Investment advice
A personal recommendation to a client about a transaction in a financial instrument needs an investment firm licence or a banking licence under MiFID II Annex I, Section A(5). The firm has to label each recommendation independent or non-independent, and follow strict suitability and disclosure rules either way. The licence carries an EEA passport.
Definition
Giving personal recommendations to a client about one or more transactions in financial instruments.
- MiFID II, Annex I, Section A(5): official text
Which licence you need
Licence families that typically permit this activity:
- IF · Abu Dhabi Global Market (ADGM)
Investment firm licence
Financial Services Permission for Advising on Investments or Arranging Deals in Investments (Category 4)FSRA
- IF · Australia
Australian financial services licence (AFSL)
ASIC
- IF · Bermuda
Investment Business Licence
Investment Business Licence (standard licence, under the Investment Business Act 2003)BMA
- IF · Cayman Islands
Securities Investment Business Licence / Registered Person
CIMA
- IF · Cyprus
Cyprus Investment Firm (CIF) authorisation
CySEC
- IF · Czech Republic
Investment Firm licence
CNB
- IF · Dubai International Financial Centre (DIFC)
Investment firm licence
Financial Services Permission for Advising on Financial Products or Arranging Deals in Investments (Category 4)DFSA
- IF · Estonia
Authorisation as an investment firm
FI
- IF · France
Financial investment adviser status
AMF
- IF · Germany
Investment firm licence
BaFin
- IF · Hong Kong
Type 4 Licence for Advising on Securities
SFC
- IF · Hong Kong
Type 6 Licence for Advising on Corporate Finance
SFC
- IF · Ireland
Investment Firm Authorisation (MiFID II)
CBI
- IF · Italy
Investment firm licence (SIM)
CONSOB
- IF · Latvia
Investment firm licence
LB
- IF · Lithuania
Financial brokerage firm licence
LB
- IF · Luxembourg
Investment firm authorisation
CSSF
- IF · Malaysia (Labuan)
Securities Licensee licence
Securities Licensee licence (dealing in / advising on securities)Labuan FSA
- IF · Malta
Investment services licence (Category 1, 2, or 3)
MFSA
- IF · Mauritius
Investment Adviser Licence
FSC
- IF · Netherlands
Investment firm licence
Investment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID IIAFM
- IF · Poland
Brokerage House licence (dom maklerski)
KNF
- IF · Seychelles
Securities Dealer's Licence
FSA
- IF · Singapore
Capital Markets Services (CMS) Licence
MAS
- IF · Slovakia
Investment firm licence
NBS
- IF · South Africa
Financial Services Provider licence - Category I
Financial Services Provider licence - Category I (advice and/or intermediary services, non-discretionary, incl. crypto assets)FSCA
- IF · South Africa
Financial Services Provider licence - Category II (discretionary FSP)
FSCA
- IF · Spain
AV) investment firm licence
CNMV
- IF · Spain
Empresa de Asesoramiento Financiero (EAF) licence
CNMV
- IF · Switzerland
Securities firm licence
FINMA
- IF · United Kingdom
MIFIDPRU Investment Firm Authorisation (Part 4A FSMA)
FCA
Where it can be licensed
Frequently asked questions
What distinguishes independent investment advice from non-independent advice under MiFID II?
An independent adviser has to assess a broad range of instruments from different providers, and cannot keep third-party commissions or inducements. A non-independent adviser can recommend proprietary products, or accept permitted broker inducements, as long as the conflict is disclosed.
What is required before issuing a personalised investment recommendation?
The adviser runs a formal suitability assessment covering the client's financial standing, risk appetite and investment knowledge. A written suitability report then has to explain why that specific recommendation fits the client's long-term financial goals.
Sources
- MiFID II Annex I, Section A(5) · retrieved 2026-09-24
Planning investment advice? Get the licence right first
Tell us your model and target markets. We check which licence it needs, and whether a narrower one will do, before you spend on an application.
A free preliminary assessment: we check your business model against the licence before you spend on an application. We handle this licence and any other fintech licence, including jurisdictions the Atlas does not cover yet.