Establishment of a branch and provision of cross-border services in other states of the European Economic Area

(1) A CRR credit institution must notify the Federal Institute and the Deutsche Bundesbank without delay, in accordance with the second sentence, of the intention to, in another state of the European Economic Area, 1. establish a branch, or 2. without establishing a branch there, engage tied agents having their registered office or habitual residence in that state of the European Economic Area. The notification must contain 1. the member state in which the branch is to be established or in which tied agents resident there are to be engaged without establishing a branch, 2. a business plan showing the type of business planned, the organisational structure of the branch, and any intention to engage tied agents, together with the names of the tied agents, 2a. insofar as tied agents are to be engaged in another state of the European Economic Area without establishing a branch, a description of the intended use of the tied agents and of the organisational structure, including reporting lines, showing how the tied agents are integrated into the institution's corporate structure, together with the names of the tied agents, 3. the address at which documents of the institution may be requested, and at which documents may be served, in the host member state, and 4. the managers of the branch. Where the European Central Bank is the supervisory authority, the Federal Institute forwards the notification to it.
(2) Where there is no reason to doubt the adequacy of the institution's organisational structure and financial position, the supervisory authority transmits the particulars under subsection (1), second sentence, to the competent bodies of the host member state within three months of receipt of the complete documents, and informs the notifying institution accordingly. It also informs the competent bodies of the host member state of the amount of own funds and the adequacy of the own funds position, and, where applicable, of the deposit guarantee scheme or investor compensation scheme to which the institution belongs, or of the equivalent protection within the meaning of section 23a(1), first sentence. Where the supervisory authority does not forward the particulars under subsection (1), second sentence, to the competent bodies of the host member state, it informs the institution of the reasons within three months of receipt of all the particulars under subsection (1), second sentence. After the notification has been forwarded to the competent bodies of the host member state, the institution may take up its activity in the other state after a corresponding communication from those bodies, or, at the latest, after a period of two months has elapsed.
(3) Subsection (1), first sentence, applies correspondingly to the intention to conduct banking business, provide financial services within the meaning of section 1(1a), second sentence, points 1, 1a, 1c, 2 to 4, 9, and 10, or third sentence, or carry on activities under section 1(3), first sentence, points 2 to 8, offer trade credit information services or the letting of safe-deposit boxes, or, in the case of CRR credit institutions, provide payment services within the meaning of the Payment Services Supervision Act, in another state of the European Economic Area by way of the cross-border provision of services. The notification must contain: 1. the state in which the cross-border service is to be provided, 2. a business plan stating the activities intended, and 3. whether tied agents having their registered office or habitual residence in Germany are to be engaged in that state, together with their names. Where there is no reason to doubt the adequacy of the institution's organisational structure and financial position, the supervisory authority informs the competent bodies of the host member state within one month of receipt of the notification. The institution must await the communication of the competent bodies of the host member state within this period before taking up its activity in the other state. Otherwise the supervisory authority informs the institution without delay of the failure to inform those bodies, and the reasons for it.
(3a) Where the operator of a multilateral or organised trading facility intends to grant trading participants in other states direct access to its trading system and to enable them to trade on its markets, it must notify this to the Federal Institute, insofar as this is the first grant of access to a trading participant in the state concerned. The Federal Institute informs the competent bodies of the host member state of this intention within one month of receipt of the notification. The operator must, on request, provide the Federal Institute with the names of the admitted trading participants from that state. On the request of the competent bodies in the host member state, the Federal Institute communicates this information within a reasonable period.
(3b) (repealed)
(3c) For a financial services institution that conducts factoring within the meaning of section 1(1a), second sentence, point 9, or finance leasing within the meaning of section 1(1a), second sentence, point 10, and that intends to establish a branch in another state of the European Economic Area for that activity, or to conduct that activity in another state of the European Economic Area by way of the cross-border provision of services, subsections (1) to (3) apply correspondingly, provided that the conditions of section 53b(7), first sentence, points 1 to 7, are met. Subsection (2), second sentence, applies on the basis that the competent body of the host member state must be informed of the amount and composition of the financial services institution's own funds and of the total risk exposure amounts of its parent credit institution calculated under Article 92(3) and (4) of Regulation (EU) No 575/2013.
(4) Where the circumstances notified under subsection (1), second sentence, subsection (3), second sentence, or subsection (3c), first sentence, change, the institution must notify these changes to the Federal Institute, the Deutsche Bundesbank, and, where it is a CRR credit institution, also to the competent bodies of the host member state, at least one month before the changes take effect. Where the European Central Bank is the supervisory authority, the Federal Institute forwards the notification to it. The supervisory authority makes a decision under subsection (2) and subsection (3), third sentence, and the competent bodies of the host member state may make a decision on any conditions that may be required. The notification duty under the first sentence applies correspondingly to an institution that has already established its branch in another state of the European Economic Area before the point at which it becomes subject to the notification duty under subsection (1). An institution that has established a branch under subsection (1) must notify changes in the circumstances of the deposit guarantee scheme or investor compensation scheme, or of the equivalent protection within the meaning of section 23a(1), first sentence, to the Federal Institute, the Deutsche Bundesbank, and, where it is a CRR credit institution, also to the competent bodies of the host member state, at least one month before the changes take effect. Where the European Central Bank is the supervisory authority, the Federal Institute forwards the notification to it. The supervisory authority communicates the changes under the fifth sentence to the competent bodies of the host member state.
(4a) (repealed)
(5) The Federal Ministry of Finance is empowered to determine, by statutory instrument, the extent to which subsections (1), (2), and (4) apply correspondingly to the engagement of a tied agent having its registered office or habitual residence in another member state of the European Economic Area, and that subsections (2) and (4) apply correspondingly to the establishment of a branch in a third country, insofar as this is necessary in the field of the law of establishment on account of agreements between the European Union and third countries.
(6) (repealed)