Stand:updated on 20.08.2021 European passport for leasing and factoring institutions that are subsidiaries of credit institutions
Leasing and factoring institutions that are subsidiaries of credit institutions and authorised in one member state of the European Economic Area (EEA) may in principle also perform their activities in another EEA member state by way of the free movement of services (freedom to provide services) or by establishing a local branch (freedom of establishment). Prerequisite for this is that the vast majority of these institutions’ shares are held by one or several CRR credit institutions (at least 90% of the voting rights) and that the other conditions set out in section 53b (7) sentence 1 nos. 1 to 7 of the German Banking Act (Kreditwesengesetz – KWG) are fulfilled.
Leasing and factoring institutions that are not subsidiaries of credit institutions may not use the European passport. They must apply for authorisation if required under the relevant regulations of the EEA member state concerned. In some member states, no authorisation may be required. The supervision of leasing and factoring institutions has not been harmonised under European Union law.
Legal bases
Overview:Key national and European legislation
Article 34 of Directive 2013/36/EU governs the provisions regarding the freedom to provide services and freedom of establishment within the EEA applicable to leasing and factoring institutions that are subsidiaries of credit institutions.
Depending on whether the passport is outgoing or incoming, Article 34 has been transposed into the following national provisions:
- section 24a (3c) in conjunction with section 53b (7) sentence 1 nos. 1 to 7 of the KWG (outgoing passport) and
- section 53b (7) sentence 1 nos. 1 to 7 of the KWG (incoming passport).
Notification procedure
If a leasing or factoring institution that is a subsidiary of a credit institution intends to carry out cross-border activities under the freedom to provide services and the freedom of establishment, the home supervisor of that institution must be notified of this intention.
German leasing and factoring institutions must inform BaFin and the Deutsche Bundesbank of the intended activities (outgoing passport).
The notification must contain the following information:
- statements on the conditions specified in section 53b (7) sentence 1 nos. 1 to 7 of the KWG;
- particulars under section 24a (3) sentence 2 nos. 1 to 3 of the KWG (freedom to provide services) and section 24a (1) sentence 2 nos. 1 to 4 of the KWG (freedom of establishment) and
- corresponding forms as required under Commission Delegated Regulation (EU) No 1151/2014 and Implementing Regulation (EU) No 926/2014.
Leasing and/or factoring institutions from the EEA intending to carry out activities in Germany should contact the supervisory authority of their home country (incoming passport).
Further information
The forms required for submitting notifications can be downloaded under "Additional information".
Contact
BaFin accepts notifications in connection with leasing or factoring either in German or English by post or e-mail to the following addresses:
| Registered office | Division | E-mail address | Postal address |
|---|---|---|---|
| South: Hesse, Thuringia, Saxony, Baden-Württemberg or Bavaria | BA 14 | ba14@bafin.de | BaFin - Bundesanstalt für Finanzdienstleistungsaufsicht Referat BA 14 Graurheindorfer Straße 108 53117 Bonn |
| North: Schleswig-Holstein, Hamburg, Mecklenburg-Western Pomerania, Bremen, Lower Saxony, Saxony-Anhalt, Berlin, Brandenburg, North Rhine-Westphalia, Rhineland-Palatinate or Saarland | BA 15 | ba15@bafin.de | BaFin - Bundesanstalt für Finanzdienstleistungsaufsicht Referat BA 15 Graurheindorfer Straße 108 53117 Bonn |
