Our content on cross-border marketing restrictions for Germany has recently been updated - here’s what you need to know if you're marketing or selling financial products or investment services on a cross-border basis:
1. General Licensing Requirements
Unless your firm is a MiFID II investment firm or a CRD credit institution with passported authorisation into Germany - or an exemption applies - a local licence will likely be required
2. Existing Client Exemption
If you're marketing to an existing client, additional transactions within the existing business relationship do not require a licence - provided the relationship was established in compliance with German laws (e.g., the reverse solicitation exemption)
3. Third-Country Regulated Firms Exemption
Third-country firms may apply for a BaFin "exemption order" if they only serve institutional clients. However, BaFin must be satisfied with the regulatory cooperation in place - which isn't always seamless
4. Limited EEA Firm Exemption
A narrow exemption exists for EEA firms offering only custody of securities or lending in Germany - but BaFin approval is still required
5. CRD VI Impact
Changes may be on the horizon! The implementation of CRD VI into German law could impact third-country firms relying on exemptions - stay tuned for updates.
Check out our latest content for the most up-to-date insights!
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