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Apply for a license as a fee-based financial investment advisor

Service Description

As a fee-based financial investment advisor, you advise on financial products for which you receive a fee from the client. You are independent of the product provider and therefore may not receive any commission or other benefits from the provider of the financial products.
If, on the other hand, you work on a commission-based basis, you must apply for a license as a financial investment broker instead.

As a fee-based financial investment advisor, you are limited to certain financial products by a so-called exemption from the German Banking Act. The license 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 marketed in accordance with the German Capital 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.
  • 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 act as a financial investment broker at the same time.

Process flow

In order to obtain a license as a fee-based financial investment advisor, 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.

Who should I contact?

Please contact your local trade office.

Competent authority

The trade offices are responsible.

Requirements

  • You must be personally reliable. This means that in the five years prior to submitting the application you have not been convicted of, for example you have not been convicted of a crime, theft, embezzlement, extortion, fraud, breach of trust, money laundering, forgery of documents, receiving stolen goods, usury or an insolvency offense.
  • 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. information from the debtor register of the enforcement court and information from the insolvency court)
  • Proof of professional liability insurance
  • Proof of expertise (e.g. certificate of having passed the Chamber of Industry and Commerce (IHK) examination, certificate of an equivalent professional qualification) (see further information)
  • Extract from the commercial register for legal entities and commercial partnerships

Please 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

  • Forms: Application form from the competent licensing authority for natural or legal persons
  • Written form required: no
  • Personal appearance required: no

What else should I know?

If you employ staff who are directly involved in providing investment advice, 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 expert examination:

Author

IHK East Thuringia to Gera

The text was automatically translated based on the German content.

Professionally released on

16.01.2024

Source: Zuständigkeitsfinder Thüringen (Linie6Plus)

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