Financial services licensing in Europe. Finance institution license in European union (EU)
Strict legal regulation is a distinctive feature of the Financial Services sector in all countries. FinTech companies, banks, electronic money institutions, payment service providers, insurance companies, investment managers and investment funds, forex dealers, securities brokers and other finance institutions in Europe are subject to higher regulation and risk management requirements. Moreover, this sector is highly diversified and covers lots of instruments and services as well as various business models. Licensing of a finance institution in one of the member states within the European Union and European Economic Area opens up business opportunities to provide services in all other states, enjoy benefits of a Common Market of 500 million wealthy consumers and over 20 million businesses. ECOVIS specializes in the licensing of finance institutions and Fintech’s providing financial services in Common European Financial Market.
ECOVIS – the most experienced financial services licensing advisor
ECOVIS ProventusLaw currently is the most experienced financial institution licensing and compliance advisor. Our experience goes back to the incorporation of the first modern NSEL 30 Index fund in Lithuania 15 year ago. A few years later ECOVIS ProventusLaw assisted in licensing a specialised US securities investment fund – ZPR US Small Cap Value Fund for the US-based investment manager ZPR International.
We licensed the European branch of the California based e-payment company Alternative Payments in 2014, servicing over 100 000 websites around the world. Alternative Payments currently holds a Lithuanian license for their pan-European business. We serviced the global financial advisor deVere Group getting a license for their global activities, advised national post operator AB Lietuvos Paštas and the leading mobile telecommunications service provider UAB Omnitel getting their licenses. We mediated the Singapore-based Senjo Group global holding company in 2017, who specialize in payment services and financial technology, with the acquisition of Finolita Unio, which has a payment institution license. Recently, ECOVIS ProventusLaw acquired an electronic money institution licence for Singapore-based Instarem, which operates in more than 50 countries. Currently we service clients from continental Europe, the UK and USA, Canada, China, Hong Kong, Israel, UAE and Singapore. We do not differentiate between experienced international finance institution providing services around the globe and Fintech start-up making their first steps into the European financial market. We welcome everybody and we are ready to assist.
ECOVIS professionals advise governmental working groups improving the regulatory environment for finance institutions in Lithuania and focusing it for pan-European needs. ECOVIS ProventusLaw has established the FINTECH HUB LT association together with 6 Fintech enterprises licensed in Lithuania.
The experience of ECOVIS ProventusLaw on issues of finance law and licensing of financial services was also emphasised by the international legal directory “Legal 500”, which noted that ECOVIS ProventusLaw has a very high competence in the banking sector.
The Guide to the World’s Leading Financial Law Firms IFLR1000 awarded Attorney at Law Inga Karulaitytė in the IFLR1000 law firm rankings for the year 2019 as a Highly Regarded Lawyer in Banking. Received awards from international legal directory is the recognition of ECOVIS ProventusLaw FinTech team exceptional knowledge and expertise in banking, financial services as well as finance institution licensing. Such recognition can be achieved only after precise and independent due diligence carried out by legal directory, long years of successful legal practice and positive client feedback.
ECOVIS INTERNATIONAL– global financial advisor
ECOVIS International is a leading global consulting firm with over 7000 lawyers, tax advisors, auditors and other professionals operating in more than 70 countries. ECOVIS ProventusLaw is the Lithuanian member firm of ECOVIS International.
As an interdisciplinary network of legal, audit and tax professionals, ECOVIS advises on all aspects of finance institution incorporation and licensing process, including preparation of the business plan, tax advice and human resources. Worldwide ECOVIS network with offices in major world economic centres provides clients the possibility to work through their home country ECOVIS office.
Local knowledge in the home country and international expertise of the international network of ECOVIS professionals ensure fast and efficient services for the client. This makes ECOVIS different from other service providers.
The experience by ECOVIS ProventusLaw includes
Incorporation and registration of financial institutionsThe lawyers of ECOVIS ProventusLaw incorporate various payment institutions, e-money, investment management companies and other financial institutions intending to operate both in Lithuania and in the EU. Our lawyers have incorporated various financial institutions ranging from those operating on the Lithuanian market to financial institutions registered and licensed in Lithuania but operating on the financial markets of EU countries.
Payment Institution LicensingPerfect solution for pan-European and global payment processing. Equity capital – from EUR 20 000 to EUR 125 000. Licensing time – up to 3 months.
Electronic Money Institution LicensingWide range of payment services. Payment cards issue. Equity capital – EUR 350 000. Licensing time – up to 3 months.
Specialised Bank/Bank LicensingPrestigious banking license opening wealthy pan-European financial market of 500 million consumers. Specialised Bank capital requirement – EUR 1 mill. Bank – EUR 5 mill. Licensing time – 6 months.
Securities Broker LicensingPan-European financial license opening single European brokerage and investment advisory market of 28 states and 500 million consumers.
Investment Management and Investment Funds LicensingThe lawyers of ECOVIS ProventusLaw draft incorporation documents and represent clients in the formation of various investment funds, investment companies, pension funds, other collective investment undertakings and their management companies. In the formation process, we focus in particular on establishing effective cooperation between an investment fund or a management company and the market regulator, i.e. the Bank of Lithuania.
Crowdfunding LicensingPlatform helping lenders to find businesses that need financing. Permit (license) issue time – 1 month. Equity capital – from EUR 40 000.
Peer to Peer Lending Platform LicensingPeer-to-Peer (P2P) platform helps lenders to find consumers who need financing. Equity capital – EUR 40 000. Permit issue (licensing) time – 1 month.
Consumer Credit Provider LicensingNon-banking vehicle helping consumers find financing. Equity capital – EUR 40 000. Permit issue (licensing) time – 1 month.
Insurance Company LicensingPan-European insurance license opening wealthy European insurance market of 500 million consumers and more than 20 million business. Insurance company equity capital – EUR 1 000 000. Insurance broker equity capital requirement starts from – EUR 15 000.
Licensing Solutions for Blockcahin, Cryptocurrency, Tokens and ICOLicensing of Initial Coin Offerings (ICO) and Token offerings. Electronic Money on Blockchain. Fund transfers fiat currencies/cryptocurrencies. Preparation of ICO documentation.
Business finance and venture capitalECOVIS ProventusLaw represents its clients in drawing funding for operations of companies and for individual business projects. In addition to traditional loans from credit institutions, our clients use other business finance instruments such as issuance and public offering of securities as well as facilities offered by venture capital funds. The law firm has developed a special support programme for small companies (start-ups) operating in the sectors of online payments as well as IT and telecommunications.
Lawyer, attorney at law, partner of the law firm, CIPP/E.
Knowledge without experience is of little use. Therefore we are proud of having our own valuable experience to share with you.