CRR-credit institutions or securities trading firms may conduct banking business or provide financial services in another EEA state via a branch or by providing cross border services without being obliged to apply for a license at the host member state’s competent authority. As a precondition, the company has to be licensed by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin), the license has to cover the planned business in the host member state, the company is efficiently supervised in Germany and undertook the notification procedure at BaFin.
The concept of the EU-Passport is not new as it was already introduced into the German Banking Act (Kreditwesengesetz – KWG) in 1992 based on the 4th KWG-Amendment implementing Directive 89/646/EEC into German law. CRD IV (Directive 2013/36/EC) continues this fundamental concept of freedom of establishment and freedom to provide services. CRD IV appoints the European Banking Authority (EBA) to develop draft regulatory technical standards and draft implementing technical standards in order to detail the information to be given to the competent regulatory authority and to establish standard forms, templates and procedures.
Based on these standards and templates developed by EBA, which were published in the Official Journal already in 2014, BaFin published the forms „EWR-Dienstleister: Formular zur Dienstleistungs-Notifizierung“ (Services Passport Notification Form) and „EWR-Dienstleister: Formular zur Notifizierung einer Zweigstelle“ (Branch Passport Notification Form) on 16 July 2015.
In case a CRR-credit institution or securities trading firm licensed in Germany plans to conduct banking business or to provide financial services in another EEA state via a branch or by providing cross border services, these forms have to be used for the notification procedure according to section 24a KWG in connection with section 12 Regulation Concerning Reports and Submission of Documentation under the Banking Act (Anzeigenverordnung – AnzV).