Regulation of Robo-Advisory in Europe and Germany

Christian Hammer ()
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Christian Hammer: Netfonds Financial Service GmbH

Chapter Chapter 8 in Robo-Advisory, 2021, pp 133-160 from Palgrave Macmillan

Abstract: Abstract In order to present the civil law and regulatory issues in a manageable format, we have tried, on the following pages, to give you a structured overview of the current legal framework based on national and European provisions, consisting, in particular, of the MiFID II Directive and the related German implementation laws: the Securities Trading Act (WpHG), the Banking Act (KWG) and the Anti-Money Laundering Act (AMLA/GWG). Given the broad range of requirements and the high market access barriers, every company has to think carefully about the services it wishes to offer, the licenses it will need and the regulatory requirements placed on its activities. The areas of asset management and investment advice are governed by a complicated set of laws, rules and regulations. It is therefore advisable to focus both on the services offered and on the product range. In response to the licensing requirements, a company can act as an investment intermediary under the German Trade Regulation Act or as a financial services institution with a license under the German Banking Act. The latter offers a further alternative in the form of the liability umbrella. In addition to the regulatory requirements for licensing and activities, onboarding also poses considerable practical problems. Identification obligations under the GWG and the digital conclusion of contracts must be well-thought-out and solved in technical terms. In addition, the strict requirements of the General Data Protection Regulation must be observed.

Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psincp:978-3-030-40818-3_8

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DOI: 10.1007/978-3-030-40818-3_8

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