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IFR/IFD – Application for a banking licence by investment firms qualifying as banks
Published: 20 November 2020
This factsheet relates to the application of a banking licence by investment firms that qualify as a bank under the IFR/IFD.
The definition of “credit institution” (bank) as meant in Article 4(1), item 1, of the CRR has changed with the entry into force of the IFR. Certain investment firms that engage in trading for their own account or in the placing of financial instruments on a firm commitment basis now qualify as banks. The exact definition is included in Article 62, item 3, under a, of the IFR.
The application for a banking licence must have been submitted no later than the date of entry into force of the IFD Implementation Act
Institutions qualifying as banks must apply for a banking licence by the date as meant in Article 8a(1) of the CRD . Institutions having their registered office in the Netherlands that are already subject to the licensing requirement on the date of entry into force of the IFD Implementation Act must have submitted an application for a banking licence to DNB by that date.
If an institution has submitted its application for a banking licence in good time (i.e. by the date of entry into force of the IFD Implementation Act) it may continue its activities without a licence as long as the ECB has not yet taken a decision on the application.
If the institution has not submitted its application for a banking licence by the date of entry into force of the IFD Implementation Act it is in non-compliance with Section 2:11 of the Financial Supervision Act (Wet op het financieel toezicht – Wft), i.e. the prohibition to operate as a bank without a licence issued by the ECB.
Possibility to apply for a banking licence by 27th december 2020
Institutions that meet the criteria to qualify as a bank pursuant to Article 62, item 3, under a, of the IFR or expect to do so by the intended date of entry into force of the IFD Implementation Act (26th june 2021) may submit an application for a banking licence (in accordance with Article 8a(3) of the CRD, as implemented in Section III of the IFD Implementation Act) by 27th december 2020.
How to apply for a banking licence
You can apply for a banking licence through the Digital Supervision Portal (DLT). More information on how investment firms can apply for a banking licence, such as the application form to be used and the documents to be submitted, will be published on this page shortly.
We will not charge a fee for handling the banking licence application before we have formally taken the application into consideration, which will not be before the date of entry into force of the IFD Implementation Act.
If your investment firm comes under the banking licence requirement, or if you have any questions about this requirement or the licence application process, please contact your account supervisor. Or you can send an email to: email@example.com.
On 16 December 2020 the EBA published the final report on its draft regulatory technical standards related to the implementation of a new prudential regime for investment firms, including an RTS on the information that must be submitted as part of a banking licence application. See the EBA website.
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