, fees). Otherwise, the costs are allocated proportionately to the individual institutions.

Application for permission: before commencing business activities

6 months from complete application

• §Section 1 of the German Banking Act (KWG)

Forms: partly available for download

Online procedure possible: no

Written form required: yes

Personal appearance required: no

• Form for the application for authorization as an investment firm
• Form: List of members of the governing body
• Form: Notification of changes to the members of the governing body

03.02.2020