Investment Advisory and Securities Broker license under European MIFID Directive
Pan-European financial advisory and securities brokerage license opening World’s biggest single financial market in Europe of almost 450 million consumers and over 20 million businesses. One license for all Europe under the European MIFID Directive.
EU Directive 2004/39/EC on Markets in Financial Instruments Directive (MiFID or MiFID I) allows investment advisors, securities brokers and Forex service providers licensed in one European Union (EU) member state to offer their services all over EU/EEA financial market of 30 European states. MiFID creates coherent regulation of financial and investment services between EU member states.
One investment advisory and brokerage license for all Europe
MiFID licensed Brokerage, Forex and investment advisory companies allowed provide services to the clients in any other EU/EEA member state, including big national markets such as Germany and France, without any additional licensing. License passporting procedure is very simple and takes one month. Regulators from other EU member states are restricted from implementation of any additional regulations or barriers.
Lithuanian national regulation allows directors of the company, dealers, and brokers to reside outside Lithuania enabling them to be near their clients.
Lithuanian licensed companies are allowed to be direct members of the stock exchanges, depositories, and clearinghouses registered in any other EU jurisdiction without any restrictions. This creates safe, efficient, and cost-effective pan-European investment advisory, securities brokerage and Forex dealing vehicle opening single European financial market.
Modern financial infrastructure makes Lithuania and it’s capital Vilnius a very attractive place to securities brokers and investment advisers from around the world. Revolut Securities holds Category B financial brokerage license in Lithuania serving Revolut European clients. Founder of the world’s first electronic stock market Nasdaq has a strong presence in Lithuania and the Baltics establishing Nasdaq Technology and Business Support Competence Center in Vilnius.
Central Securities Depository in Lithuania, Latvian and Estonian is also owned by Nasdaq providing high-level depository services. International banks SEB, Swedbank, DnB based in Lithuania together with their local rivals provide world-class financial infrastructure for investors and FinTech start-ups. The possibility to outsource relatively cheap services from the local service providers gives a strong competitive advantage compared to other European jurisdictions.
Wealthtech licensing in business-oriented European jurisdiction
Wealthtech stands for wealth and technology and is kind of Fintech. It provides digital solutions for investment advice and management, brokerage, and wealth management in the same way as Fintech provides digital solutions for payment processing. Wealthtech transforms traditional investment services into efficient and cost-effective solutions using Artificial Intelligence, Big Data, and other technologies making investments assessable not only for high-net-worth individuals but for a wider range of clients. Robo-advisory, digital brokerage and portfolio management, micro-investments, expert investor following, and other digital investment management tools are considered as Wealthtech.
Business-oriented regulatory behavior and significantly lower finance institution incorporation, licensing and maintenance costs makes Lithuania preferred jurisdiction for the modern investment advisers, fund managers and stockbrokers planning to provide services in single European financial market.
Why Lithuania is top jurisdiction in Europe for brokerage and investment advisory licensing
- Fast licensing process.
- No particular requirement for company directors to reside in Lithuania.
- The documents can be submitted in English.
- Regulatory sandbox. The Bank of Lithuania is committed to support star-ups and not to punish them during the first years of operation for minor infringements.
- Start-up visa. Special residence permits for the citizens of non-EU/EEA countries running innovative businesses in Lithuania.
- Possibility to be the direct members of stock exchanges, depositories, and clearinghouses in any other EU jurisdiction.
ECOVIS experience
Being part of ECOVIS International consulting network present in more than 80 counties around the world ECOVIS ProventusLaw currently is the most experienced financial licensing advisor in Lithuania. ECOVIS licensed more than 40 different financial institutions including big names deVere, Nium, Contis Group setting up their European operations in Europe. ECOVIS ProventusLaw provides all the necessary services for the bank licensing, including preparation of licensing documentation, representation at the Bank of Lithuania (Regulator) during the licensing procedure, company incorporation, office registration, advice on IT, HR, AML compliance, and other matters rising during the incorporation of investment business in Europe. After the licensing procedure completed, ECOVIS offers accounting, reporting, audit, compliance, and legal services for the operational business.
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