Establishment of a branch by domestic securities institutions

(1) A securities institution that intends, in another state party, 1. to establish a branch; or 2. without establishing a branch there, to engage tied agents having their seat or habitual residence in that state party, must notify this to the Bundesanstalt and the Deutsche Bundesbank without delay. The notification obligation under the first sentence also applies to a securities institution that established its branch in another state party before the time it became subject to the notification obligation under subsection (1).
(2) The notification must contain: 1. the state party in which the branch is to be established, or in which tied agents resident there are to be engaged without the establishment of a branch; 2. a business plan showing the nature of the intended business, the organisational structure of the branch, and an intention to engage tied agents, together with the names of the tied agents; 3. insofar as tied agents are to be engaged in another state party without the establishment of a branch, a description of the intended deployment of the tied agents and of the organisational structure, including reporting lines, showing how the tied agents are integrated into the corporate structure of the securities institution, together with the names of the tied agents; 4. the address at which documents of the securities institution can be requested and at which service can be effected in the host state party; and 5. the names of the managers of the branch.
(3) Ancillary investment services may be notified only in connection with at least one investment service. More detailed provisions arise from Commission Delegated Regulation (EU) 2017/1018 of 29 June 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards specifying information to be notified by investment firms, market operators and credit institutions (OJ L 155, 17.6.2017, p. 1; L 210, 15.8.2017, p. 17; L 292, 10.11.2017, p. 119) and Commission Implementing Regulation (EU) 2017/2382 of 14 December 2017 laying down implementing technical standards with regard to standard forms, templates and procedures for the transmission of information in accordance with Directive 2014/65/EU of the European Parliament and of the Council (OJ L 340, 20.12.2017, p. 6; L 33, 7.2.2018, p. 5).
(4) Where the Bundesanstalt has no indications giving rise to doubt as to the appropriateness of the organisational structure and the financial position of the securities institution, it transmits the particulars under subsections (1) and (2) to the competent authority of the host state party within three months of receipt of the complete documents. The Bundesanstalt notifies this to the notifying securities institution. It also informs the competent authority of the host state party of the compensation scheme to which the securities institution belongs. Where the Bundesanstalt does not forward the particulars under subsections (1) and (2) to the competent authority of the host state party, the Bundesanstalt informs the securities institution of the reasons within three months of receipt of all particulars under subsections (1) and (2). After the notification has been forwarded to the competent bodies of the host state party, the securities institution may, following a corresponding communication from those bodies, or at the latest after expiry of a two-month period, commence its activity in the other state.