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Accueil > Financial Market in the Respective Member States > Statutory Permission for Financial Services and Banking Affairs

Not every capital investment can be sold without permission. The respective legal statutory permissions regarding capital markets are regulated in the German Banking Act (KWG – Kreditwesengesetz). Subject to licensing are among others carrying on banking affairs (for example deposit-, loan-, issue-, financial commission-, guarantee transactions, among others) as well as the so called financial services. This includes the agency and administration as well as the trade in financial instruments. Thus, a financial service provider needs a permission for the aforementioned affairs in financial instruments, which will be granted by the BaFin. According to the EU-Directive (MIFID), consulting in financial instruments will be subject to licensing in the future.

Agency and so forth of asset funds are not subject to licensing. This leads to the absurd legal situation that the agency of a 5-Euro-share is subject to licensing but not the agency of a freehold flat or of a real estate fund share including the relevant (possibly very high) financing (!).

The services in securities, the trade with financial instruments, die financial analysis, among others are regulated in the German Securities Trading Act (WpHG – Wertpapierhandelsgesetz). There you can find rules and regulations regarding correct consulting of clients, misuse of the market, insider trading, adhoc-liability, and the like. The WpHG is not valid for asset funds. In this regard there are no rules and regulations regarding disposition, consulting, liability of information, and the like.

• Financial services
• Banking affairs

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