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Apply for a license as a financial investment broker

Service Description

As a financial investment broker, you broker certain financial products to customers or advise customers on them, for which you generally receive a commission from the provider of the financial product. As a financial investment broker, you are restricted to certain financial products and activities by a so-called exemption from the German Banking Act. The license covers (optionally) three product categories:

  • Units or shares in domestic open-endedinvestment funds, open-ended EU investment fundsor foreign open-ended investment funds that aredistributed in accordance with the German Investment Codeare permitted
  • Units or shares in domestic closed-end investment fundsinvestment funds, closed-end EU investment funds or foreign closed-end investment fundsclosed-end investment funds that may be distributed in accordance with theInvestment Code may be distributed
  • Investments

Permission may be granted to a natural person or a legal entity. Partnerships such as the civil law partnership (GbR), the general partnership (OHG) or the limited partnership (KG) cannot be granted permission. In these cases, each managing partner must apply for their own permit.

In addition to obtaining a license, you must also be entered in the register of intermediaries immediately after commencing your activities.

Your license may be restricted in terms of content or subject to conditions if this is necessary to protect the general public or investors.

You cannot work as a fee-based financial investment advisor at the same time.

Process flow

In order to obtain a license as a financial investment broker, you must submit a corresponding application together with the necessary documents to your authority.

  • At the same time as your application, you can also apply for entry in the register of intermediaries.
  • The competent authority will check whether you meet the requirements based on the information you provide and the documents you submit.
  • If you meet all the licensing requirements, you will receive the license.

Competent authority

The local Chamber of Industry and Commerce is responsible.

Requirements

  • You must be personally reliable. This means, for example, that you have not been convicted of a crime or theft, embezzlement, extortion, fraud, breach of trust, money laundering, forgery, receiving stolen goods, usury or an insolvency offense in the five years prior to submitting the application.
  • This also applies to persons who are entrusted with the management of the company or a branch office.
  • They must have orderly financial circumstances. This means, for example, that no insolvency proceedings have been opened against your assets or that you are not entered in the debtor register of the central enforcement court.
  • You must have professional liability insurance.
  • You must be knowledgeable, e.g. be a "Certified Financial Investment Specialist IHK" or have an equivalent professional qualification.

Which documents are required?

  • Proof of personal reliability (e.g.Certificate of good conduct for submission to an authority,information from the central trade register,certificate in tax matters from the tax office)
  • Proof of orderly financial circumstances (e.g.e.g. information from the debtor register of thecentral enforcement court and information from theinsolvency court)
  • Proof of professional liability insurance
  • Proof of expertise (e.g. certificate ofpassed IHK examination orcertificate of an equivalent professional qualificationprofessional qualification) (see further information)
  • Extract from the commercial register for legal entities andcommercial partnerships

Note:
You can find out which documents are required in your specific case on the application form from the competent authority.

What are the fees?

Fees apply. The exact amount can be found in the fee schedule of the local licensing authority or registry.

What deadlines do I have to pay attention to?

The permit is valid indefinitely.

Processing duration

Once all documents have been submitted, the application will be processed. This may take several weeks.

Legal basis

Applications / forms

You can appeal against the decision on your application for a permit.
Which legal remedies can be lodged (objection or appeal to the administrative court) varies depending on the federal state. Detailed information on admissible legal remedies can be found in the information on legal remedies in the decision on your permit application.

Appeal

  • Application form:Application form of the competent licensing authority fornatural or legal person
  • Written form required: no
  • Personal appearance required: no

What else should I know?

If you employ staff who are directly involved in investment advice or brokerage, you must ensure their reliability and expertise and also have them entered in the register of intermediaries.

Further Information

Here you will find an overview of the professional qualifications that are equivalent to the certificate of competence examination:

Author

The text was automatically translated based on the German content.

Technically approved by

Thuringian Ministry of Economics, Science and Digital Society

Professionally released on

27.05.2022

Source: Zuständigkeitsfinder Thüringen (Linie6Plus)

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