{"id":6528,"date":"2019-03-29T13:16:13","date_gmt":"2019-03-29T11:16:13","guid":{"rendered":"https:\/\/winheller.com\/blog\/en\/?p=6528"},"modified":"2020-07-27T09:49:16","modified_gmt":"2020-07-27T07:49:16","slug":"bafin-banking-license-brexit","status":"publish","type":"post","link":"https:\/\/winheller.com\/blog\/en\/bafin-banking-license-brexit\/","title":{"rendered":"Banking License and Brexit: Here is the Cost of a German BaFin License"},"content":{"rendered":"

The UK is presently heading for a \u201chard\u201d Brexit. If this happened, the country would leave both the EU and the European Economic Area. Many UK banks and financial services providers are therefore right to consider relocating their domicile or business<\/strong> to the continent and especially to Germany.<\/p>\n

\"Banking<\/a>

In case of a no-deal Brexit, companies from the UK would need the license of a EU member state.<\/p><\/div>\n

The background is that, in case of a no-deal Brexit<\/strong>, companies from the UK would no longer be able to carry on their business or provide financial services in other countries of the European Economic Area by virtue of the so-called European Passport. In such case, they would need the license of a member state. In Germany, the necessary license is the so-called BaFin license<\/a><\/strong>.<\/p>\n

For all those endangered by Brexit and other financial services providers, we are taking a look at the fees involved in an authorization procedure with the Federal Financial Supervisory Authority (BaFin).<\/p>\n

Costs of the Authorization Procedure in Germany<\/h3>\n

An application for a BaFin license<\/a><\/strong> is, in principle, subject to a fee. The amount of the fee will depend on the type of banking business and\/or the financial services applied for in the individual case. The relevant provision in this context is contained in section 2 (1) of the German Regulation on the Imposition of Fees and Allocation of Costs pursuant to FinDAG (FinDAGKostV)<\/em> in conjunction with the appended schedule of fees. The abbreviation FinDAG refers to the Act Establishing the Federal Financial Supervisory Authority (Finanzdienstleistungsaufsichtsgesetz;<\/em> \u201cFinDAG\u201d<\/strong>).<\/p>\n

The rates for an authorization to provide financial services<\/strong>, e.g. investment broking or financial portfolio management, range from at least EUR 4.545 up to EUR 10.160.<\/p>\n

If an applicant additionally wishes to obtain a German authorization to conduct banking business in Germany<\/strong> (e.g. deposit business or lending business), the fee can increase to up to EUR 22.295. In this context, it is important to note that the fees may be charged even if an applicant withdraws the application for authorization or if BaFin denies the application.<\/p>\n

Costs of Ongoing Supervision<\/h3>\n

Furthermore, it must be noted that BaFin<\/strong> allocates its current costs to the institutions it supervises, including<\/p>\n