Please enter a search term.

Please note:You can only obtain complete information if you indicate the place of residence, the place of business or the building project, depending on the procedure.

Apply for permission as a fee-based financial investment advisor


You require a license under trade law to act as a fee-based financial investment advisor if you

  • advise on transactions involving certain financial instruments and your recommendation is based on an examination of the investor's personal circumstances (Section 1 (1a) (1a) of the German Banking Act),
  • you provide professional advice on financial investments within the meaning of Section 34f (1) (1), (2) or (3) of the German Trade Regulation Act (Gewerbeordnung) and
  • this advice is not provided on a commission basis by a provider of financial investments, but only in return for a fee paid by your customer.

The investments referred to in § 34f paragraph 1 number 1, 2, or 3 of the Trade, Commerce and Industry Regulation Act (Gewerbeordnung) are the following

  • Units or shares in domestic open-ended investment funds, open-ended EU investment funds or foreign open-ended investment funds that may be distributed in accordance with the German Investment Code (Kapitalanlagegesetzbuch) (open-ended funds),
  • Units or shares in domestic closed-end investment funds, closed-end EU investment funds or foreign closed-end investment funds that may be marketed in accordance with the German Investment Code (closed-end funds), and
  • Investments as defined in Section 1 (2) of the German Investment Act (Vermögensanlagegesetz) (e.g. participations in companies, profit participation rights, participating loans, subordinated loans).

The fee-based financial investment advisor may also broker these products to the client, but must then pass on to the client any allowance (commission) that he receives from the product provider.

Process flow

1. application for permission

You must apply to the competent authority for permission to act as a fee-based financial investment advisor. Depending on the federal state, this is the trade authority or the Chamber of Industry and Commerce.

Individuals (natural persons) apply for the permit themselves or through authorized third parties. In the case of legal entities, the application is submitted by their legal representatives or by third parties authorized in writing.

2. notice of permission

The permit is issued in the form of a permit notice.

3. entry of the permission

After commencing activity as a fee-based financial investment intermediary, you must immediately submit an application for entry in the register pursuant to Section 11a (1) of the Trade, Commerce and Industry Regulation Act (Gewerbeordnung).

Requirements

Permission to act commercially as a fee-based financial investment advisor will be granted if you are

  • are reliable
  • live in orderly financial circumstances,
  • can prove that you have professional liability insurance, and
  • have successfully passed an examination for expert knowledge at a chamber of industry and commerce or can prove this required expert knowledge by an equivalent professional qualification.

Which documents are required?

For the examination for the granting of permission to act as a fee-based financial investment advisor, you must submit the following documents:

  • a certificate of good conduct for submission to an authority
  • an extract from the central business register,
  • if applicable, a certificate in tax matters from the tax office,
  • a certificate of no objection from the municipal tax office, if applicable,
  • an extract from the debtors' register of the central enforcement court,
  • if applicable, the information of the insolvency court on the exemption from insolvency and on the rejection of the opening of proceedings due to lack of assets
  • proof of professional liability insurance,
  • proof of the required expertise and
  • in the case of legal entities and commercial partnerships: the excerpt from the commercial register.

Legal basis

§ Section 34h (1) Trade, Commerce and Industry Regulation Act (GewO)

What else should I know?

1. scope of permission

You can apply for permission to act as a fee-based financial investment advisor for all product categories (open-end funds, closed-end funds, asset investments within the meaning of Section 1 (2) of the Asset Investment Act), but it can also be limited to individual categories.

2 No double permission for financial investment brokers and fee-based financial investment advisors

Permission to act as a financial investment intermediary pursuant to Section 34f of the German Industrial Code and as a fee-based financial investment advisor pursuant to Section 34h of the German Industrial Code are mutually exclusive. Thus, anyone who already has a permit as a financial investment intermediary can only obtain a permit as a fee-based financial investment advisor if they waive their permit as a financial investment intermediary.

Technically approved by

BMWi, VIIB3

Author

List-ID 848 (whitelist; Last updated: 06.02.2020)

The text was automatically translated based on the German content.

Source: Serviceportal Niedersachsen (Linie6PLus)