Topic Authorisation requirements Authorisation requirement
Article from BaFin's 2017 annual report
Many providers make use of the facility to have their projects reviewed by BaFin to find out whether they are subject to authorisation requirements. BaFin received 1,208 enquiries relating to authorisation requirements in 2017 (previous year: 1,022). It dealt with 923 authorisation queries in the year under review (previous year: 1,150), and those enquiring thus obtained legal certainty as to whether their project required authorisation under the applicable laws (see info box "Authorisation requirements”).
Authorisation requirement
BaFin's responsibilities include examining the business of new market participants or new business models of established providers to determine whether they require authorisation under supervisory laws. Providers conducting banking business or providing financial services under the German Banking Act (Kreditwesengesetz), conducting insurance business under the German Insurance Supervision Act (Versicherungsaufsichtsgesetz), providing payment services under the German Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz) or managing investment funds within the meaning of the German Investment Code (Kapitalanlagegesetzbuch) require authorisation for this business. If providers have already commenced an activity requiring authorisation without having obtained authorisation from BaFin, the Supervisory Authority enforces the authorisation requirement and ensures that the business is discontinued and any transactions wound up immediately. BaFin provides information on this topic on its website at www.bafin.de. Depending on the nature of the case, BaFin may file a complaint with the prosecuting authorities against the operators responsible. For providers of new business models, it is expedient to make an initial self-assessment. To help with this process, BaFin has published guidance notices about the various transactions requiring authorisation on its website.
