Opening of licensable financial structures in the EU

Licensing of the securities market players in the Republic of Latvia (license for investment services) as well as companies providing payment services and issuing electronic money (license for providing payment services and issuing e-money).

Recently the law firm INLAT PLUS has been receiving more and more requests for registration of financial structures, preparation of all necessary documents and complete legal support for obtaining a license for investment services, as well as for payment services and e-money.
Investment brokerage company is a company providing investment services and related services including:

1. acceptance and transfer for execution of orders by investors for transactions in financial instruments;
2. execution of orders by investors for transactions in financial instruments at the expense of investors or third parties;
3. individual management of financial instruments of investors in accordance with an authorisation given by investors;
4. initial allocation of financial instruments where the provider of investment services does not purchase the financial instruments or does not guarantee the purchase thereof;
5. purchase of financial instruments for initial allocation or guaranteeing the purchase of financial instruments not distributed during the initial allocation;
6. performance of transactions with financial instruments on behalf of a credit institution or investment brokerage company;
7. provision of consultations regarding investments in financial instruments;
8. holding of financial instruments;
9. granting of credits or loans to an investor for carrying out transactions in financial instruments where the commercial company granting the credit or loan is involved in the transaction in financial instruments as the other party to the transaction;
10. provision of advice regarding capital structure, industrial strategy and related matters, as well as the provision of advice and services regarding mergers of commercial companies and the acquisition of undertakings;
11. foreign exchange services provided that they are related to the provision of investment services.

A company providing payment services (issuing electronic money) is a company providing the following services: 

1. a service as a result of which cash can be placed on a banking account as well as all necessary operations by the payment service provider to ensure that the payment service user can use the payment account;
2. execution of a payment transaction, including of a direct debit and also one-off direct debit, execution of a payment transaction through a payment card or a similar device, execution of a credit transfer, also of a standing order; 
3. issuing and acquiring of a payment instrument; 
4. transfer of money without an account; 5) e-money remittance.

Investment brokerage companies and companies providing payment services must comply with the requirements of the law of the Republic of Latvia On the market of financial instruments and the law On payment services and electronic money, respectively, the regulatory rules of the Commission on Financial and Capital Markets (FCMC), as well as administrative acts issued in this respect.

Investment companies and companies providing payment services (emitting electronic money) which plan to expand to the EU market can obtain a relevant license in Latvia. Obtaining a Latvian license for the investment services or e-money institution is a good startup for performing activities related to the provision of investment and payment services in the territory of the European Union. Even if you are planning to provide the main amount of services in the EU but outside of Latvia, the Latvian license can be a successful beginning to initiate your expansion plans. All Latvian companies having received a license in Latvia on investment services, payment services and issuing electronic money, on the basis of a relatively simple registration process can start their activities not only in Latvia, but also in other EU countries.

Our law firm offers a full package of services for registration, licensing and post-licensing support of investment brokerage companies as well as companies providing payment services (emitting electronic money) including the following services:

1. Advice on licensing and brokerage activities of investment companies as well as companies providing payment services (emitting electronic money);
2. Full support of the registration procedure of new companies, or making changes to existing companies observing all the requirements of the legislation of the Republic of Latvia in respect of investment companies and companies providing payment services (emitting electronic money), including the payment of equity capital and to the founders (members) and CEO of such companies.
3. Preparation of internal and other documents necessary to obtain a license and perform further activities of investment companies and brokerage companies providing payment services (emitting electronic money).
4. Representation of the client’s interests in the Commission on the Financial and Capital Market and other authorities in respect of obtaining a license, coordination of documents and any other legal issues.
5.  Presentation of all related services to investment companies and brokerage companies providing payment services (emitting electronic money) providing full legal support on the basis of long-term legal service agreement on any issues arising in the normal course of business of the company both in Latvia and abroad, including the provision of the legal address, bookkeeping services, advice on economic issues and taxation, as well as provision of accounting services and audit services, assistance in the recruitment, translation of documents, etc.  

If necessary we can also provide consulting services and full legal support of business activities (establishing, licensing, preparation of documents, purchase and sale) of investment management companies and credit institutions.