# Portfolio management

Source page: https://protegra.io/licensing/activities/portfolio-management/

Managing client investment portfolios on a discretionary basis under an individual mandate requires an investment firm licence, a fund manager licence or a banking licence under MiFID II Annex I, Section A(4). Authorised discretionary wealth managers can passport across the EEA, and must execute comprehensive client suitability profiles, investment mandates and regular portfolio reporting.

## Definition

Managing client portfolios that include financial instruments on a discretionary, client-by-client basis.

- MiFID II, Annex I, Section A(4): [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/)
- [Fund manager](https://protegra.io/licensing/licences/fund-manager/)
- [Bank / credit institution](https://protegra.io/licensing/licences/bank/)

- [FM · Abu Dhabi Global Market (ADGM)Financial Services Permission for Managing a Collective Investment Fund (Category 3C)FSRA](https://protegra.io/licensing/licences/fund-manager/adgm/)
- [IF · AustraliaAustralian financial services licence (AFSL)ASIC](https://protegra.io/licensing/licences/investment-firm/australia/)
- [FM · BermudaFund Administrator Licence (Part III, Investment Funds Act 2006)BMA](https://protegra.io/licensing/licences/fund-manager/bermuda/)
- [IF · BermudaInvestment Business Licence (standard licence, under the Investment Business Act 2003)BMA](https://protegra.io/licensing/licences/investment-firm/bermuda/)
- [FM · British Virgin IslandsBVI mutual fund recognition (private/professional fund), registration (public fund) or approval (incubator/approved fund) - funds are recognised/registered/approved, not 'licensed'BVI FSC](https://protegra.io/licensing/licences/fund-manager/bvi/)
- [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/)
- [FM · Czech RepublicInvestment Company / Fund Manager licence (povolení k činnosti investiční společnosti)CNB](https://protegra.io/licensing/licences/fund-manager/czech-republic/)
- [IF · Czech RepublicInvestment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)CNB](https://protegra.io/licensing/licences/investment-firm/czech-republic/)
- [FM · Dubai International Financial Centre (DIFC)Financial Services Permission for Managing a Collective Investment Fund (Category 3C)DFSA](https://protegra.io/licensing/licences/fund-manager/difc/)
- [FM · EstoniaOperating licence as a fund management companyFI](https://protegra.io/licensing/licences/fund-manager/estonia/)
- [IF · EstoniaAuthorisation as an investment firmFI](https://protegra.io/licensing/licences/investment-firm/estonia/)
- [FM · FranceSociété de gestion de portefeuille (SGP) / Portfolio management company authorisationAMF](https://protegra.io/licensing/licences/fund-manager/france-sgp/)
- [FM · GermanyInvestment management company licence (Erlaubnis als Kapitalverwaltungsgesellschaft nach § 20 KAGB)BaFin](https://protegra.io/licensing/licences/fund-manager/germany/)
- [IF · GermanyInvestment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)BaFin](https://protegra.io/licensing/licences/investment-firm/germany/)
- [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 · MaltaInvestment services licence (Category 1, 2, or 3)MFSA](https://protegra.io/licensing/licences/investment-firm/malta/)
- [IF · NetherlandsInvestment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID IIAFM](https://protegra.io/licensing/licences/investment-firm/netherlands/)
- [FM · PolandInvestment Fund Company licence (towarzystwo funduszy inwestycyjnych - TFI)KNF](https://protegra.io/licensing/licences/fund-manager/poland-tfi/)
- [IF · PolandBrokerage House licence (dom maklerski)KNF](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/)
- [FM · SeychellesFund Administrator's Licence (and Restricted Fund Administrator's Licence) under the Mutual Fund and Hedge Fund Act 2008FSA](https://protegra.io/licensing/licences/fund-manager/seychelles/)
- [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 II (discretionary FSP)FSCA](https://protegra.io/licensing/licences/investment-firm/south-africa-fsp-cat2/)
- [FM · SpainSociedad Gestora de Instituciones de Inversión Colectiva (SGIIC) licenceCNMV](https://protegra.io/licensing/licences/fund-manager/spain-sgiic/)
- [IF · SpainSociedad de Valores y Agencia de Valores (SV / AV) investment firm licenceCNMV](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/)
- [FM · SwitzerlandFund management company licence (Fondsleitung nach Art. 32 FINIG)FINMA](https://protegra.io/licensing/licences/fund-manager/switzerland-fund-management/)
- [FM · SwitzerlandManager of collective assets licence (Verwalter von Kollektivvermögen nach Art. 24 FINIG)FINMA](https://protegra.io/licensing/licences/fund-manager/switzerland-manager/)
- [IF · SwitzerlandPortfolio manager licence (Vermögensverwalter nach Art. 17 FINIG)FINMA](https://protegra.io/licensing/licences/investment-firm/switzerland-portfolio-manager/)
- [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 Managing a Collective Investment Fund (Category 3C)](https://protegra.io/licensing/licences/fund-manager/adgm/) | | ✓ |
| [Australia: Australian financial services licence (AFSL)](https://protegra.io/licensing/licences/investment-firm/australia/) | | ✓ |
| [Bermuda: Fund Administrator Licence (Part III, Investment Funds Act 2006)](https://protegra.io/licensing/licences/fund-manager/bermuda/) | | ✓ |
| [Bermuda: Investment Business Licence (standard licence, under the Investment Business Act 2003)](https://protegra.io/licensing/licences/investment-firm/bermuda/) | | ✓ |
| [British Virgin Islands: BVI mutual fund recognition (private/professional fund), registration (public fund) or approval (incubator/approved fund) - funds are recognised/registered/approved, not 'licensed'](https://protegra.io/licensing/licences/fund-manager/bvi/) | | ✓ |
| [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 Company / Fund Manager licence (povolení k činnosti investiční společnosti)](https://protegra.io/licensing/licences/fund-manager/czech-republic/) | ✓ | |
| [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 Managing a Collective Investment Fund (Category 3C)](https://protegra.io/licensing/licences/fund-manager/difc/) | | ✓ |
| [Estonia: Operating licence as a fund management company](https://protegra.io/licensing/licences/fund-manager/estonia/) | ✓ | |
| [Estonia: Authorisation as an investment firm](https://protegra.io/licensing/licences/investment-firm/estonia/) | ✓ | |
| [France: Société de gestion de portefeuille (SGP) / Portfolio management company authorisation](https://protegra.io/licensing/licences/fund-manager/france-sgp/) | ✓ | |
| [Germany: Investment management company licence (Erlaubnis als Kapitalverwaltungsgesellschaft nach § 20 KAGB)](https://protegra.io/licensing/licences/fund-manager/germany/) | ✓ | |
| [Germany: Investment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)](https://protegra.io/licensing/licences/investment-firm/germany/) | ✓ | |
| [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/) | ✓ | |
| [Malta: Investment services licence (Category 1, 2, or 3)](https://protegra.io/licensing/licences/investment-firm/malta/) | ✓ | |
| [Netherlands: Investment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID II](https://protegra.io/licensing/licences/investment-firm/netherlands/) | ✓ | |
| [Poland: Investment Fund Company licence (towarzystwo funduszy inwestycyjnych - TFI)](https://protegra.io/licensing/licences/fund-manager/poland-tfi/) | ✓ | |
| [Poland: Brokerage House licence (dom maklerski)](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/) | ✓ | |
| [Seychelles: Fund Administrator's Licence (and Restricted Fund Administrator's Licence) under the Mutual Fund and Hedge Fund Act 2008](https://protegra.io/licensing/licences/fund-manager/seychelles/) | | ✓ |
| [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 II (discretionary FSP)](https://protegra.io/licensing/licences/investment-firm/south-africa-fsp-cat2/) | | ✓ |
| [Spain: Sociedad Gestora de Instituciones de Inversión Colectiva (SGIIC) licence](https://protegra.io/licensing/licences/fund-manager/spain-sgiic/) | ✓ | |
| [Spain: Sociedad de Valores y Agencia de Valores (SV / AV) investment firm licence](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/) | ✓ | |
| [Switzerland: Fund management company licence (Fondsleitung nach Art. 32 FINIG)](https://protegra.io/licensing/licences/fund-manager/switzerland-fund-management/) | | ✓ |
| [Switzerland: Manager of collective assets licence (Verwalter von Kollektivvermögen nach Art. 24 FINIG)](https://protegra.io/licensing/licences/fund-manager/switzerland-manager/) | | ✓ |
| [Switzerland: Portfolio manager licence (Vermögensverwalter nach Art. 17 FINIG)](https://protegra.io/licensing/licences/investment-firm/switzerland-portfolio-manager/) | | ✓ |
| [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

### How does discretionary portfolio management differ from collective fund management?

Discretionary portfolio management operates on an individual client basis, where assets remain segregated in the client's own custodial account under a specific mandate. Fund managers manage pooled collective investment vehicles where investors hold units or shares in a single fund entity.

### What suitability obligations govern discretionary portfolio managers?

Before establishing a discretionary portfolio, the manager must assess the client's financial position, investment objectives, knowledge, experience and capacity to absorb losses. The portfolio allocation must remain consistent with the agreed investment strategy and risk profile.

## Sources

1. [MiFID II Annex I, Section A(4)](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.