Authorization of EU Investment Firms (IFs)

Secqoia helps you obtain any EU Investment Firm Authorization from the competent authority of your choice, within European Union. Having EU authorization gives you the unparalleled advantage of being able to offer freely cross-border (i.e. within the European Economic Area) investment and ancillary services.

The mere fact of exhibiting that your business is being regulated by the Markets in Financial Instruments Directive 2004/39/EC (known as “MiFID”), as subsequently amended, which provides harmonized legislation for the provision of investment services and activities across the 31 Member States of the European Economic area (the 28 Member States of the EU plus Iceland, Norway and Liechtenstein), offers you prestige, trustworthiness, recognition and an exceptional competitive advantage.

In accordance with Annex I of MiFID, an IF can provide any of the following investment and ancillary services:

Investment services

1. Reception and transmission of orders in relation to one or more financial instruments.
2. Execution of orders on behalf of clients.
3. Dealing on own account.
4. Portfolio management.
5. Investment advice.
6. Underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis.
7. Placing of financial instruments without a firm commitment basis.
8. Operation of a Multilateral Trading Facility (MTF).
9. Operation of an Organized Trading Facility (OTF).

Ancillary Services

1. Safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management.
2. Granting credits or loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the firm granting the credit or loan is involved in the transaction.
3. Advice to undertakings on capital structure, industrial strategy and related matters and advice and services relating to mergers and the purchase of undertakings.
4. Foreign exchange services where these are connected to the provision of investment services.
5. Investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments.
6. Services related to underwriting.
7. Investment services and activities as well as ancillary services of the investment services law related to the underlying of the derivatives allowed by the respective law where these are connected to the provision of investment or ancillary services.

Depending on the choice of investment and ancillary services that you wish to offer to your clients, your company’s business model must be structured accordingly.

Our CPT provides consulting relevant to selecting the appropriate form of a financial group’s presence in the EU (IF, CIF, Investment Branch, Representative Office, or other, depending on your specific business needs).

Secqoia provides complete, readymade solutions, which include the following:

1. Incorporation of a company limited by shares (including all relevant corporate documentation, including but not limited to Memorandum and Articles of Association, Certificate of Registered Office, Certificate of Shareholders, Certificate of Directors and Secretary).
2. Consulting related to the choice of Investment and Ancillary services, based on proposed business model(s).
3. Consulting on structuring a cost-effective organizational structure.
4. Preparation of the “Application File”, which includes, among others:
   • Preparation of a truly customized Internal Operations Manual,
   • Preparation of the Anti-Money Laundering Manual (AML Manual) including all relevant KYC and Client Acceptance Policies and Procedures,
   • Preparation of the relevant Business Plan,
   • Review of the questionnaires of the shareholders, directors, and senior management (“4-eyes”) of the proposed IF,
   • Assistance and guidance in providing necessary documentation and certificates,
   • Completion and Preparation of the application form,
   • Preparation of letter(s) to accompany the application, if necessary, and
   • Submission of the application form to the relevant Competent Authority.
5. Post Application submission follow up and response to communication with the Competent Authority.
6. Assistance in locating qualified executive, non-executive and independent non-executive directors.
7. Assistance in locating and recruiting appropriate personnel.
8. Advise on fees payable to the Competent Authority.
9. Support on inquiries concerning the application process.
10. Registration(s) following the authorization.

European Investment Firms are ideal for FX Brokerage or Market Making Services.

Post-authorization

Secqoia is committed to providing quality post-authorization services, some of them required by MiFID, including but not limited to the following:

Regulatory Compliance

Risk Management

Consulting and Advisory

Specialized Support

Executive Training