Typically an administrative offence exists when a necessary reporting pursuant to the Foreign Trade and Payments Regulation (AWV) was conducted incorrectly, incompletely, not at all, or not in time.
According to the changed rules within the Foreign Trade and Payments Act (AWG), the prosecution of that administrative offence will be ceased if it is a negligent breach of law, the breach was revealed by way of self-monitoring and the responsible authority was notified. Moreover, it is necessary that adequate measures are taken to prevent a repeat failure for the same reason. Pursuant to Sect. 22 para. 4 clause 2 Foreign Trade and Payments Act a notification to the responsible authority will only be regarded as voluntary if the respective authority has not started any investigations, yet.
Across industries, recent years have revealed that an efficient allocation of liquidity is essential for businesses’ economic success. By leveraging European Central Bank’s (ECB) standing facilities newly formed banks can professionalize their liquidity management, too. But, in order to utilize these facilities specific requirements have to be met.
To guarantee a successful liquidity management adequate measures have to be taken to cope with excess liquidity and liquidity demand. ECB’s standing facilities are one possible instrument to manage short-term and flexible liquidity mitigation measures. Besides marginal lending facilities standing facilities provide deposit facilities. The marginal lending facilities provide short-term “overnight”-lending to banks whereas deposit facilities offer a risk-free deposit account for excess liquidity.
Funding required for running the business
As already posted on June 2012 (see below), from July 2013 on all collective investment schemes, which are not already covered by the UCITS Directive [Directive for the regulation of collective investment undertakings; Directive 2009/65/EC] are regulated by the AIFMD. Therefore fund managers of so-called “alternative” funds, such as private equity funds or hedge funds generally are required to obtain a license for their activities.
There are numerous requirements that have to be met in order to obtain an AIFM-license by the Federal Financial Supervisory Authority (BaFin). One of these conditions is the availability of adequate capital.
-Professionalization of Financial Services-
In order to offer financial services today, companies usually require a banking license and are therefore subject to the supervision of the BaFin. However, there are financial services which can be exempted from the supervision and are therefore not bound to license requirements. These businesses named “Financing Without a Bank” are often ancillary or secondary businesses, which can be offered as a complement to the core business. A possible release of the license requirements depends on the business volume of the respective company.
The third edition of this practical guide on establishing a bank in Germany has been edited by Jens Rönnberg (PwC) and Dr Oliver Wagner (Association of Foreign Banks in Germany).
The authors Christian Wilhelm Baumann, Sascha Demgensky, Dr Nicole Elert, Markus Erb, Christina Grulke, Eva Handrick, Holger Junghanns, Dr Eric Krause, Marco Libudda, Hartmut Liehr, Jens Marth, Dr Angelika Meyding-Metzger, Thomas Karl Otto, Martina Rangol, Kristina Rölver, Jens Rönnberg, Alice Dagmar Romisch, Dr Martin Schulte, Dr Jörg Schwerdtfeger, Marc Seedorf, Hiltrud Thelen-Pischke, Wolfgang Vahldiek, Dr Oliver Wagner, Christian Wettlaufer, Christine Wicker, Daniel Wildhirt, Rainer Wilken, Maxi Wilkowski and Herbert Zerwas have revised and expanded this edition.
I am proud to announce that the latest, the 3rd, edition of "Banking Business in Germany" is now available. Also the new edition was developed in close cooperation between the Association of Foreign Banks in Germany (Verband der Auslandsbanken in Deutschland e.V.) and PwC and, like the former editions, is endorsed by the State-Government of Hesse.
The book's subtitle tries to explain its ambition in one short sentence:
"A practical guide for foreign banks establishing a subsidiary or a branch in Germany"
An increasing number of companies will be obliged to submit emission allowances in the future. More companies will participate in trading for the purpose of covering and securing their need for emission allowances. However, certain arrangements of such transactions can trigger a license requirement of the involved entity. Under certain circumstances, the application for a banking license for trading in emission allowances may be required.
The German Supervisory Authority has clarified the scope of the license requirements in a recent guidance notice. By doing so, it aligned its orientation in this matter with the given legal status in Europe.
As time goes by …
Time is relative. But from a regulatory perspective the last four years since 2007 brought close to epochal changes. In nearly all areas of the financial industry the measures taken to scope with the financial crisis led to fundamental amendments and new regulations which already transformed the industry sustainably and will further do so in future.
What you can look forward to