BREXIT - The unintended consequences of the referendum for financial institutions

28.06.2016252 Mal gelesen
Authorization requirement in so-called notification procedure / single passport for cross-border banking business and financial services

The cross-border activities in the EEA may soon no longer be based on an acquired UK banking license. With the British exit from the Euro zone Britain also separates from the "European passport" with which numerous credit institutions have exercised their business in other EEA Member States.

Upon retirement of Britain from the Single Market financial institutions grounding their banking or financial services on an acquired UK license will have to apply for re-authorisation in a European country to continue their cross-border activities.

Institutions from non-EEA countries offering banking and financial services in Germany, have to form a subsidiary company (§ 32 para. 1, § 33 para. 1 KWG) or open a branch office (§ 32 para. 1, § 53 KWG) in Germany. Transactions operated under permission have to be accounted in the German business unit; accounts and deposits must be kept in this unit.

Also financial institutions of the EEA will have to establish a subsidiary (§ 53b para 2 KWG) in the EEA country they now will have to apply for a banking license at the local authorities.

We support you with the licensing process towards the GermanFederalFinancialSupervisoryAuthority (BaFin) as well as with the formation of a subsidiary in the financial centre of Frankfurt am Main.

Resident in Frankfurt, we have long-standing experience in the areas of banking and regulatory law.

Prof. Dr. Michael A. Veltins                            Monika Soffer

Lawyer                                                           Lawyer, Certified Lawyer for

Tax Lawyer                                                    Bank and Capital       Market Law

mveltins(at.)lsv-legal.com                              m.soffer(at.)lsv-legal.com

 

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