Apply for a permit as a financial investment broker
service description
As a fee-based financial investment advisor, you advise independently on financial products, working for a fee from the customer. However, you may not receive any commissions or benefits from the provider of the financial products. In this case, you must apply for a license as a financial investment broker. However, you may not work as a financial investment broker and a fee-based financial investment advisor at the same time.
As a fee-based financial investment advisor, you are restricted to certain financial products due to the so-called area exception of the German Banking Act.
The permit 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 distributed under the 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 under the German Investment Code.
- Investments within the meaning of Section 1 Paragraph 2 of the Investment Act
Your permit may be restricted in terms of content or subject to conditions if the authority considers this necessary to protect the general public or investors. Under the same conditions, the subsequent inclusion, modification and addition of conditions is also permitted.
procedure
You must apply for permission to work as a fee-based financial investment advisor from the relevant authority. Individuals (natural persons) apply for permission themselves or through authorised third parties. In the case of legal entities, the application is made by their legal representatives or by third parties authorised in writing.
Once you have submitted the application and all documents are complete, the responsible authority will check whether you meet all the requirements.
If you meet all the requirements, you will be granted permission to work as a professional fee-based financial investment advisor in the form of a permit.
You may only begin your activity once you have received permission. At the same time as you begin your activity, you must register the business with the authority responsible for registering businesses in accordance with Section 14 of the Trade Regulation Act. In addition, after starting your activity as a fee-based financial investment advisor, you must immediately submit an application for entry in the register in accordance with Section 11a Paragraph 1 of the Trade Regulation Act.
Competent authority
Please contact the relevant trade office.
Alternatively, you can contact the Point of Single Contact in Rhineland-Palatinate. The Point of Single Contact is a public body through which you can complete all administrative procedures and formalities required to start and carry out your service activity and to have a foreign professional qualification recognised. You can find more information on the Point of Single Contact website.
requirements
In order to be granted permission to act as a professional fee-based financial investment advisor, you must
- be personally reliable,
- orderly financial circumstances and
- have professional liability insurance and
- provide evidence of having successfully passed a specialist knowledge examination at a Chamber of Commerce and Industry or of an equivalent professional qualification.
If the permit is applied for by presenting the § 34f permit certificate (for financial investment brokers), no check of reliability, financial circumstances and expertise will be carried out. The § 34f permit expires when the § 34h permit for fee-based financial investment advisors is granted.
What documents are required?
- Identity card or comparable identification document (copy)
- Non-EU citizens: Residence permit (copy)
- Evidence of the corporate legal form
- Company headquarters in Germany: for registered companies, current register extract, otherwise the partnership agreement or the articles of association
- Company headquarters abroad: Documents from that country proving the legal form.
- Personal reliability
- Residence in Germany: Certificate of good conduct for submission to an authority, information from the Central Trade Register for submission to authorities
- Residence abroad: Documents from your home country proving your personal reliability to perform the desired service.
- Orderly financial circumstances
- Extract from the register of debtors of the central enforcement court
- Information from the insolvency court as to whether proceedings have been opened (so-called negative certificate)
- Proof of existing professional liability insurance (certificate in sample wording)
- Proof of expertise (IHK certificate of expertise or proof of equivalent professional qualification)
- If necessary, translation of the (foreign-language) extract from the commercial register
Notice:
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- In the case of partnerships (commercial companies), each managing partner must submit an application and the necessary documents.
What fees apply?
Depends on the respective administration fee schedule of the state or on the fee statutes of the bodies responsible under state law.
What deadlines do I need to consider?
The permit must be issued before the activity begins, so an application must be submitted in good time (a few weeks before the intended start of operations).
You must notify the office responsible for business registrations at the same time when you start your activity.
legal basis
Section 34f paragraph 1 of the Trade Regulations (GewO)
legal remedy
contradiction
What else should I know?
In addition to the permit, you must also be registered in the agent register. People who are directly involved in the consultation must also be registered in the agent register.
They may only employ persons who are directly involved in the advice if they ensure that these persons have proof of their expertise and have checked whether they are reliable.
Violations of the “required” permit requirement and violations of enforceable conditions constitute administrative offenses that are punishable by a fine.
Applications / Forms