Information - Services - Formalities by subjects - Business start-up preparations - Companies subject to licensing and monitoring requirements - Fee-based financial investment advisor; application for a permit - Dienstleistungsportal Bayern

Description

As a fee-based financial investment advisor, you independently broker financial products to clients in exchange for a fee from the client. However, you may not receive any commissions or benefits from the provider of the financial products. In this case, you must apply for a permit as a financial investment broker. However, you may not act as a financial investment intermediary and fee-based financial investment advisor at the same time.

As a fee-based financial investment advisor, you are restricted to certain financial products by the so-called area exception of the German Banking Act. The permit covers (optionally) three product categories:

• Units or shares in domestic open-ended investment funds, open-ended EU investment funds or foreign open-ended investment funds that may be distributed in accordance with the German Investment Code.
• Units or shares in domestic closed-end investment funds, closed-end EU investment funds or foreign closed-end investment funds that may be distributed in accordance with the German Investment Code.
• Asset investments

In addition to the permit, you must also be entered in the register of intermediaries. You can submit the application for this together with the permit application.

The content of your permit can be restricted and linked to ancillary provisions if, in the opinion of the authority, this is necessary for the protection of the general public or the clients.
Under the same conditions, the subsequent inclusion, amendment and supplementation of conditions are also permitted.

Prerequisites

• The reliability required for the business operation, i.e. you have not been convicted of fraud or other crimes in the last five years
• Financial circumstances in order, i.e. you are not in private insolvency or registered in the debtors' register.
• Professional liability insurance with a minimum coverage of 1,130,000.00 Euro for each insured event and 1,700,000.00 Euro for all insured events in one year in total.
• You can prove the required expertise by passing an IHK examination or by equivalent training qualifications and possibly corresponding professional experience

Procedure

You send the application for permission with all supporting documents to the authority responsible in your federal state.

• The authority checks on the basis of your information and documents whether the legal requirements for the granting of permission are fulfilled.
• If you meet the requirements, you will receive the permit in writing by mail.
• Before you start your activity, you must submit an application for inclusion in the Register of Intermediaries.

If you have received the permit, you must register your trade before you start your activity.

Deadlines

none

Processing time

A few weeks after all documents are complete.

Required documents

• The following documents are required:
  • Proof of personal reliability: certificate of good conduct and information from the central business register (both for submission to an authority).
  • Proof of orderly financial circumstances: Information from the insolvency court as to whether proceedings have been opened (so-called negative certificate).
  • Extract from the debtors' register of the central enforcement court
  • Proof of existing pecuniary loss liability insurance (certificate in sample wording)
  • Proof of expert knowledge (IHK proof of expert knowledge examination or proof of equivalent professional qualification, see also further information).
  • For legal entities and commercial partnerships: Extract from the commercial register of the country in which the company's head office is located.
  • If applicable, translation of the (foreign language) extract from the commercial register

Fees

• Costs are incurred. The exact amount can be found in the fee schedule of the competent authority.

Legal bases

• § 34h Abs. 1 Gewerbeordnung (GewO)
• § 11a Abs. 3a Gewerbeordnung (GewO)
• Verordnung über die Finanzanlagenvermittlung (Finanzanlagenvermittlungsverordnung - FinVermV)

Remedy

Opposition

Links to more information

• Übersicht Finanzanlagenvermittler und -berater

  Übersicht über die Zuständigkeiten für Finanzanlagenvermittler und -berater des Deutschen Industrie- und Handelskammertages

• § 4 Verordnung über die Finanzanlagenvermittlung (Finanzanlagenvermittlungsverordnung - FinVermV)

  Alternativen zur Sachkundeprüfung

• Merkblatt zur Bereichsausnahme für die Vermittlung von Investmentvermögen und Vermögensanlagen der Bundesanstalt für Finanzdienstleistungsaufsicht

Related issues

• Financial investment intermediary or fee-based financial investment advisor; submission of the audit report or negative declaration