Banking regulatory law (BaFin license)

By now, nearly all areas of banking and capital market law require that providers of commercial services obtain a license from the Federal Financial Services Regulatory Authority (“BaFin license”).

Obtaining a BaFin license for a bank or financial services provider is often tied to the fulfillment of numerous conditions, including, in particular, the personal and professional suitability of the provider’s managers. As a first step, we will review whether your business model requires such a license. In the best case scenario, the licensing requirement can be avoided altogether by making slight changes to the structure of the operations or the offered product or service.

If a BaFin license is required, we will review the requirements and conditions for obtaining the license, prepare the application for issuance of the license in close cooperation with you, and represent your interests in the licensing proceeding and in the course of the subsequent, ongoing supervision by the BaFin. We will assist you with drafting articles of associations and partnership agreements, general terms and conditions, and any other compliance policies, and on a regular basis apprise you of any relevant changes in German law.

Even if a full-blown BaFin license is not required, a license may however be required under the German Business Code (GewO). In particular, licenses under § 34f of the German Business Code (financial investment brokers) and § 34f of the German Business Code (fee-based financial investment advisors) play an important role in professional and consulting practice.

At all stages of the licensing process, we advise providers, correspond with regulatory authorities, and settle specific legal issues. Of course, we also support companies that already hold a license and have to comply with ongoing reporting and notification obligations. This is a material aspect of corporate compliance when providing services that require a license.