Transitional provisions on the Sixth Act Amending the Banking Act

(1) For a credit institution that holds authorisation as a deposit-taking credit institution on 1 January 1998, authorisation to conduct the principal broking business, the underwriting business, the card-based e-money business, the network-based e-money business, and to provide financial services, is deemed to have been granted as at that date.
(2) Financial services institutions and securities trading banks that were lawfully active on 1 January 1998 without holding an authorisation from the Federal Institute must, by 1 April 1998, notify the Federal Institute and the Deutsche Bundesbank of their activities requiring authorisation under this Act and of their intention to continue them. Where the notification has been made within the time limit, authorisation under section 32 is deemed to have been granted to that extent. The Federal Institute confirms the designated subject matter of the authorisation within three months of receiving the notification. Within three months of receiving the Federal Institute's confirmation, the institution must submit to the Federal Institute and the Deutsche Bundesbank a supplementary notification that meets the content requirements of section 32. Where the supplementary notification is not submitted within the time limit, the Federal Institute may revoke the authorisation under the second sentence; section 35 remains unaffected.
(3) For institutions for which an authorisation under subsection (2) is deemed to have been granted, section 35(2), point 3, in conjunction with section 33(1), first sentence, point 1, letters a to c, and section 24(1), point 9, on initial capital, apply only from 1 January 2003. For as long as the initial capital of the institutions named in the first sentence is lower than the amount required when applying section 33(1), first sentence, point 1, it may not fall below the average value of the six preceding months in each case; the average value must be calculated every six months and communicated to the Federal Institute. Where the average value named in the second sentence is not reached, the Federal Institute may revoke the authorisation. For the institutions named in the first sentence, section 10(1) to (8) and sections 10a, 11, and 13 to 13b apply only from 1 January 1999, unless they establish a branch or provide cross-border services in other states of the European Economic Area under section 24a. Investment firms for which an authorisation under subsection (2) is deemed to have been granted, and which do not apply section 10(1) to (8) and sections 10a, 11, and 13 to 13b, must inform their customers that they cannot establish a branch or provide cross-border services in other states of the European Economic Area under section 24a. Institutions for which an authorisation under subsection (2) is deemed to have been granted must notify the Federal Institute and the Deutsche Bundesbank of whether they apply section 10(1) to (8) and sections 10a, 11, and 13 to 13b.
(4) (repealed)
(5) (repealed)