MIFID LICENSE FOR PAN-EUROPEAN BROKERAGE, FOREX, INVESTMENT MANAGEMENT AND ADVISORY SERVICES. WEALTHTECH LICENSING
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 offer their services all across single EU/EEA 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 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 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 their 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.
Wealthtech licensing and business oriented regulation
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 wider range of clients. It creates really working alternative to traditional investment banking. Robo-advisory, digital brokerage and portfolio management, micro investments, expert investor following and other digital investment management tools are considered as Wealthtech.
The Bank of Lithuania (Central Bank and Regulator) came out from the watchdog’s role, committed to consult and support newly established innovative start-ups and not punish them during the first year of operation for minor infringements. 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, stockbrokers and Forex dealers planning to provide services in single European financial market.
Why Lithuania is top jurisdiction for brokerage and investment advisory licensing
– Fast licensing process. Issue of the license within period of 3-6 months or 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 visas. Special visas for the citizens of non-EU countries running innovative businesses in Lithuania.
– Wealthtech licensing solutions.
– 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 80 counties around the world ECOVIS ProventusLaw currently considered as the most experienced financial licensing advisor in Lithuania. ECOVIS licensed in Lithuania such big names like deVere and Instarem setting up their European operations centres in Vilnius. ECOVIS ProventusLaw provides all the necessary services for the finance institution 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 business incorporation. After the grant of the license ECOVIS offers accounting, regulatory reporting, audit, compliance and legal services for the operational business.
Knowledge without experience is of little use. Therefore we are proud of having our own valuable experience to share with you.