CRR investment firm
Among CRR securities company (formerly Securities Trading Company ) refers to financial services institutions that the broking or underwriting operate or institutes as the operator of a multilateral trading system , the placement of the transaction or as principals act for others.
History of origin
The German Banking Act (KWG) knew the term securities trading company until December 2014. The replacement term CRR investment firm was created by the Capital Adequacy Regulation (CRR), which has been in force in all EU member states since January 2014 , which in its legal definition of Art. 4 Para. 1 No. 2 of Directive 2013/575 / EU CRR on Art. 4 Paragraph 1 No. 1 of Directive 2004/39 / EC refers. After this is when an investment firm is a " legal person who, as their regular occupation or business on a commercial one or more investment services provides to third parties and / or one or more investment activities on a professional". This term includes financial service institutions for which the Capital Adequacy Ordinance is directly applicable. In addition to the CRR credit institutions, investment firms belong to the "CRR institutions" without being considered credit institutions themselves . Section 1 (3d) sentence 2 KWG also refers to the application of the Capital Adequacy Ordinance with regard to investment firms.
Business purpose
Investment firms provide certain investment services. In comparison, investment firms have significantly higher regulatory requirements than the other financial services institutions under the KWG. CRR investment firms are institutions that operate the finance commission business or the issuing business ( banking business within the meaning of Section 1 (1) Clause 2 No. 4 or No. 10 KWG) or institutions that provide financial services (within the meaning of Section 1 (1a) Sentence 2 no. 1b, 1c or 4 KWG), i.e. operate as an operator of a multilateral trading system , the placement business or as a proprietary trader for others (with the exception of high-frequency trading pursuant to Section 1 (1a) sentence 2 no. 4 d KWG). Furthermore, financial services institutions that offer financial services in accordance with Section 1 Paragraph 1a Clause 2 No. 1, 1a, 2 or 3 KWG ( investment advice , investment and contract brokerage as well as financial portfolio management ) are to be classified as investment firms even if they are authorized to do so to procure ownership or possession of funds or securities from customers in the provision of these services and / or to trade in financial instruments for their own account, without this fulfilling the criteria of proprietary trading under Section 1 (1a) sentence 2 no. 4 KWG. They are prohibited from doing other banking such as credit or deposit transactions .
Specifically, this includes, in particular, securities trading banks , proprietary traders, investment and contract brokers, investment advisors, financial portfolio managers, companies with limited custody business, companies operating a multinational trading system or operators of placement transactions .
Legal consequences
Although the Capital Adequacy Ordinance applies directly to investment firms, CRR investment firms are exempted from some regulations. Pursuant to Art. 498 (1) CRR, the capital adequacy regulations of the Capital Adequacy Ordinance do not apply to investment firms whose main activity is exclusively the provision of investment services or activities in connection with financial instruments in accordance with Annex I Section C No. 5, 6, 7, 9 and 10 of the Directive 2004/39 / EC and for which Directive 93/22 / EEC did not apply on December 31, 2006. Likewise, according to Art. 493 (1) CRR, the large exposure regulations do not apply to CRR investment firms.
International
While the majority of securities trading in Germany is carried out through major banks , savings banks , cooperative banks and other credit institutions, special securities trading houses and brokerage firms play a far more important role in this market in the USA and Japan . In Austria , CRR credit institutions and CRR investment firms also refer to the EU regulation in Section 1a (1) BWG .
Individual evidence
- ↑ Deutsche Bundesbank of September 5, 2014, information sheet on the granting of a license to provide financial services in accordance with Section 32 (1) KWG , p. 10