Pan-European investment advice and investment fund management license. One license opening opening World’s biggest single financial market of almost 500 million consumers and over 20 million businesses. Equity capital requirement – EUR 125 000.
EU directive 2009/65/EC on the Coordination of Laws, Regulations and Administrative Provisions Relating to Undertakings for Collective Investment in Transferable Securities (UCITS) allows investment managers licensed in one European Union (EU) member state offer their investment funds to all investors in European Union and European Economic Area (EU/EEA). EU directive 2011/61/EU on Alternative Investment Fund Managers (AIFMD) allows pan-European marketing of investment funds designed for professional or alternative investors. National regulators in other EU/EEA member states not allowed to make any barriers or rise additional requirements.
Modern financial infrastructure and favorable legislation makes Lithuania one of the most attractive places in Europe for investment managers targeting single European financial market. Creator of the world’s first electronic stock market Nasdaq has a strong presence in Lithuania and Baltics establishing Nasdaq Technology and Business Support Competence Center in Vilnius. Nasdaq Stock Exchanges in Tallinn, Riga and Vilnius form the Baltic Market, the core idea of which is to minimize the differences between the markets in order to facilitate cross- border trading. Central Securities Depository of Lithuania, Latvia and Estonia owned by Nasdaq and providing high-level depository services.
One Investment Management license for all Europe
Investment management companies registered in Lithuania allowed incorporate and manage investment funds registered in other EU member states. For instance, fund management company registered in Lithuania can manage investment funds registered in other jurisdictions like Luxembourg, keeping assets of the fund in Luxembourg depository and using services of other European brokers and investment advisers to distribute the funds shares and investment units. This creates safe, efficient and cost effective pan-European investment management vehicle.
Modern Lithuanian regulation allows fund managers reside outside Lithuania letting them to be near their clients all the time. Possibility to outsource relatively cheap NAV calculation, investor’s relations or other managerial functions from local service providers gives strong competitive advantage.
Business oriented Investment Management and Fund regulation
The Bank of Lithuania (Central bank and the Regulator) came out from the watchdog’s role, committed to consult and support star-ups and not punish them during the first year of operation for minor infringements. Attraction of the international investment and fund management companies is the publicly declared policy of the Lithuanian Government and Regulator. Business oriented regulatory approach and significantly lower finance institution incorporation, licensing and maintenance costs makes Lithuania preferred jurisdiction for investment advisers and manages targeting European market.
Reasons why Lithuania is top jurisdiction for Investment Management and Fund licensing
- Fast licensing process.
- No particular requirement for company top management to reside in Lithuania.
- The documents can be submitted in English.
- Regulatory sand box. The Bank of Lithuania is committed to support newly incorporated companies and not to punish them during the first years of operation for minor infringements.
- Startup visa. Special visas for the citizens of non-EU/EEA countries running innovative businesses in Lithuania.
ECOVIS experience in investment management and fund licensing
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 experience starts from the incorporation and licensing of the first Lithuanian modern investment fund NSEL 30 Index fund and Fund’s Management Company 20 year ago. ECOVIS licensed in Lithuania more than 35 different finance institutions. ECOVIS ProventusLaw provides all necessary licensing related services 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 business incorporation in Europe. After the licensing procedure completed, ECOVIS offers accounting, reporting, audit, compliance and legal services for the operational business.
More about FinTech companies registration and licensing in Lithuania – http://ecovis.lt/fintech/.