Authorization Process Support

Obtaining an operational license issued by the National Bank of Hungary — or, where the entity is established in another country, by the home-state supervisory authority — is a prerequisite for providing most financial services. The scope of such regulated services, and of the entities subject to authorization, appears to be expanding.

KPMG has experience in supporting financial licensing processes. We assist our clients across the full spectrum of the licensing procedure – from mapping the regulatory environment to preparing and submitting the required documentation. Our experience in licensing support covers, among others, banks, fintechs (electronic money issuers, crypto service providers) and digital payment service providers. In addition, we provide assistance in the licensing and notification procedures related to cross-border activities.

KPMG offers comprehensive expert support throughout every stage of the licensing process, including regulatory environment analysis, strategic and business planning, preparation of the documentation package, and liaison with the Supervisory Authority.

We design the service in a modular way, drawing on the following support options:

We work on the licensing documentation related to the regulation of the client’s processes in a role adapted to the client’s needs (based on the client’s input we either prepare the material, perform a high-level consistency review of the material prepared by the client, or act in a quality assurance role), in line with the agreed division of tasks. If the processes are not yet in place, we provide advisory support for their development upon request. Where further required, we can also take on project management and liaison with the authorities.

To obtain an operational license, the necessary documentation and preparatory work typically include the following:

• Support in preparing impact studies, in the detailed definition of the client’s operating model and activity scope.

• Preparation of business and capital, as well as operational plans, or cooperation in these, including, if required, the financial analysis of comparative operating models.

• Support in establishing a comprehensive risk management framework, covering principles and processes for addressing financial, operational, legal, and even IT risks.

• Advisory on the appropriate establishment of the organizational structure and governance framework, including the proper presentation of the background of executive officers and owners, as well as the assessment of their suitability (fit & proper) requirements.

• Development of internal policies in modular task allocation.

• If required, our team supports the recording and specification of business processes, as well as the documentation of the IT systems and technological background, with particular emphasis on digital financial service providers.

• KPMG undertakes to support clients in their relations with supervisory authorities, including preliminary consultations, coordination of licensing processes, and managing supplementations and official communications.