Financial regulation

The incorporation of financial banking institutions is subject to authorization by the Central Bank (BNA).

In general, in order to obtain authorization from the regulator, financial banking institutions based in Angola must:

• have as their exclusive object the exercise of the activity legally permitted, under the terms of Article 6 of this Basic Law of Financial Institutions;
• adopt the form of a public limited company;
• have share capital not less than the legal minimum;
• have share capital represented by registered shares;
• have sound corporate governance arrangements, including a clear organizational structure with well-defined, transparent and consistent lines of responsibility;
• have effective processes to identify, manage, control and communicate the risks to which is or might be exposed;
• have appropriate internal control mechanisms, including robust administrative and accounting procedures; and
• have remuneration policies and practices that promote and are consistent with sound and prudent risk management.

Australian Financial Services (AFS)

If an entity wishes to carry on a financial services business, it will have to apply to the ASIC for an AFS license or have the benefit of an exemption. Financial services include advice and dealing in respect of financial products such as investment products, non-cash payment facilities and arrangements for the management of financial risk.

To apply for a license, the entity is required to lodge an application form and a suite of proof documents (i.e. business descriptions, organizational structures, people proofs and financial statements). In some cases, ASIC may require additional information, and request the entity lodge further proof documents or answer specific questions in relation to the documents submitted with ASIC.

When evaluating an application for an AFS License, ASIC will assess if the entity:

• is competent to carry on the type of financial services indicated in the application;
• has sufficient resources to carry on the business; and
• can meet the obligations of an AFS licensee (i.e. training, compliance, insurance and dispute resolution).

The application fee depends on the type of application application and, as at December 2019, ranges from AUD899 (i.e. paper lodgement for a request to cancel a body corporate AFS license), AUD3,721 (i.e. online application for a body corporate AFS license for retail clients and low complexity products) to AUD11,305 (i.e. paper lodgement for a body corporate AFS license for retail clients and high complexity products).

The application process takes around five to eight months in total, depending on the type of application lodged.

Firms which hold AFS Licenses are listed on the ASIC register.

Australian Prudential and Regulation Authority 

If an entity wishes to carry on a banking business in Australia it is required to be authorized by APRA as an 'authorized deposit-taking institution' (ADI) or have the benefit of an exemption.

To apply for authorization, the applicant must:

• engage in a preliminary consultation with APRA to discuss the applicant's intention to engage in banking business in Australia;
• lodge an application and required documentation with APRA; and
• arrange meeting(s) with APRA to complete an onsite review.

The application fee depends on the type of application and ranges from AUD30,000 to AUD80,000.

The time required to process an application is dependent on the nature of the application and the supporting documents required to be provided to APRA. APRA states that generally the overall licensing process could take from three to twelve months.

Institutions classified as ADIs are listed on the APRA website.

Engagement with APRA prior to an application being made is recommended.

Credit

Credit providers and intermediaries require an Australian Credit License to provide credit or financial broking services (unless they are exempt). The credit licensing system is based on the AFS licensing concepts and requirements as ASIC is now the national regulator for consumer credit and finance broking.

To apply for a license, the entity will be required to lodge an application, answer questions in relation to proposed credit activities, provide supporting documents regarding employees and operations and provide a declaration the entity will comply with set obligations if granted a credit license.

To be granted a credit license, you will need to be able to comply with the general conduct obligations under the National Consumer Credit Protection Act 2009 (Cth), and be a 'fit and proper' person to engage in credit activities.

The application fee is determined by reference to a calculation method prescribed in the relevant regulatory guide and information sheets published by ASIC, and the relevant tiered scale. Depending on the calculation and scale, the application fee can range AUD450 to AUD26,250.

ASIC aims to decide whether to grant a credit licence within 60 days. However, the the time required to process an application is dependent on the nature of the application, and the supporting documents required to be provided to ASIC.

Australian Transaction Reports and Analysis Centre 

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) imposes legal obligations on certain financial services providers, including the obligation to register with the Austrac if providing designated services, such as deposit-taking, currency exchange, loan, life insurance, securities and derivatives market services.

To register an entity with Austrac, the entity must complete and lodge an Austrac business profile form.

A financial institution is required to obtain an authorization before commencing any regulated activities, unless certain exclusions or exemptions apply. Depending on the type of firm, a firm must apply to the National Bank of Belgium (Banque Nationale de Belgique/Nationale Bank van Belgie), European Central Bank or the Financial Services and Markets Authority (Autorité des services et marchés financier/Autoriteit voor Financiële Diensten en Markten) for authorization.

• Credit institutions/stockbroking firms: NBB
• Insurance and reinsurance undertakings: NBB
• Payment institutions and electronic money institutions: NBB
• Settlement and clearing institutions: NBB
• Consumer/mortgage credit’ lenders: FSMA
• Portfolio management and investment advice companies: FSMA
• Intermediaries in banking and investment services: FSMA
• Platform of crowdfunding: FSMA
• Management companies of UCIT/AIF/ FSMA
• Independent financial planner: FSMA

The authorization requirements and process depend on the institution concerned.

The competent authority must assess whether the application meets the required threshold conditions. Generally, in order to obtain an authorization, the institution needs to submit an application file which includes among other information:

• a program of operations;
• a business plan including a forecast budget calculation which demonstrates that the applicant is able to employ the appropriate and proportionate systems, resources and procedures to operate soundly;
• a description of the applicant's governance arrangements and internal control mechanisms;
• a description of the applicant's structural organization;
• the identity of persons holding in the applicant, directly or indirectly, qualifying holdings;
• the applicant's legal status and articles of association; and
• the address of the applicant's head office.

The applicant can only obtain a license if it is financially sound and meets the minimum initial capital and own funds requirements. These requirements are set out in the legislations outlined above.

The Central Bank’s approval process

The incorporation of a financial institution in Brazil requires the prior approval of the Central Bank.

On 2 August 2012, the National Monetary Council (CMN) enacted Resolution No. 4.122, which regulates, amongst other things, the requirements and procedures for the authorization for organization and operation of financial institutions and other types of financial institutions.

In general terms, the incorporation process must begin with a written request to be filed with the Central Bank containing a number of required documents. After the documentation mentioned is received by the Central Bank, it will summon the future controlling persons of the financial institution for a technical interview so that they can present their proposal. According to Resolution 4.122, the Central Bank may, at its sole discretion and on a case-by-case basis, waive the need for a technical interview, if it believes that the venture proposal is sufficiently explained in the executive summary and that the future controlling persons have demonstrated sufficient knowledge on the business field and in the sector that the financial institution intends to operate.

If the Central Bank does approve the transaction, the applicant will have to comply with several requirements imposed by Resolution No. 4,122 within a certain period of time. Once the Bank of Brazil considers that all the requirements have been properly met, it will be in position to grant the necessary approval for the financial institution to operate in Brazil. The entire process may take from eight months to one year (or more) to be completed.

The regulator will also approve key individuals (eg senior management) in their roles.

Foreign banks

The Brazilian Constitution prohibits foreign financial institutions from establishing new branches or subsidiaries in Brazil, except when duly authorized by the Brazilian government (by means of a presidential decree). A foreign financial institution duly authorized to operate in Brazil through a branch or a subsidiary is subject to the same rules, regulations and requirements that are applicable to any Brazilian financial institution.

Foreign investment in Brazilian financial institutions

Notwithstanding the above, foreign investors may acquire publicly traded non-voting shares of Brazilian financial institutions negotiated on a stock exchange, or depositary receipts offered abroad representing non-voting shares without specific authorization. However, the acquisition by a foreign investor of voting shares of Brazilian financial institutions requires the authorization by the Brazilian government (by means of a presidential decree). In addition to that, the acquisition of a material interest or control of a financial institution (either by a foreign or local investor) requires the prior approval of the Central Bank.

Nevertheless, on September 26, 2019, the Presidency of the Republic issued Decree 10,029, empowering the Central Bank to authorize, among others, the increase of foreign equity interest into financial institutions authorized to operate in Brazil. In other words, a presidential decree authorizing investment in financial institutions is no longer necessary considering that the Central Bank has powers to recognize as of interest of the Brazilian government an increase in the percentage of equity in the capital of financial institutions headquartered in Brazil, held by individuals or legal entities resident or domiciled abroad.

Provincial (Québec)

Subject to certain exemptions, any firm/person wishing to act as a dealer, advisor or investment fund in Québec must register with the Autorité des marchés financiers.

In that regard, the Autorité des marchés financiers maintains the Register of firms and individuals authorized to practise.

Certain fees may apply and are payable to the Autorité des marchés financiers depending on the type of services and products, or on the type of registration.

Banks

The legal entity shall be constituted as a stock corporation and shall comply with its requirements by submitting a prospect before the CMF according to the regulation, particularly the General Banking Act, and complying with the rules about minimum amount of capital, number of shares and number of directors, among others. The CMF must authorize by resolution the existence and functioning of the corporation. The CMF shall authorize the establishment of a foreign bank's representative office in Chile, in order to act as agents of the main offices.

Securities

The public offering of securities and shares of publicly traded corporations require that both the issuer and the securities have been previously registered in the Securities Registry of the CMF.

The intermediaries of securities that operate in the Stock Exchange has to be registered in the Stock Brokerage Registry and Securities Agents that is held by the CMF once they meet the requisites of suitability established in the Securities Act.

Funds

In order to manage a fund (mutual or investment fund) you should be incorporated as a corporation whose exclusive purpose must be managing third party funds. An authorization from the CMF shall be obtained and minimum amount of capital must be maintained.

Depending on the type of entity, an entity must apply to the Superintendency of Finance for authorization.

The Superintendency of Finance must assess whether the application meets the minimum capital requirements and the other required conditions set forth by the applicable law, within six months of the submission of the complete application.

The Superintendency of Finance will also approve agents and professional individuals of the stock exchange market in their roles.

Authorized entities and individuals are listed on the National Registry for Securities and Issuers (Registro Nacional de Valores y Emisores), National Registry for Agents of the Stock Exchange Market (Registro Nacional de Agentes del Mercado de Valores) and on the National Registry for Professionals of the Stock Exchange Market (Registro Nacional de Profesionales del Mercado de Valores).

A company asking for authorization must apply to the Czech National Bank (CNB).

CNB must assess whether the application meets the required threshold conditions within six months of submission of the complete application.

The application fee depends on the type of application and ranges from CZK 5,000 to CZK 200,000.

The regulator will also approve key individuals (senior management) in their roles.

Regulated subjects are listed on the 'lists of regulated institutions and registered financial market entities', maintained by the CNB.

Depending on the type of firm, a firm must apply to the Finnish Financial Supervisory Authority (FIN-FSA), Ministry of Finance, Ministry of Social Affairs and Health or the Finnish government for authorization. The FIN-FSA grants authorizations for credit institutions, Finnish life, non-life and reinsurance companies, investment firms, fund management companies and custodians.

The application forms, instructions and list of required appendixes are available at the FIN-FSA web page in Finnish and Swedish. The FIN-FSA shall assess whether the application meets the required threshold conditions within three to twelve months of the submission of the complete application.

Authorization is granted only when the entity seeking authorization meets the necessary regulatory requirements. The key pre-condition is that the entity is managed in a professional manner and in line with sound and prudent business principles. The entity must have sound internal governance and adequate financial resources. The entity’s headquarters must be located in Finland.

The FIN-FSA authorizations fee depends on the type of the application ranging from €3,700 to €14,300.

Virtual currency providers must be registered in the register of virtual currency providers maintained by the Financial Supervisory Authority (FIN-FSA). A foreign service provider may conduct its activities in Finland either by establishing a branch or by providing its services across the border. Commencement of activities is contingent on the authorization or notification procedure by the FIN-FSA.

Supervised firms and registered insurance intermediaries as well as service providers that have submitted a notification are listed on the FIN-FSA's list. This information is public and may be accessed from the website of the FIN-FSA.

Depending on the type of regulated entity (credit institution, investment firm, alternative investment fund manager (AIFM), an entity must apply to the Prudential and Resolution Supervisory Authority (Autorité de contrôle prudentiel et de résolution) (ACPR) or the Financial Markets Authority (Autorité des Marchés Financiers) (AMF) for authorization.

The regulators assess whether the application meets the required conditions such as:

• suitability of the legal form for the proposed activity;
• minimum capital requirements;
• program of operations, technical and financial resources, organization;
• identity and status of capital contributors, and where applicable, of their guarantors, and the size of their holding;
• location of the central administration and registered office;
• the activity must be effectively run by at least two people, whose knowledge, experience and fitness must be demonstrated, both individually and collectively, as well as their availability; and
• members of the governing body, persons who are in charge of effective management and persons responsible for governance procedures must meet, without purporting to be exhaustive, availability, worthiness, knowledge, skills and experience requirements, assessed both individually and collectively.

A firm must apply for authorization to the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – (BaFin)). The BaFin will assess whether a firm meets the requirements set out in the German Banking Act (Kreditwesengesetz – KWG) including, for example capital requirements and organizational requirements.

The BaFin must assess the application within a period of six months from the submission of the complete application for authorization.

Depending on the type of activity to be conducted, an application must be made to the Bank of Ghana, Securities and Exchange Commission, National Pensions Regulatory Authority or National Insurance Commission for a license. 

Bank of Ghana 

The Bank of Ghana is responsible for: 

• issuing licenses to banks and specialized deposit-taking institutions;
• approving the establishment of representative offices by foreign banks; and
• registration of financial holding companies. 

The application for a license to carry on a deposit-taking business must be in writing accompanied by the required information and processing fee.  The application must show that the applicant meets the threshold conditions for eligibility. 

The Bank of Ghana must inform the applicant of its decision within six months of the submission of the application. If it requires further information or investigation, it must inform the applicant and make its decision within a reasonable additional time period.   

Securities and Exchange Commission 

An application must be made in a prescribed form. There is a prescribed fee payable which ranges from GHS400 to GHS1,000 depending on the type of license applied for, as well as an annual renewal fee ranging from GHS200 to GHS500. There is a minimum capital requirement to be met for a license may be granted. 

National Insurance Commission 

Only a limited liability company may apply for a license. The application for the license must be made in the prescribed form accompanied by the required information and fee. 

National Pensions Regulatory Authority 

An application may be made in the prescribed form accompanied by the required information and fee. 

Trustees 

Both individuals and trust companies may apply for a license to serve as trustees for occupational pension schemes, provident fund schemes, personal pension schemes and other privately managed pension schemes. They must meet the eligibility requirements set out in the National Pensions Act, 2008 (Act 766).   

Pension fund managers 

Only a body corporate licensed by the Security and Exchange Commission as an investment advisor may apply to be registered as a pension fund manager. 

Pension fund custodians 

Only a bank, an insurance company or a non-bank financial institution or wholly owned subsidiary of any of these institutions licensed by the Securities and Exchange Commission as a custodian may apply to be registered as a pension fund custodian.

All financial institutions/investors must apply to the National Bank of Hungary for authorization.

According to the general rule, the regulators must assess whether the application meets the required threshold conditions within three months of the submission of the completed application, however, in certain circumstances the three-month period might be extended on one occasion by up to a further three months

The regulator will also approve key individuals (eg senior management) in their roles.

Authorized firms and individuals are listed on the Registry of the National Bank of Hungary.

Depending on the nature of its activities or the relevant sector within which it intends to operate, a firm may need to apply to the Central Bank of Ireland for authorization before commencing activities. The form and content of the application will vary depending upon the nature of the authorization being sought; however, it will usually involve the submission of an application form, along with supporting documentation, to the Central Bank of Ireland.

Upon receipt of the required documentation, the Central Bank of Ireland will complete an assessment of the application and may issue detailed comments and/or seek additional information, in which case the applicant will be provided with the opportunity to address the comments and requests issued by the Central Bank of Ireland in a revised application submission(s). The Central Bank of Ireland will then notify the applicant of its decision in respect of the application submission.

The time taken to assess the applicant’s submission depends on the nature of the application and/or authorization sought.

There are no fees for applications; however, the Central Bank of Ireland imposes levies after authorization.

Authorized firms are listed on the CBI Register.

The Central Bank of Ireland will also approve key individuals (e.g. senior management in their roles).

The authorization requirements and processes applicable in Italy depend on the type of intermediary which is involved (i.e. mainly a bank, an institution, an asset management company or a financial intermediary).

Generally speaking, in order to be entitled to perform banking or financial activities in Italy, each type of intermediary shall submit to the Bank of Italy a set of documents describing, inter alia, the activity to be performed and confirming compliance with each of the requisite legal requirements in order to perform such activities. The main documents to be prepared are an organizational structure report aimed at describing the internal organization and main procedures that the applicant is setting up in view of the authorization, and a business plan. The applicant institution shall also be able to demonstrate the possession of the relevant minimum own capital requirements, which differ depending on the type of intermediary.

The application includes, inter alia, documents confirming compliance with certain integrity, professionalism and independency requirements by the stakeholders and their senior management.

In this context, the supervisory authorities shall assess within a certain timeframe whether the applicant meets the required conditions. This term may be suspended if the authority requires clarifications. With respect to some significant banks the authorisation is formally granted by the ECB on the basis of the assessment made by the Bank of Italy.

At the end of the authorization processes, if successful, the banks/financial intermediaries/other supervised companies or institutions are enrolled in the relevant sections of the Bank of Italy Registers.

In relation to the fees associated with the incorporation and authorization of banks and financial intermediaries, there are no fees for the enrolment on any register of the Bank of Italy, however, certain fees are requested by CONSOB (by way of supervisory contribution).

The main authorization requirements are the granting of an approval and/or a visa depending on the type of entity or individual. Under the General rules of the CREPMF, some investment activities require an approval (agrément) from the CREPMF and others require authorization(s) from both the CREPMF and BCEAO (Regulation 09/2010).

In accordance with the applicable, the conduct of the following activities on the regional financial market, without this list being exhaustive, is subject to the approval or authorization of the Regional Council: securities trading, maintaining securities accounts, reception and transmission of orders, presentation of daily buy and sell offers, asset management mandates, financial marketing or solicitation, collective asset management, debt securitization (titrisation des créances), financial rating, financial transaction guarantee (garantie des opérations financières),

Once applications are received, they are assessed within a one- to three-month period from the date of filing of the application.

The application fee depends on the type of entity and the nature of the activity ranging from XOF500,000 to XO50 million.

The application process will end up with an individual decision by the Regional Council (CREPMF).

A list of authorized entities and individuals can be found with the CREPMF and the Regional Stock Exchange (BRVM).

Any firm engaged in financial instruments business or the provision of financial instruments intermediary services must register with the Prime Minister.

The activities of a firm engaged in financial instruments business includes the sale and purchase of securities, derivatives transactions, public offerings and private placements. A firm providing financial instruments services typically conducts intermediary services in connection with the sale and purchase of securities, public offerings or private placements.

A registration tax is payable upon submission of an application for registration. The fee is ¥150,000 for registration of a financial instruments business and ¥90,000 for registration of a financial instruments intermediary service.

When an application for registration is filed, the regulatory authority records certain mandatory information in a central registry.

Depending on the type of vehicle, it must apply to the Commission de Surveillance du Secteur Financier for authorization.

The following vehicles must apply for an authorization:

• Banks,
• Payment institutions and electronic money institutions,
• Professionals of the financial sector ("PFS") being either investment firms, specialised PFS or support PFS,
• Investment vehicles and managers governed by the laws, regulations and circulars referred to in the "Law and regulation" section.

The regulator must assess whether the vehicle meets the requirements set out under Luxembourg law to approve the relevant application. According to the Law of 5 April 1993 on the financial sector, as amended from time to time, the Commission de Surveillance du Secteur Financier  has to respond to an application within six months of receipt of the application or, if the application is incomplete, within six months of receipt of the informed needed. Absent this decision during this time frame,  it is deemed equivalent to a notification of refusal. However, the Commission de Surveillance du Secteur Financier  is usually responsive.

As mentioned above, credit institutions and must be authorized to exercise their financial activities.

Credit institutions

Banks located in Luxembourg must hold a bank license granted by the Minister of Finance.

Credit institutions from the European Economic Area ("EEA") benefit from the passport for banking services and the freedom to provide banking services in Luxembourg.

Non-EEA credit institutions coming occasionally and temporarily to Luxembourg to provide services must hold an authorization granted by the Minister of Finance.

Application forms dealing with the following criteria shall be completed and sent to the Commission de Surveillance du Secteur Financier and shall include, inter alia, legal form, capital base, central administration and infrastructure, managing body, shareholders, professional standing, knowledge, competences and experience, governance and remuneration policy, external auditing and deposit guarantee and investor compensation.

Professionnels du secteur financier (PFS)

PFS include investment firms referred to in Part I, Chapter 2, Section 2, Subsection 1 of the Law of 5 April 1993 on the financial sector, as amended from time to time (1993 Law).

Specialized PFS are referred to either in Part I, Chapter 2, Section 2, Subsection 2 or in Article 13 of the 1993 Law and which do not belong to the categories of the first and third indent of such definition.

Support PFS are referred to in Part I, Chapter 2, Section 2, Subsection of the 1993 Law.

Application forms dealing with the following criteria should be completed and sent to the Commission de Surveillance du Secteur Financier and should include, inter alia:

• legal form;
• capital base;
• central administration and infrastructure;
• shareholders;
• professional standing and experience;
• external audit; and
• participation in an authorized investor compensation scheme (only for investment firms). 

Procedure

Authorizations are subject to prior examination by the Commission de Surveillance du Secteur Financier and final granting by the Minister of Finance.

Fees to be paid to the Commission de Surveillance du Secteur Financier depends on the entity, its form and business. The Commission de Surveillance du Secteur Financier charges an annual fee as well as a fee for the examination.

Supervised entities are listed on the webpage of the Commission de Surveillance du Secteur Financier.

Depending on the type of activity to be carried out, applications are made with the Financial Services Commission or the Bank of Mauritius for authorization. 

The regulators will assess whether the application meets the applicable criteria and then accept or refuse such application accordingly. 

The application fee depends on the type of application, ranging from USD1,000 to USD9,500.

Most financial entities require authorization for incorporation from CNBV (in some cases with an opinion from BANXICO confirming such entity's suitability for authorization).

The authorization process includes identifying equity holders, board members and main officers, presenting a business plan and a draft copy of by-laws, describing the proposed capital structure, describing technological infrastructure and identifying the origin of resources used as capital contributions. In most cases the regulator will have three to six months from receipt of a completed application to grant or deny authorization.

Most institutions are required to make a security deposit in favor of the Federal Treasury, representing a percentage of the corresponding institution’s minimum capital requirement.

Most authorized financial institutions are listed in the Supervised Entities Registry (Padrón de Entidades Supervisadas).

The exercise of banking activity is subject to obtaining an authorization issued by the Wali (Governor) of Bank-Al Maghrib after consulting the Credit Institutions Committee.

Banking activities in Morocco must be carried out in accordance with the legal requirements relating to legal form, share capital or assets and liabilities.

The regulators assess whether the application meets the required conditions such as:

• the nature of the approval requested;
• the capital providers, the home group and the shareholders of the institution seeking approval;
• the legal documentation and governance of the said institution;
• the presentation of the project, its objectives, its implementation schedule, the related business plan and the human, technical and financial resources necessary for its implementation;
• internal control, risk management, anti-money laundering and anti-terrorist financing and personal data protection systems;
• the approval file of the auditors whose appointment is being considered;
• in the event of affiliation with a financial institution, the supervision exercised by the said institution and the prudential supervision to which it is subject;
• the opinion of the home country supervisory authority where the applicant institution is a foreign financial institution.

Depending on the nature of a firm and the activities it intends to engage in, authorizations may be required from one or more of the European Central Bank, Dutch Central Bank (de Nederlandsche Bank) and/ or the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten) for authorization.

• The European Central Bank issues banking (ie credit institution) licenses. The license application must be submitted to the Dutch Central Bank (de Nederlandsche Bank), which will then process the application in close cooperation with the European Central Bank.
• The Dutch Central Bank (de Nederlandsche Bank) issues authorizations to financial entities, including insurers, payment institutions and pension funds.
• The Dutch Authority for the Financial Markets (Autoriteit Financiële Markten) issues Authorizations to financial entities, including investment firms, trading venues, (managers of) collective investment schemes (Alternative Investment Fund Managers and Undertakings for Collective Investment in Transferable Securities) and financial service providers.

Some of the authorization processes require a mandatory advice of the Dutch Central Bank (de Nederlandsche Bank) from the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten) and vice versa. This means that the regulatory authorities cannot authorize certain entities without the opinion of the other regulatory authority in the ‘twin-peaks’ supervisory model.

All communications, including the application, may be in English (including physical meetings). If deemed necessary, eg for technical legal reasons, some documents/communications may have to be in Dutch.

As part of the authorization process, depending on the type of authorization, the regulatory authorities might assess key individuals (eg daily policymakers, members of the supervisory board) on their suitability for their prospective role within the financial entity and/or on their integrity in general.

Authorized financial entities are listed in the AFM Register (register kept by the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten)) and/or DNB Register (register kept by the Dutch Central Bank (de Nederlandsche Bank). In addition, the European Central Bank keeps a list of significant and less significant banks in countries that adopted the Euro. This list is published on its website.

Depending on the type of application, an application fee applies (ranging from €1,000 to €150,000). There may also be ongoing yearly fees applicable and fees for specific acts/authorizations of the regulatory authorities (eg a declaration of no objection). In principle, the regulator has 13 weeks, for banks 26 weeks, to decide on the application. However, in practice this term is – depending on the circumstances – often extended.

The Financial Markets Conduct Act 2013 (FMCA) includes a licensing regime for providers of market services in New Zealand. Application fees range from NZD2,139 to NZD10,695.

All financial service providers with a place of business in New Zealand (including those who do not need to be licensed under the FMCA) must register under the Financial Service Providers (Registration and Dispute Resolution) Act 2008. Annual registration fees apply. From 29 June 2020 the registration requirements will change requiring every person who is in the business of providing a financial service to retail clients to register if those financial services are provided to persons in New Zealand, regardless of where the financial services are provided from.

Registration under the Reserve Bank of New Zealand Act 1989 is required if an entity wishes to use a name or title that includes restricted words ('bank', 'banker', 'banking' or any other derivatives) for banks or classes of banks licensed overseas, representative bodies and associated persons of a registered bank, unit trust associated with a registered bank or non-financial institutions. Specific conditions of authorization are required for each of the different types of entity.

Any entity can apply to become a registered bank with the Reserve Bank of New Zealand. They take into account a number of factors (qualitative and quantitative) when determining an application.

To become an Authorized Financial Advisor you must meet a number of eligibility requirements prescribed by the Financial Markets Authority. This includes registering on the Financial Service Providers Register and joining a dispute resolution scheme. From 29 June 2020, any person who provides a financial advice service will be required to be licensed under new provisions in the FMCA.

Non-bank entities that take deposits from the public need to obtain a license under the Non-Bank Deposit Takers Act 2013.

Depending on the type of firm, a firm must apply to the Norwegian Financial Supervisory Authority (Finanstilsynet) (FSA) or the Norwegian Ministry of Finance for authorization.

The regulators must assess whether the application meets the required threshold conditions within six months of the submission of the complete application.

The application fee depends on the type of the application.

The regulator will also approve key individuals in their roles.

Authorized firms and individuals are registered on the Authorization Register (Konsesjonsregisteret), which is provided by the FSA online on their home page.

Any company which intends to provide banking and/or financial services must apply to the Superintendence of Banking, Insurance and Private Pension Fund Management Companies (SBS) for:

• authorization for the organization of the company; and
• authorization for the operation of the company.

The procedure and requirements are regulated by the General Act of the Financial and Insurance Systems and Internal Organization Act of the Superintendence of Banking and Insurance (Ley General del Sistema Financiero y del Sistema de Seguros y Orgánica de la Superintendencia de Banca y Seguros) and the Regulations for the Incorporation, Reorganization and Establishment of Companies and Representatives of the Financial and Insurance Systems (Reglamento para la Constitución, Reorganización y Establecimiento de Empresas y Representantes de los Sistemas Financiero y de Seguros), enacted by Resolution SBS 10440-2008.

The SBS will assess whether the application meets the required threshold conditions within:

• 180 calendar days from the submission of the complete application for the establishment, authorization; and
• 220 calendar days from the submission of the complete application for the operating permit.

For authorizations requested by banks or financial firms or investment banks, the opinion of the Central Reserve Bank of Peru is required.

On the other hand, any company with the intention of participating in operations conducted and executed in the securities market, such as brokerage firms, stock exchanges, securities clearing, securitization companies, mutual fund management companies, investment fund management companies or collective fund management companies must apply to Superintendence of Securities Market (Superintendencia del Mercado de Valores, or SMV) for:

• authorization for the organization of the company, and
• authorization for the operation of the company.

The procedure and requirements are established based on the type of entity to be incorporated or the services to be provided.

In both cases, individuals and legal companies applying as organizers must demonstrate moral integrity and financial capacity. Board and management members must demonstrate the required technical ability for the running of the company.

There are no application fees for the submission and assessment of the applications submitted before the SBS. For any authorization to be granted by the SMV, an application fee of PEN 3,850 (equivalent to approximately US$1,140) must be paid for each procedure.

Authorized firms and individuals are listed on the SBS' and SMV's websites.

In relation to performing banking activities, the PFSA has to be informed by the competent supervisory authorities of a home Member State about the types of operations to be performed by a credit institution.

Brokerage activities may be commenced by a foreign investment firm in Poland after the PFSA has been notified by the competent supervisory authority that has granted the investment firm license to perform brokerage activities, of the planned commencement of such activities.

EU payment institution or EMI (electronic money institutions) may commence cross-border activities in Poland after the PFSA has been informed by the competent supervisory authorities of a home Member State about a name, a registered seat, an address and types of payment services to be performed by such institution.

A firm must apply to the Polish Financial Supervision Authority for the relevant type of regulatory authorization.

The application fee depends on the type of application and ranges from PLN600 (approx. €140) to PLN13,000 (approx. €3,000). The application fee for the authorization of banking activity is equal to 1% of the share capital of the bank.

Authorized firms and individuals are listed in registers maintained by the Polish Financial Supervision Authority (eg register of investment firms or register of foreign investment funds).

Depending on the type of activity, a firm must apply to the Bank of Portugal, Portuguese Securities Market Commission or Portuguese Insurance and Pensions Funds Supervising Authority for authorization.

Bank of Portugal

The incorporation of a credit institution, financial firm (including a firm involved in the management of investment funds), payment institution and e-money institution is subject to prior authorization by the Bank of Portugal.

The Bank of Portugal must assess whether an authorization request meets the required threshold conditions within six months (in the case of applications for credit institutional or financial firms) or three months (in the case of payment institutions and electronic currency institutions) of submission of a completed application or submission of additional information requested (if later), provided that an assessment must be made not later than 12 months from the date of the submission of the completed application in any event.

Once authorized, the shareholders have 12 months to register the firm with the Commercial Registry.

The Bank of Portugal is also responsible for the approval of the appointment of key individuals (eg senior management, audit committee) for the supervised entities.

Portuguese Securities Market Commission

The Portuguese Securities Market Commission is responsible for authorizing the creation and termination of regulated markets, including multilateral trading facilities, in Portugal. The activity of fund management is also subject to registration with the Portuguese Securities Market Commission.

Credit institutions which intend to carry on investment services and financial investment activities must, following authorization by the Bank of Portugal, register with the Portuguese Securities Market Commission. The Portuguese Securities Market Commission must assess whether an application for registration meets required threshold conditions within 30 days of the date of receipt of a complete application or the submission of complementary information requested (if later). An application for registration is deemed rejected if not accepted by the Portuguese Securities Market Commission within the applicable timeframe.

Appointment of key individuals (eg senior management, audit committee) in such entities is also subject to the approval of Portuguese Securities Market Commission.

The registration fee depends on the type of application.

Portuguese Insurance and Pensions Funds Aupervising Authority

Insurance and reinsurance activity

The incorporation of an insurance or reinsurance firm is subject to prior authorization by the Portuguese Insurance and Pensions Funds Supervising Authority. The Portuguese Insurance and Pensions Funds Supervising Authority must assess whether an application meets required threshold conditions within six months of the submission of a completed application or the submission of complementary information requested (if later), provided that such assessment must be made not more than 12 months from the date of the submission of the completed application in any event.

Once authorized, the shareholders must incorporate the firm within six months and initiate the activity for which the firm is authorized within 12 months.

Pension funds management activity

The activity of managing pension funds is subject to the supervision of the Portuguese Insurance and Pensions Funds Supervising Authority, who must approve the constitution of pension funds.

The Portuguese Insurance and Pensions Funds Supervising Authority must assess whether an application for approval meets the required threshold conditions within 90 days of the submission of the complete application or the submission of complementary information requested (if later).

Following authorization of a firm carrying on the activity of managing pension funds, the shareholders must incorporate such firm within six months and initiate the activity for which they have been authorized within 12 months.

Insurance and reinsurance mediation activity

Both natural and legal persons domiciled in Portugal can operate the activity of insurance and reinsurance mediation provided they are registered as mediators at Portuguese Insurance and Pensions Funds Supervising Authority.

The Portuguese Insurance and Pensions Funds Supervising Authority must approve the appointment of key individuals (eg senior management) for the supervised entities.

Commercial banks

The entity must file with the office of the Secretary of State, a duly authenticated copy of its corporate charter or articles of incorporation and a certificate sworn to by the president, manager, agent or cashier or other authorized official of such bank, and attested to by a majority of its board of directors, stating:

• the name of said bank;
• the location of its existing or proposed main office or place of business in Puerto Rico;
• the purpose or purposes of its business;
• the amount of its paid-in capital;
• the amount of capital in cash;
• the amount of the bank's assets, including what they consist of and their cash value;
• an itemized statement of its liabilities and whether any of its debts are secured, and how they are secured; and
• the names and mailing addresses of all the directors and officials of the bank and the dates when their terms of office expire.

Foreign banks must additionally file at the same time, with the office of the Secretary of State of Puerto Rico, a certificate with the official seal of the bank and signed by the president, vice president or other acting head, and its cashier, if there is one, stating that the bank has consented to be sued in the courts of Puerto Rico in any and all causes of action originated against it in Puerto Rico and that the service of notice on the bank as defendant as well as any other judicial proceeding may be made on a given person, resident of Puerto Rico, whose name and place of residence shall be stated on the certificate; and service thus made upon the agent, shall be valid service on the bank.

The written consent of the person designated to act as agent shall also be filed, and such designation shall remain in force until a written revocation of the same is filed in said office, executed in the same manner, in which case some other person shall be designated to act as agent.

A certified copy of a designation so filed, together with a certificate stating that it has not been revoked, shall constitute presumptive evidence that the designation has been made and shall be conclusive evidence of the authority of the official making it. An investigative fee of at least USD2,500 may be applicable in the event of the establishment of a branch of a foreign bank in Puerto Rico. If the applicable fee is more than USD2,500, such excess will be notified to the applicant.

Both domestic and foreign domestic banks must have been issued a license by OCFI allowing for registration with the State Department prior to taking any of the steps set forth above.

Securities broker-dealers

The license under the Uniform Securities Act (PRUSA) is a license as a securities broker-dealer if the entity does not qualify for an exemption from registration.

A broker-dealer may register or notify its registration statement initially, or renew its registration or notice of registration statement, by filing an application or notice before the Office of the Commissioner of Financial Institutions of Puerto Rico (OCFI), and also giving consent to be summoned pursuant to the provisions of the PRUSA. The application or notice shall contain any information regarding the matter required by the OCFI, such as:

• the manner and place in which the applicant was organized;
• the manner in which the applicant intends to conduct business;
• the qualifications and business history of the applicant; in the case of a broker-dealer, the qualifications and history of any partner, official or director or of any person occupying a similar position or performing similar functions, or any person directly or indirectly controlling the broker-dealer;
• any injunction or administrative order or conviction for a crime involving securities or any aspect of the securities business, or any dishonest activity unrelated to the securities business; and
• the financial condition and history of the applicant.

The OCFI may, through regulation or order, require that the applicant of an initial registration publish notices relative to their application in one or more of the newspapers published in Puerto Rico, designated by the OCFI. If no denial order is in effect concerning the registration and no proceedings are pending pursuant to the PRUSA, the registration shall be effective at noon of the thirtieth day after the application has been filed. The OCFI may, through regulation or order, specify an earlier effective date and may, through an order, defer the effective date until noon of the thirtieth day after any amendment has been filed.

• Any applicant for an initial registration or renewal shall pay a filing fee of USD500 in the case of a broker-dealer or USD150 in the case of an agent. When the application is denied or withdrawn, the OCFI shall retain the total filing fee.
• The OCFI, by regulations to such effect, may require the broker-dealers to have a minimum capital or prescribe the ratio between the net capital and the total debt, subject to the limitations as established in §15 of the Securities Exchange Act of 1934.

Subject to the limitations imposed by §15 of the Securities Exchange Act of 1934, with regard to broker-dealers, the OCFI may require the broker-dealer, through regulations to such effects, to post bonds up to the sum of USD50,000, and may establish conditions. Any appropriate deposit whether in cash or securities shall be accepted in lieu of the required bond. Registered persons whose net capital, which can be defined by regulations, exceed USD100,000, or who can offer such other securities that are acceptable to the OCFI, shall not be required to post a bond. Every bond shall provide for any action under §410 of the PRUSA (Civil Liabilities), and if the OCFI thus orders it by regulation or order, by any person who may have a cause of action that does not arise from the PRUSA. Every bond shall provide that no lawsuit shall be filed to enforce any liability contracted by virtue of the bond unless the suit is filed within two years after the sale or any other act that gives rise to the suit.

• It shall be required that the broker-dealers who wish to register in Puerto Rico shall be members of the Financial Industry Regulatory Authority (FINRA), or its successor.
• The OCFI may use the services of the Central Registration Depository or any successor or similar system operated by FINRA or its affiliates, to accept registration requests, the filing of documents and the collection of fees in the name of the OCFI.

Other financial institutions

Financial institutions under the jurisdiction of the OCFI need to obtain a license under the appropriate statute that usually requires the filing of an application, information about its directors, officers and shareholders, filing fees and, in some cases, a fidelity bond.

Depending on its type, an entity must apply to the National Bank of Romania (NBR) or the Financial Supervisory Authority (FSA) for authorization.

Credit institutions and non-banking financial institutions

Romanian credit institutions (as well as the branches of credit institutions from third (non-EU/ European Economic Area) states must be authorized by the NBR when performing a regulated activity in Romania. The authorization process comprises two stages, namely the:

• approval of the establishment of the respective credit institution; and
• authorization of the functioning of such credit institution.

The NBR will also approve key individuals (eg senior management) in their roles at the level of the respective credit institution.

The NBR must approve or reject a request for authorization within four months of the application. Such term may be suspended in certain cases provided by law. Authorized credit institutions are registered with a special register maintained by the NBR.

Also, Romanian non-banking financial institutions (NFIs) (as well as subsidiaries established in Romania by foreign NFIs) may perform lending activities in Romania only after registration with the NFI General Registry or, as applicable, the NBR Special Registry, maintained by the NBR. Such registration is performed by the NBR upon notification of the establishment of the respective NFI (which must be performed within 30 days of the NFI registration with the Romanian Trade Register) and submission of the required documentation.

Investment firms and investment vehicles

Both investment firms and investment vehicles must apply to the FSA for authorization.

In order to be licensed by the FSA, investment firms must satisfy the required conditions including:

• the initial capital must amount to at least the RON equivalent of €730,000; and
• the day-to-day management must be carried out by at least two persons, who are also empowered to represent the investment firm.

There are several types of authorization. Depending on the nature of the business a person may be required:

• to obtain a license from the Central Bank of the Russian Federation (CBR);
• to obtain a permission from the CBR;
• to obtain accreditation from the CBR;
• to be added to a register by the CBR; and
• to be a member of a self-regulated organization.

The process and application fees vary depending on the type of authorization.

The CBR maintains and publishes lists of licenses and authorized persons on its official website.

The main authorization requirements are obtaining an approval and/or a visa depending on the type of entity or individual. Under the General rules of the CREPMF, some investment activities require an approval (agrément) from the CREPMF and others require authorization from both the CREPMF and BCEAO (Regulation 09/2010).

In accordance with the applicable laws, rules and regulations, the conduct of the following activities on the regional financial market, without this list being exhaustive, is subject to the approval or authorization of the Regional Council: securities trading, maintaining securities accounts, reception and transmission of orders, presentation of daily buy and sell offers, asset management mandates, financial marketing or solicitation, collective asset management, debt securitization (titrisation des créances), financial rating, financial transaction guarantee (Garantie des opérations financières),

Once applications are received, they are assessed within a one- to three-month period from the date of filing of the application.

The application fee depends on the type of entity and the nature of the activity, ranging from XOF500,000 to XOF50 million.

The application process will end up with an individual decision by the Regional Council (CREPMF).

A list of authorized entities and individuals can be found with the CREPMF and the Regional Stock Exchange (BRVM).

To conduct a regulated activity in Singapore in the financial services sector, a firm must apply to the Monetary Authority of Singapore for authorization if applicable. As the main regulator, the Monetary Authority of Singapore authorizes a firm under legislation applicable to the regulated activity it conducts. Commercial banks are primarily authorized under the Banking Act, financial advisors are authorized under the Financial Advisers Act and capital markets intermediaries are authorized under the Securities and Futures Act.

To obtain authorization, a firm must apply to the Monetary Authority of Singapore with supporting documentation such as constitutional documents, financial information and business plans and must also fulfil all requisite criteria.

Under the Securities and Futures Act, an application fee ranging from S$200 to S$1,000 must be paid, depending on the authorization sought. The application fee is regulated under the Securities and Futures Act. Prospective applicants who intend to conduct banking business in Singapore are encouraged to contact the Monetary Authority of Singapore at an early stage to discuss plans prior to submitting a formal application.

Authorized firms are listed in the Financial Institutions Directory of the Monetary Authority of Singapore.

Relevant firms must apply to the National Bank of Slovakia for authorization.

The regulator must assess whether the application meets the required threshold conditions. In the case of issuance of a banking license, the regulator must complete the assessment within six months of the submission of the complete application.

The application fee depends on the type of the application ranging from EUR40 to EUR5,000.

The regulator will also approve key individuals (e.g. senior management) in their roles.

Authorized firms and individuals are listed in a number of different registers (e.g. Register of Alternative Investment Fund Managers) maintained by the National Bank of Slovakia.

Depending on the type of services a prospective applicant wishes to render in South Africa, an applicant must submit an application:

• to the Registrar of Banks, in accordance with the Banks Act in order to register as a bank in South Africa;
• in accordance with the Collective Investment Schemes Control Act (CISCA), to register as a manager of a collective investment scheme, (see Establishing and investing in debt and hedge funds); or
• to the Financial Sector Conduct Authority (previously known as the Financial Services Board) or a recognized representative body, in accordance with Financial Advisory and Intermediaries Services Act (FAIS) to become a financial services provider. FAIS regulates the activities of all non-banking financial services providers.

International banks can operate in South Africa as either a representative office or a branch with the approval of the Registrar of Banks. Each of these models is subject to the requirements of the Banks Act, and the overall regulatory oversight of the South African Reserve Bank. The authorization requirements and process (the process can take up to six months) in respect of branches are more onerous than those of representative offices, as representative offices are not authorized to accept deposits from the public.

Foreign investment funds may register as 'foreign collective investment schemes' under CISCA. In order to qualify for South African registration, a foreign fund must have an investment policy which is consistent with the requirements set out under CISCA.

Depending on the type of firm, a firm must apply to the Comisión Nacional del Mercado de Valores (CNMV) or Bank of Spain for authorization or registration, as the case may be.

The regulators must assess whether the application meets the required threshold conditions within six to twelve months (depending on the kind of entity) of the submission of the complete application.

The application fee depends on the type of the application ranging from €2,500 to €10,000.

The regulators will also approve key individuals (e.g. senior management) in their roles.

Authorized firms are listed on the Bank of Spain's register and CNMV's register.

Depending on the type of firm, a firm must apply to the Swedish Financial Supervisory Authority (Finansinspektionen) for authorization.

The regulator must assess whether the application meets the requirements. Depending on the type of application, this will be done within 45 days to five months of the submission of a complete application.

The application fee depends on the type of application ranging from SEK600 to SEK720000.

Depending on the type of firm or the transaction, a firm or an individual must generally apply to obtain authorization from the relevant regulator and satisfy documentary requirements. 

Certain activities are exempt from authorization. For instance, certain types of activity only require the satisfaction of documentary or information requirements before commencement or upon completion of a transaction. Activities exempt from authorization but which must satisfy documentary filing requirements include private placement offerings of debentures or shares, as regulated by regulations of Securities and Exchange Commission.

Depending on the type of financial institution, a firm shall apply for authorization from either the National Bank of Ukraine, the National Securities and Stock Market Commission or the National Commission for Regulation of Financial Services Markets of Ukraine. The relevant regulator will assess the application on the terms set out in statutory law.

Banking activity

The application fee for a banking license amounts to GBP1,134 (UAH 35,890) and the procedure takes two months following receipt of the full set of application documents.

Financial services

The application fee for a license for carrying on financial services, including factoring, financial leasing and asset management, amounts to GBP64 (UAH 2,027) and the procedure takes thirty days following receipt of the full set of application documents.

The application fee for a license for carrying on particular types of professional activities in the capital market amounts to GBP95 (UAH 3,000) and the procedure takes three months following receipt of the full set of application documents for Ukraine residents, and six months for non-Ukraine residents.

Staff requirements

There may be certain requirements for key individuals, including senior management, to be employed in banks, funds and financial institutions. The regulator will assess whether or not they meet the applicable requirements.

Registers

Authorized firms, banks and individuals are listed in the following registers:

• State Register of Financial Institutions;
• State Register of Financial Institutions that Provide Financial Services in the Securities Market;
• Register of Payment Systems;
• List of Operating Banks; and
• Unified State Register of Collective Investment Funds (publicly unavailable but information may be provided on charged basis).

Depending on the type of firm, a firm must apply to the Financial Conduct Authority (FCA) or Prudential Regulation Authority (PRA) for authorization.

The regulators must assess whether the application meets the required threshold conditions within six months of the submission of the complete application.

The application fee depends on the type of the application ranging from £1,500 to £25,000.

The regulator will also approve key individuals (eg senior management) in their roles.

Authorized firms and individuals are listed on the FCA Register.

Depending on the type of firm, a firm must apply to the Financial Conduct Authority (FCA) or Prudential Regulation Authority for authorization.

The regulators must assess whether the application meets the required threshold conditions within six months of the submission of the complete application.

The application fee depends on the type of the application ranging from £1,500 to £25,000.

The regulator will also approve key individuals (eg senior management) in their roles.

Authorized firms and individuals are listed on the FCA Register.

This is dependent upon what type of business/financial activity the firm would be participating in the UAE. Secondly, it depends where the firm is located either onshore UAE or in one the economic free zones (in the case of finance, most likely to be in the Dubai International Financial Centre (DIFC) or Abu Dhabi Global Market (ADGM). The institutions listed in our answer to Regulatory authorization – regulators (ie the Central Bank, DIFC, Dubai Financial Services Authority and ADGM etc) have their own authorization requirements and processes in place.

If in doubt, the first port of call is the relevant Emirate's Economic Development Department who can advise further.

Lending

The need for authorization to offer credit products varies depending on the type of product (consumer or commercial) and the type of collateral securing the product (real estate or non-real estate). Most product offerings require prior authorization. Certain entities (e.g. savings associations, credits unions, and banks) are authorized to lend on a national basis. Other non-bank lenders are required to obtain individual state authorization, which generally permits lending to borrowers located only in that state.

In most cases, the process for obtaining the requisite authorization is initiated with an application that typically includes identification of control parties and management, disclosure of any negative civil, criminal, and regulatory history, meeting capital and/or surety bond requirements, providing financial statements, business plans, and organizational charts, and related compliance obligations as discussed below.

Broker-dealers

Obligations include:

• registration of the entity with the Securities and Exchange Commission (SEC) as a broker-dealer;
• registration of the entity in each state in which it 'does business' (by having a physical presence in the state or by engaging in business with persons inside the state from outside the state);
• membership in a registered national securities association, i.e. the Financial Industry Regulatory Authority (FINRA) – the only exception is for broker-dealers that do no public customer business and only engage in activities on a national securities exchange of which they are a member, who may in some cases avoid FINRA membership;
• registration with FINRA of each individual engaged in the broker-dealer’s securities business (except for clerical and administrative personnel) and with each state in which the individual does business – as with broker-dealer firms, registration by individuals working for firms whose only business is on the floor of an exchange may in some cases be done through that exchange;
• registration of each individual only after successful completion of one or more proficiency examinations relevant to the person’s business; and
• fees and charges generally for each of the above items.

Investment Advisers (as defined in the Investment Advisers Act of 1940)

Obligations include:

• registration of the entity with the SEC as an 'Investment Adviser' (as defined in the Investment Advisers Act of 1940); or
• for certain small Investment Advisers (determined by assets under management), registration instead with the particular state in which they do business.

There are no self-regulatory organizations for investment advisers. Investment Adviser personnel do not have to register with the SEC; however, they may be required to register with certain states in which they do business and take a proficiency exam in connection therewith.