Passporting for credit institutions, insurance undertakings and investment firms

Credit institutions/insurance undertakings/investment firms authorised in an EEA Member State are in principle already authorised on the basis of their authorisation/licence in their Home State to also provide banking operations in other Member States (“single licence principle”). Cross-border activities may either be conducted through a branch (“freedom of establishment”) or under the freedom to provide services. The intention to conduct activities on a cross-border basis either under the right of establishment or the freedom to provide services, must be notified by the credit institution/insurance undertaking/investment firm to the respective supervisory authority.

Investment firms may also provide investment services in the territory of another Member State by means of freedom to provide services or through a branch. The authorisation to provide banking services or investment services on a cross-border basis in Member States arises following a notification procedure by the FMA and is also known as “European passporting”.