Safeguard your business idea –
White Paper on BaFin authorisation requirements
Do you have an innovative business idea in the FinTech sector or for an innovative start-up? Perhaps you are in the cryptocurrency or online ordering business or are just launching crowdfunding for your start-up.
Everything seems well thought out, but in the complex world of banking and capital markets law, you inevitably come to face a crucial question: Do I need a licence from BaFin for my business idea or can my business model be implemented without cumbersome approval procedures?
Among others, these business models require a licence from BaFin:
- Banking business: e.g. lending, deposit business, guarantee business
- Investment services: e.g. investment advice, investment brokerage, asset management
- Payment services: e.g. payment processing, money remittance, payment initiation
- Electronic money business: issuance and management of electronic money
- FinTech: e.g. crowdfunding platforms, automated investment advice, operation of a trading platform or a social trading platform
There are often surprises, especially when it comes to payment services. Booking platforms or online delivery services for restaurants can also fall under this category and require a licence from Bafin in order to operate.
A wrong decision or being unaware of existing regulatory restrictions can cost you more than just time – fines, legal disputes or even a ban on your business activities could nip your vision in the bud.
Avoid the shutdown of your company: Understanding BaFin’s authorisation requirements
Imagine this: You are running your company unsuspectingly and suddenly you are hit by a regulatory stop – all your investments, your reputation and your future opportunities fade away. The complexity of banking and capital markets law should not be underestimated, and the line between legal innovations and regulatory offences is often narrower than expected.
The risk of penalties, a loss of reputation or even a ban on doing business without the right licence is very real and can mean the abrupt end of your business activities.
This is because you are not allowed to start a business without a licence from BaFin if it falls under the above categories.
Our White Paper, your guide: from process planning to BaFin authorisation
Our white paper offers you a safe guardrail on your way through the regulatory jungle.
White Paper Part I
To take the first step, you first need an idea of which activities are dangerously close to regulated services. This is described in the first part of our White Paper.
White Paper Part II
In the second part of the White Paper, we explain where and how legal structuring options can be used to avoid an authorisation requirement.
In our detailed White Paper, we shed light on the aspects you need to pay attention to, highlight structuring options and point out when you should definitely consult experts.
You will know exactly when you need to apply for a BaFin licence. Your compliance is ensured and you can concentrate fully on expanding your business model and making it successful, protected from unforeseen regulatory surprises.
We provide support
As a law firm specialising in banking and capital market law, we counsel all types of regulated companies on regulatory matters. A key focus is on legal issues relating to investment services, payment services and e-money transactions, whereby our specialist lawyers for banking and capital markets law have particular expertise in the individual assessment of these services and the representation of client interests vis-à-vis BaFin.
If you have any questions on the subject of BaFin authorisation, please contact Oliver Marc Prager, specialist lawyer for banking and capital market law / M.SC. Economics, and the team at mzs Rechtsanwälte.
The law firm can be contacted by telephone by dialing 0211-69002-0 or by email at info@mzs-recht.de.
Request White Paper on BaFin authorisation requirements
Request the comprehensive White Paper.
In our White Paper, we provide an overview on,
- what to look out for,
- which structuring options you can utilise and
- when you should definitely consult an expert.
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