Investment advice
Providing personal recommendations to clients regarding transactions in financial instruments requires an investment firm licence or a banking licence under MiFID II Annex I, Section A(5). Authorised advisory firms benefit from EEA passporting rights, and must classify recommendations as independent or non-independent while adhering to strict suitability and disclosure rules.
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)
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 (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 (povolení k činnosti obchodníka s cennými papíry - OCP)
CNB
- IF · Dubai International Financial Centre (DIFC)
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
Conseiller en investissements financiers (CIF) / Financial investment adviser status
AMF
- IF · Germany
Investment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)
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 Business Firm Authorisation (Section 10 IIA 1995)
CBI
- IF · Ireland
Investment Firm Authorisation (MiFID II)
CBI
- IF · Italy
Società di Intermediazione Mobiliare (SIM) investment firm licence
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 (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 (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID II
AFM
- IF · Poland
Brokerage House licence (dom maklerski)
KNF
- IF · Seychelles
Securities Dealer's Licence (full or restricted)
FSA
- IF · Singapore
Capital Markets Services (CMS) Licence
MAS
- IF · Slovakia
Investment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)
NBS
- IF · South Africa
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
Sociedad de Valores y Agencia de Valores (SV / AV) investment firm licence
CNMV
- IF · Spain
Empresa de Asesoramiento Financiero (EAF) licence
CNMV
- IF · Switzerland
Securities firm licence (Wertpapierhaus-Bewilligung nach Art. 41 FINIG)
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?
Independent advisers must assess a broad range of market instruments from diverse providers and cannot accept or retain third-party commissions or inducements. Non-independent advisers may recommend proprietary products or receive permitted broker inducements, provided conflicts are disclosed.
What is required before issuing a personalised investment recommendation?
Advisers must complete a formal suitability assessment evaluating the client's financial standing, risk appetite and investment knowledge. They must provide a written suitability report explaining why the specific recommendation aligns with the client's long-term financial goals.
Sources
- MiFID II Annex I, Section A(5) · retrieved 2026-09-24
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