Establish licensing requirement for companies in the financial sector
Source: BUS Rheinland-PfalzVarious supervisory laws regulate the licensing requirements for transactions on the capital market in Germany:
- the German Banking Act (KWG) regulates the licenses 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 the e-money business
- the Capital Investment Code (KAGB) regulates investment funds
The German Federal Financial Supervisory Authority (BaFin) examines whether transactions by new companies prior to market entry or new business models of companies already operating on the market require a license in accordance with statutory regulations. This is the case for most transactions in the financial sector and serves to ensure the integrity of the financial market and the protection of consumers.
As 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 license, BaFin must determine in these cases whether your business is subject to the licensing 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 determines the licensing requirement upon your application. You can submit this by email or post. Fintech companies can also use an online contact form.