Licensing

Hanfa’s licensing activities involve the assessment, based on relevant regulations, of the fulfilment of requirements relating to the issuance of approval to legal and natural persons to perform activities falling within Hanfa’s scope of competence.

The following are approvals issued by Hanfa in this process:

1. approval for financial companies falling within Hanfa’ scope of competence
2. approval for individual management board members 
3. approval for individual supervisory board members
4. approval to acquire a qualifying holding in a company
5. approval for insurance intermediaries as distributors of fund units.

The procedures presenting the first step in entering a financial market serve Hanfa to verify the fulfilment of the prescribed conditions relating to regulatory requirements for the establishment of a company, such as the amount of initial capital, and the conditions relating to companies’ organisational requirements, as well as a series of other essential preconditions.

Prior to issuing approvals, within the process of licensing management or supervisory board members of Hanfa’s supervised entities, Hanfa verifies the candidate’s good repute and integrity, their work experience, expertise and other requirements laid down by relevant laws and subordinate legislation. 

In the procedure conducted before Hanfa, holders of qualifying holdings prove their good repute, financial situation and the transparent origin of funds serving to finance the proposed acquisition.

In 2022, Hanfa carried out 225 licensing procedures, which covered the issuance of approvals to acquire a qualifying holding, authorisations, and approvals to perform the function of a management or supervisory board member, the issuance of authorisations to perform activities of a certified actuary and the issuance of authorisations to pursue insurance and reinsurance distribution business, as well as procedures determining the termination licences.

The largest number of licensing applications related to applications for authorisations to pursue insurance and reinsurance distribution business (70), the largest part of which were issued to insurance representation crafts (43) for insurance distribution business.