ARTICLE · 25 JULY 2016

Applying For A German Banking Or Financial Services Licence

Reed Smith (Worldwide)

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Due to Brexit developments, for many non-European investors the option to acquire a German banking or financial licence, including the attached benefit of being able to use the European passport regime, is a part of their strategic thinking in terms of their future European business model.

GermanyFinance and Banking

Simon G. Grieser

Jacqui Hatfield

Philipp Bergmann

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Due to Brexit developments, for many non-European investors the option to acquire a German banking or financial licence, including the attached benefit of being able to use the European passport regime, is a part of their strategic thinking in terms of their future European business model.

In the following article, the application process for a German banking or financial services licence is set out.

Certain banking and financial services in Germany require a banking licence pursuant to section 32 of the German Banking Act (Gesetz über das Kreditwesen, KWG). (An English translation of the KWG is available at bafin.de.)

The KWG provides three categories of institution – credit institutions, financial services institutions and financial enterprises – to which different licence requirements apply.

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