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Procedure descriptions

Financial investment brokers - applying for a permit

Financial services companies are included in trades which require a permit.

If you wish to provide certain financial services as a freelance worker, you need to apply for a permit from the competent chamber of industry and commerce.

Please note: In case of partnerships without their own legal personality (for example GbR, OHG, KG), all managing partners require their own permit.

You require the permit if you provide investment advice for the following products or wish to broker contracts concerning the purchase of these investments:

  • Shares in domestic open investment assets, open EU investment assets or foreign open investment assets which are sold in accordance with the Capital Investments Act (Kapitalanlagegesetzbuch).
  • Shares in domestic closed investment assets, closed EU investment assets or foreign closed investment assets which are sold in accordance with the Capital Investments Act (Kapitalanlagegesetzbuch).
  • Investment assets in accordance with § 1 Paragraph 2 of the Assets Investment Act (Vermögensanlagengesetz)

Note: For other financial services, you may require a License for financial service providers in accordance with the German Banking Act. Please check which permit is necessary for your business before making the application.

The permit is valid in the whole of Germany and lasts indefinitely (if the authorities do not revoke it). It can be limited to one or more categories.

Tip: More detailed information concerning the permit procedures, checklists and forms can be found in the portal for finance brokers of the chamber of industry and commerce.

Responsible department

The Chamber of Commerce and Industry in whose district your business is located

Details

Prerequisite

Natural and legal persons are able to make an application.

The requirements for the issuing of a permit are as follows:

  • Personal reliability
    As a rule, a person is not considered to be reliable if they have been subject to a judgement of a court of law in the last five years for one of the following breaches:
    • Crime
    • Theft
    • Embezzlement
    • Blackmail
    • Fraud
    • Breach of trust
    • Money laundering
    • Falsification of documents
    • Handing stolen goods
    • Usury
    • Insolvency offences
  • Controlled financial circumstances, which means that
    • No insolvency proceedings are in force against you
    • You are not entered in the list of debtors
  • Proof of professional indemnity insurance
    Minimum sum insured:
    • 1,230,000.00 euros per insured event and
    • 1,8500,000.00 euros for all other insured events.
  • Proof of the necessary expert knowledge, possible through:
    • Specialist examination by the chamber of industry and commerce or
    • equivalent qualifications and, if possible, relevant professional experience.

Tip: The Internet sites of the chambers of industry and commerce provide information concerning which qualifications are considered equivalent to a specialist examination and what periods of professional experience you may be required to provide proof of.

Procedure

The permit must be applied for at the chamber of industry and commerce which is responsible for you. You can obtain the necessary forms there.

The authorities will check whether your details and documents are correct. In order to prove the expert knowledge, you may be required to take a specialist examination at the chamber of industry and commerce. This is comprised of a written and practical component.

If the chamber of industry and commerce issues the permit, you will be automatically entered in the broker register.

 Should you have received the permit, you must register your company before starting work

Deadlines

You can apply for the permit at any time. However, please keep in mind the different registration deadlines for the specialist examination at the chamber of industry and commerce.

 

Required documents

Note: The documents to be submitted may not be older than three months. This does not apply to proof of the specialist examination.

Costs

Varying fees will be incurred for the issuing of the permit and the specialist examinations. Please contact your chamber of industry and commerce directly.

Miscellaneous

For persons in possession of 34d/34e GewO permits (insurance brokerage and advice), special rules concerning the specialist examination apply. Please contact the chamber of industry and commerce where you wish to take the examination.

 

 

Release note

The German original version of this text was drafted in close cooperation with the relevant departments. The Wirtschaftsministerium released it on 30.08.2019. Only the German text is legally binding. The Federal State does not assume any liability for the translated texts.
In cases of doubt or if you have any questions or problems, please contact the relevant authorities directly.

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