# Investment advice Source page: https://protegra.io/licensing/activities/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](https://eur-lex.europa.eu/eli/dir/2014/65/oj) ## Which licence you need Licence families that typically permit this activity: - [Investment firm / broker-dealer](https://protegra.io/licensing/licences/investment-firm/) - [Bank / credit institution](https://protegra.io/licensing/licences/bank/) - [IF · Abu Dhabi Global Market (ADGM)Financial Services Permission for Advising on Investments or Arranging Deals in Investments (Category 4)FSRA](https://protegra.io/licensing/licences/investment-firm/adgm-cat4/) - [IF · AustraliaAustralian financial services licence (AFSL)ASIC](https://protegra.io/licensing/licences/investment-firm/australia/) - [IF · BermudaInvestment Business Licence (standard licence, under the Investment Business Act 2003)BMA](https://protegra.io/licensing/licences/investment-firm/bermuda/) - [IF · Cayman IslandsSecurities Investment Business Licence / Registered PersonCIMA](https://protegra.io/licensing/licences/investment-firm/cayman-islands/) - [IF · CyprusCyprus Investment Firm (CIF) authorisationCySEC](https://protegra.io/licensing/licences/investment-firm/cyprus-cif/) - [IF · Czech RepublicInvestment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)CNB](https://protegra.io/licensing/licences/investment-firm/czech-republic/) - [IF · Dubai International Financial Centre (DIFC)Financial Services Permission for Advising on Financial Products or Arranging Deals in Investments (Category 4)DFSA](https://protegra.io/licensing/licences/investment-firm/difc-cat4/) - [IF · EstoniaAuthorisation as an investment firmFI](https://protegra.io/licensing/licences/investment-firm/estonia/) - [IF · FranceConseiller en investissements financiers (CIF) / Financial investment adviser statusAMF](https://protegra.io/licensing/licences/investment-firm/france-cif/) - [IF · GermanyInvestment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)BaFin](https://protegra.io/licensing/licences/investment-firm/germany/) - [IF · Hong KongType 4 Licence for Advising on SecuritiesSFC](https://protegra.io/licensing/licences/investment-firm/hong-kong-type4/) - [IF · Hong KongType 6 Licence for Advising on Corporate FinanceSFC](https://protegra.io/licensing/licences/investment-firm/hong-kong-type6/) - [IF · IrelandInvestment Business Firm Authorisation (Section 10 IIA 1995)CBI](https://protegra.io/licensing/licences/investment-firm/ireland-iia/) - [IF · IrelandInvestment Firm Authorisation (MiFID II)CBI](https://protegra.io/licensing/licences/investment-firm/ireland/) - [IF · ItalySocietà di Intermediazione Mobiliare (SIM) investment firm licenceCONSOB](https://protegra.io/licensing/licences/investment-firm/italy-sim/) - [IF · LatviaInvestment firm licenceLB](https://protegra.io/licensing/licences/investment-firm/latvia/) - [IF · LithuaniaFinancial brokerage firm licenceLB](https://protegra.io/licensing/licences/investment-firm/lithuania/) - [IF · LuxembourgInvestment firm authorisationCSSF](https://protegra.io/licensing/licences/investment-firm/luxembourg/) - [IF · Malaysia (Labuan)Securities Licensee licence (dealing in / advising on securities)Labuan FSA](https://protegra.io/licensing/licences/investment-firm/labuan-labuan/) - [IF · MaltaInvestment services licence (Category 1, 2, or 3)MFSA](https://protegra.io/licensing/licences/investment-firm/malta/) - [IF · MauritiusInvestment Adviser LicenceFSC](https://protegra.io/licensing/licences/investment-firm/mauritius-investment-adviser/) - [IF · NetherlandsInvestment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID IIAFM](https://protegra.io/licensing/licences/investment-firm/netherlands/) - [IF · PolandBrokerage House licence (dom maklerski)KNF](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/) - [IF · SeychellesSecurities Dealer's Licence (full or restricted)FSA](https://protegra.io/licensing/licences/investment-firm/seychelles/) - [IF · SingaporeCapital Markets Services (CMS) LicenceMAS](https://protegra.io/licensing/licences/investment-firm/singapore-cms/) - [IF · SlovakiaInvestment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)NBS](https://protegra.io/licensing/licences/investment-firm/slovakia/) - [IF · South AfricaFinancial Services Provider licence - Category I (advice and/or intermediary services, non-discretionary, incl. crypto assets)FSCA](https://protegra.io/licensing/licences/investment-firm/south-africa-fsp-cat1/) - [IF · South AfricaFinancial Services Provider licence - Category II (discretionary FSP)FSCA](https://protegra.io/licensing/licences/investment-firm/south-africa-fsp-cat2/) - [IF · SpainSociedad de Valores y Agencia de Valores (SV / AV) investment firm licenceCNMV](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/) - [IF · SpainEmpresa de Asesoramiento Financiero (EAF) licenceCNMV](https://protegra.io/licensing/licences/investment-firm/spain-eaf/) - [IF · SwitzerlandSecurities firm licence (Wertpapierhaus-Bewilligung nach Art. 41 FINIG)FINMA](https://protegra.io/licensing/licences/investment-firm/switzerland/) - [IF · United KingdomMIFIDPRU Investment Firm Authorisation (Part 4A FSMA)FCA](https://protegra.io/licensing/licences/investment-firm/united-kingdom/) ## Where it can be licensed | | EU/EEA passport | Domestic | | --- | --- | --- | | [Abu Dhabi Global Market (ADGM): Financial Services Permission for Advising on Investments or Arranging Deals in Investments (Category 4)](https://protegra.io/licensing/licences/investment-firm/adgm-cat4/) | | ✓ | | [Australia: Australian financial services licence (AFSL)](https://protegra.io/licensing/licences/investment-firm/australia/) | | ✓ | | [Bermuda: Investment Business Licence (standard licence, under the Investment Business Act 2003)](https://protegra.io/licensing/licences/investment-firm/bermuda/) | | ✓ | | [Cayman Islands: Securities Investment Business Licence / Registered Person](https://protegra.io/licensing/licences/investment-firm/cayman-islands/) | | ✓ | | [Cyprus: Cyprus Investment Firm (CIF) authorisation](https://protegra.io/licensing/licences/investment-firm/cyprus-cif/) | ✓ | | | [Czech Republic: Investment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)](https://protegra.io/licensing/licences/investment-firm/czech-republic/) | ✓ | | | [Dubai International Financial Centre (DIFC): Financial Services Permission for Advising on Financial Products or Arranging Deals in Investments (Category 4)](https://protegra.io/licensing/licences/investment-firm/difc-cat4/) | | ✓ | | [Estonia: Authorisation as an investment firm](https://protegra.io/licensing/licences/investment-firm/estonia/) | ✓ | | | [France: Conseiller en investissements financiers (CIF) / Financial investment adviser status](https://protegra.io/licensing/licences/investment-firm/france-cif/) | ✓ | | | [Germany: Investment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)](https://protegra.io/licensing/licences/investment-firm/germany/) | ✓ | | | [Hong Kong: Type 4 Licence for Advising on Securities](https://protegra.io/licensing/licences/investment-firm/hong-kong-type4/) | | ✓ | | [Hong Kong: Type 6 Licence for Advising on Corporate Finance](https://protegra.io/licensing/licences/investment-firm/hong-kong-type6/) | | ✓ | | [Ireland: Investment Business Firm Authorisation (Section 10 IIA 1995)](https://protegra.io/licensing/licences/investment-firm/ireland-iia/) | ✓ | | | [Ireland: Investment Firm Authorisation (MiFID II)](https://protegra.io/licensing/licences/investment-firm/ireland/) | ✓ | | | [Italy: Società di Intermediazione Mobiliare (SIM) investment firm licence](https://protegra.io/licensing/licences/investment-firm/italy-sim/) | ✓ | | | [Latvia: Investment firm licence](https://protegra.io/licensing/licences/investment-firm/latvia/) | ✓ | | | [Lithuania: Financial brokerage firm licence](https://protegra.io/licensing/licences/investment-firm/lithuania/) | ✓ | | | [Luxembourg: Investment firm authorisation](https://protegra.io/licensing/licences/investment-firm/luxembourg/) | ✓ | | | [Malaysia (Labuan): Securities Licensee licence (dealing in / advising on securities)](https://protegra.io/licensing/licences/investment-firm/labuan-labuan/) | | ✓ | | [Malta: Investment services licence (Category 1, 2, or 3)](https://protegra.io/licensing/licences/investment-firm/malta/) | ✓ | | | [Mauritius: Investment Adviser Licence](https://protegra.io/licensing/licences/investment-firm/mauritius-investment-adviser/) | | ✓ | | [Netherlands: Investment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID II](https://protegra.io/licensing/licences/investment-firm/netherlands/) | ✓ | | | [Poland: Brokerage House licence (dom maklerski)](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/) | ✓ | | | [Seychelles: Securities Dealer's Licence (full or restricted)](https://protegra.io/licensing/licences/investment-firm/seychelles/) | | ✓ | | [Singapore: Capital Markets Services (CMS) Licence](https://protegra.io/licensing/licences/investment-firm/singapore-cms/) | | ✓ | | [Slovakia: Investment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)](https://protegra.io/licensing/licences/investment-firm/slovakia/) | ✓ | | | [South Africa: Financial Services Provider licence - Category I (advice and/or intermediary services, non-discretionary, incl. crypto assets)](https://protegra.io/licensing/licences/investment-firm/south-africa-fsp-cat1/) | | ✓ | | [South Africa: Financial Services Provider licence - Category II (discretionary FSP)](https://protegra.io/licensing/licences/investment-firm/south-africa-fsp-cat2/) | | ✓ | | [Spain: Sociedad de Valores y Agencia de Valores (SV / AV) investment firm licence](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/) | ✓ | | | [Spain: Empresa de Asesoramiento Financiero (EAF) licence](https://protegra.io/licensing/licences/investment-firm/spain-eaf/) | ✓ | | | [Switzerland: Securities firm licence (Wertpapierhaus-Bewilligung nach Art. 41 FINIG)](https://protegra.io/licensing/licences/investment-firm/switzerland/) | | ✓ | | [United Kingdom: MIFIDPRU Investment Firm Authorisation (Part 4A FSMA)](https://protegra.io/licensing/licences/investment-firm/united-kingdom/) | | ✓ | ## 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 1. [MiFID II Annex I, Section A(5)](https://eur-lex.europa.eu/eli/dir/2014/65/oj): retrieved 2026-09-24 Last verified 2026-09-24 · Author: Danil Marmysh · Reviewed by Anastasia Sidorenkova · © Protegra. Data: CC BY 4.0, cite "Protegra Licensing Atlas". Not legal advice.