Schalast | Legal framework

In addition to general civil law, the legal framework for FinTech structuring is shaped by regulatory provisions, for example the Banking Act, Payment Services Supervision Act, Asset Management Act, Legal Services Act and Trade Regulations.

Legislators and supervisory authorities are faced with the challenge of reducing the “blind spot” as far as possible in regulatory terms. Such regulatory gray areas arise because the Banking Act differentiates between financial service providers on the one hand and banks on the other. Inasmuch as FinTechs cannot always be unequivocally qualified as one or the other, regulatory requirements are not always clearly established in advance. Triggered by new product development on the FinTech market, German authorities are faced with a constant race to uncover the associated risks and regularly adapt the legal and regulatory requirements.