Regulatory Alerts2016-11-18
Notice on the Granting of Authorisation to Provide Financial Services under Section 32(1) of the German Banking Act
The Deutsche Bundesbank issued this notice to mandate that commercial financial service providers in Germany obtain prior written authorization from the Federal Financial Supervisory Authority (BaFin) before commencing operations. It delineates twelve regulated financial services, including investment broking, portfolio management, and proprietary trading, while specifying authorization conditions, application contents, and applicable fees. The framework further addresses cross-border passporting for EEA entities, distinguishes CRR investment firms from standard financial services institutions, and enforces immediate cessation orders and criminal penalties for unauthorised operations.
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