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Fintech does not have a passporting process. The cross-border provisions under Spanish law are available only to fintech entities regulated as financial service providers. The EU directives allow specific types of regulated entities to operate in other EU Member States without having to be authorised by the host Member State regulator.¹

Financial services providers that are regulated by the EU and run a fintech business can benefit from the passporting system. This scheme allows them to provide services in Spain on a freedom-to-provide-basis or by establishing a branch. The procedure required is clearly outlined by the main directives of the European Union, such as the fourth Capital Requirements Directive, MiFID II, Undertakings for Collective Investment in Transferable Securities Directive, Alternative Investment Fund Managers Directive (AIFMD) and PSD II, among others. It is merely a notification process that requires the home Member State to inform the host Member State of their intent to deliver services to its territory.¹

Even if they intend to provide services from their home state or through a branch, non-EU financial services providers must obtain an authorisation from the BoS, the CNMV or the DGSFP. Similarly, non-EU fintech companies authorised to provide financial services would need to follow the same authorisation process.¹

There are no restrictions on the ownership of fintech companies that are not regulated. A significant holdings regime applies to fintech entities regulated by the corresponding supervisory authority that require a purchaser of a 10 percent or higher stake to obtain prior approval from the supervisory authority.¹

Fintech in Spain

Fintech in other countries

Notes

1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/spain