Pan-European financial license opening single European brokerage and investment advisory market of 28 states and 500 million consumers.
EU Directive 2004/39/EC on Markets in Financial Instruments Directive (MiFID or MiFID I) allows securities brokers and foreign exchange (Forex) service providers licensed in one European Union (EU) member state offer their services all across single European financial market of 28 states. MiFID creates coherent regulation of financial and investment services between EU member states.
One brokerage, Forex and investment advisory license for all Europe
MiFID licensed Brokerage, Forex and investment advisory companies allowed provide services to the clients in any other EU member state, including big national markets such as UK, 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 to implement any additional regulations or barriers.
Lithuanian national regulation allows CEO and members of the board of the company, dealers and brokers to reside outside Lithuania enabling them to be near their clients.
Lithuanian licensed companies allowed being 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 at low cost and provides competitive advantage.
Modern financial infrastructure makes Lithuania and its capital Vilnius very attractive place to securities brokers, Forex dealers and investment advisers from around the world. Creator of the world’s first electronic stock market Nasdaq has 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 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 local rivals provides world-class financial infrastructure for investors and FinTech start-ups. Possibility to outsource relatively cheap services from the local service providers gives strong competitive advantage comparing to other European jurisdictions.
Why Lithuania is top jurisdiction for brokerage and investment advisory licensing
- Fast licensing process. Issue of the license within period of 3 months and even faster.
- No particular requirement for company management to reside in Lithuania.
- The documents can be submitted in English and amended “on the go” instead of formal writing forth and back.
- No regulatory sanctions for the first year. The Bank of Lithuania is committed to support star-ups and not to punish them during the first year of operation for minor infringements.
- Start-up visa. Special visas 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 in financial licensing
Being part of ECOVIS International consulting network present in more than 60 counties around the world ECOVIS ProventusLaw currently considered as the most experienced financial licensing advisor in Lithuania. During the period of last 12 months, ECOVIS licensed in Lithuania more than 10 finance institutions including big names deVere and Instarem setting up their European operations centres in Vilnius. 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, compliance and other issues rising during the incorporation of banking business 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/.