PAN-EUROPEAN MIFID FINANCIAL LICENSE FOR BROKERAGE, INVESTMENT MANAGEMENT, AND ADVISORY SERVICES. WEALTHTECH LICENSING

A Pan-European financial license unlocks access to the EU/EEA, the world’s largest single financial market. The EU’s Markets in Financial Instruments Directive 2004/39/EC (MiFID I) allows investment advisors, securities brokers, and Forex service providers licensed in one European Union (EU) member state to offer their services across the single financial market covering all 30 EU/EEA states. MiFID establishes a consistent regulatory framework for financial and investment services across Europe.

One License for European Brokerage, Forex, and Investment Advisory Services

Brokerage, Forex, and investment advisory companies licensed under MiFID can provide services to clients in any other EU member state, including major markets like Germany and France, without needing additional licenses. The license passporting process is straightforward and typically takes one month. Regulators in other EU member states are restricted from imposing supplementary regulations or barriers.

Lithuanian national regulations offer flexibility, allowing the CEO, board members, dealers, and brokers of licensed companies to reside outside Lithuania, enabling them to be closer to their clients. Furthermore, companies licensed in Lithuania can become direct members of stock exchanges, depositories, and clearinghouses registered in any other EU jurisdiction without restrictions. This facilitates the creation of a secure, efficient, and cost-effective pan-European vehicle for investment advisory, securities brokerage, and other services, providing access to the single European financial market at a lower cost and offering a competitive edge.

Lithuania and its capital, Vilnius, boast a modern financial infrastructure, making them highly attractive to securities brokers, and investment advisors globally.

Robinhood Europe UAB, a part of US listed licensed broker Robinhood Markets, Inc. holds A-category brokerage license issued by the Bank of Lithuania. ECOVIS ProventusLaw played a significant role in facilitating Robinhood’s decision choosing Lithuania for EU activities.

Revolut holds a Lithuanian B-category brokerage license, supporting its European brokerage operations.

Nasdaq, the pioneer of the world’s first electronic stock market, has a strong presence in Lithuania and the Baltic States, having established its Nasdaq Technology and Business Support Competence Center in Vilnius. The Nasdaq Stock Exchanges in Tallinn, Riga, and Vilnius form the Baltic Market, designed to minimize market differences and facilitate cross-border trading. The Central Securities Depository in Lithuania, Latvia, and Estonia is also Nasdaq-owned, providing advanced depository services.

International banks such as SEB, Swedbank, and Luminor, along with their local competitors based in Lithuania, offer a world-class financial infrastructure for investors and FinTech start-ups.

WealthTech Licensing and Business-Oriented Regulation

WealthTech, a subset of FinTech, focuses on providing digital solutions for investment advice and management, brokerage, and wealth management. Similar to how FinTech revolutionizes payment processing, WealthTech transforms traditional investment services into efficient and cost-effective solutions leveraging Artificial Intelligence, Big Data, and other technologies. This makes investments more accessible to a broader range of clients, not just high-net-worth individuals, creating a viable alternative to traditional investment banking. Examples of WealthTech include robo-advisory, digital brokerage and portfolio management and micro-investments platforms.

The Bank of Lithuania (the Central Bank and Regulator) has adopted a proactive approach, committed to consulting and supporting newly established innovative start-ups, offering a “regulatory sandbox” environment. This business-oriented regulatory stance, coupled with significantly lower financial institution incorporation, licensing, and maintenance costs, positions Lithuania as the preferred jurisdiction for modern investment advisors, fund managers, stockbrokers, and Forex dealers planning to operate within the single European financial market.

Why Lithuania is a Top Jurisdiction for Brokerage and Investment Advisory Licensing

• Fast licensing process.
• No strict residency requirements: Company management is not required to reside in Lithuania/Europe.
• English documentation accepted: Documents can be submitted in English.
• Regulatory “Sandbox”: A supportive environment for innovative start-ups.
• Start-up visas: Special visas are available for non-EU citizens running innovative businesses in Lithuania.
• WealthTech licensing solutions: Tailored solutions for technology-driven wealth management businesses.

ECOVIS Experience in Financial Licensing

As part of the ECOVIS International consulting network, spanning over 90 countries worldwide, ECOVIS ProventusLaw is recognized as a leading financial licensing advisor in Lithuania.

ECOVIS network provides comprehensive services for financial institution licensing, including:

• Preparation of licensing documentation
• Representation at the Bank of Lithuania (Regulator) throughout the licensing procedure
• Company incorporation and bank accounts opening
• Office registration and corporate secretary services
• Advice on HR, compliance, and other aspects of business incorporation

Following license issuance, ECOVIS offers ongoing support through accounting, regulatory reporting, audit, compliance, and legal services for the operational business.

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