In general, an administrative act by which the fundamental prohibition of a behavior is lifted in an individual case (an official permission to do something, a formal authorization or exemption). – With regard to the financial market, the following applies to Germany: anyone wishing to provide financial services or conduct banking business on a commercial basis or on a commercial scale of any kind requires written authorization from the supervisory authority, in Germany the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht), in accordance with Section 32 of the German Banking Act (KWG). The authority may withdraw the license if this is necessary for averting a danger (hazard defense) or if warnings issued remain without consequence. Permission is generally understood as a synonym (synomym: a word having the same or nearly the same meaning as another in the language) for permission. – The German Federal Financial Supervisory Authority (BaFin) has published current fact sheets on the individual transactions requiring approval, which provide basic information on the individual facts. These can be accessed via the authority’s homepage. Here you will also find information on the granting of licenses from 2014 by the European banking supervisory authority. – See Banking Directive, Banking License, Operator License, Cross-Border Business, Withdrawal of Permission, Organization Plan. – See BaFin Annual Report 2003, pp. 76 f. (borderline issues in this regard), BaFin Annual Report 2004, p. 116 (withdrawal of permission as “ultima ratio”), BaFin Annual Report 2005, pp. 191 f. (high number of suspicious cases; BaFin can also take action against banks with which the operators of unauthorized transactions maintain accounts), BaFin Annual Report 2007, pp. 207 f. (examination of the obligation to obtain a license), BaFin Annual Report 2010, p. 245 f. (companies can have the obligation to obtain a license determined by BaFin even before commencing business operations; BaFin leaflets), BaFin Annual Report 2012, p. 213 (BaFin issues new fact sheet on financial investment brokerage; secondary market trading platforms for existing limited partnership interests of funds are also subject to licensing), BaFin Annual Report 2013, p. 58 (operators of businesses have the option of having their intended activities reviewed in advance by BaFin with regard to the licensing requirement), and the respective BaFin Annual Report, chapter “Cross-Sectional Tasks.”
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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