A clear overview of the MiFID II passport: how one EEA home-state license and a notification process unlock cross-border investment services across the European Economic Area.
MiFID II passporting allows an investment firm licensed in one EEA member state to provide investment services across the entire European Economic Area through a notification process coordinated by its home regulator, rather than seeking a separate authorization in each host state.
MiFID II passporting is the mechanism by which an investment firm authorized in its “home” EEA member state may carry on certain investment services and activities in other EEA countries (“host” states) once the passport procedure is complete. The legal basis is Directive 2014/65/EU (MiFID II), as transposed into national law in each member state.
Instead of applying for a fresh license everywhere the firm wishes to operate, the home supervisor verifies eligibility and exchanges information with host supervisors. Clients and counterparties can then be served on a cross-border basis within the scope of the passported permissions, subject to host-state conduct and consumer-protection rules where applicable.
For firms such as substnz Capital Partners GmbH, a BaFin-supervised investment firm in Hamburg, passporting is how a single German authorization supports distribution and service models across many EEA markets. substnz’s license is passported to 17 other EEA jurisdictions (BaFin public register 157452).
One home-state authorization can underpin cross-border provision of passportable investment services throughout the EEA, within the categories and conditions notified to regulators.
The firm typically pursues passporting via its home regulator, which notifies host regulators. This is distinct from establishing a separately authorized subsidiary in each country.
Once the passport is active, the firm can serve eligible clients in host states in line with MiFID II and local implementing rules, including any host conduct requirements.
Where permitted, tied agents acting under a passporting investment firm may support cross-border activities within the firm’s supervisory and liability framework.
Passporting means the firm does not need a second investment-firm authorisation in each host state for the same MiFID services. It does not skip tied-agent registration. Agents are registered in the country where they are established, which is a separate step from the firm’s passport.
Firms may operate cross-border from the home state (freedom to provide services) or establish a branch in a host state (freedom of establishment); each route has its own notification path and obligations.
The firm holds an investment firm authorization in one EEA member state (e.g., Germany as a BaFin-supervised investment firm) with permissions that are eligible for a MiFID II passport.
The firm files the passport notification with its home competent authority, specifying the services, activities, and host states (and branch details if relevant).
The home authority assesses completeness and regulatory compliance, then transmits the notification to the host authorities through the agreed EU channels.
After the process and any applicable waiting periods, the firm may begin or continue providing the passported services in the notified host states, remaining subject to home and host rules.
Investment firms that want to market funds, advise professional clients, or support placement across Europe without rebuilding compliance stacks in every jurisdiction benefit most. Asset managers, placement agents, and distribution partners often work with a passporting WpI to access those markets under one supervisory umbrella.
substnz Capital Partners GmbH uses its passported investment firm license to support tied agents and partners who need regulated access to European investors while relying on a single BaFin-supervised home entity (register 157452).
It is the EU/EEA process that lets an investment firm use its home-country license to offer certain investment services in other member states after its home regulator notifies the host regulators. It is based on MiFID II (Directive 2014/65/EU).
Timelines depend on the home authority’s workload, the completeness of the file, and whether the passport is for services only or includes branches. Host states generally cannot veto a compliant passport in the same way as a full new licensing process, but practical onboarding still requires careful legal and compliance preparation.
Tied agents are not separately “passported” in the same way as the firm itself, but they act under the appointing firm’s responsibility. Agent registration is a separate step in the country of establishment. Where the firm’s license is passported, tied-agent activities must align with the firm’s permissions, host-state rules, and the firm’s internal governance. ESMA’s 7 July 2026 supervisory briefing on triangular passporting (paragraphs 20–27) sets expectations where an agent in one host state serves clients in another; those are supervisory expectations, not a new licence.
Passporting applies to MiFID investment services and activities that the home license actually covers, as notified—for example investment advice, reception and transmission of orders, or dealing on own account, subject to the firm’s authorization. Ancillary services and non-MiFID products may fall under other regimes.
Passporting does not replace product-level rules (e.g., AIFMD marketing notifications), conduct-of-business requirements in host states, or local rules on branches and third-country firms. Firms must still meet ongoing prudential and conduct obligations at home.
substnz Capital Partners GmbH is a BaFin-supervised investment firm in Hamburg with a license passported to 18 EEA markets (BaFin register 157452). substnz provides regulatory infrastructure for partners accessing European markets through that framework.
If you want to understand how a passported investment firm license can support your distribution or tied-agent model, our team will walk you through the practical steps.