Safekeeping and administration of financial instruments
Safekeeping and administering client financial instruments alongside cash and collateral management requires an investment firm licence holding ancillary permissions or a banking licence under MiFID II Annex I, Section B(1). Authorised custodians can passport across the EEA, and must enforce asset segregation, client money protection rules and periodic reconciliations with central depositaries.
Definition
Holding financial instruments for clients and related services such as cash and collateral management, as an ancillary service.
- MiFID II, Annex I, Section B(1): official text
Which licence you need
Licence families that typically permit this activity:
- IF · Cyprus
Cyprus Investment Firm (CIF) authorisation
CySEC
- IF · Czech Republic
Investment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)
CNB
- IF · Estonia
Authorisation as an investment firm
FI
- IF · Germany
Investment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)
BaFin
- 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 · Malta
Investment services licence (Category 1, 2, or 3)
MFSA
- 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 · Slovakia
Investment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)
NBS
- IF · Spain
Sociedad de Valores y Agencia de Valores (SV / AV) investment firm licence
CNMV
Where it can be licensed
Frequently asked questions
Can a standalone firm obtain a licence solely for safekeeping financial instruments?
Under MiFID II, safekeeping is classified as an ancillary service (Section B). An investment firm cannot be authorised exclusively for safekeeping; it must hold authorisation for at least one core investment service, such as order execution or portfolio management.
What asset segregation standards must financial custodians observe?
Custodians must keep internal books and accounts that clearly distinguish client holdings from proprietary assets. They must ensure that external sub-custody and central securities depository accounts identify client ownership to protect securities from creditor claims during liquidation.
Sources
- MiFID II Annex I, Section B(1) · retrieved 2026-09-24
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