# Safekeeping and administration of financial instruments

Source page: https://protegra.io/licensing/activities/safekeeping-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](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 · 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 · EstoniaAuthorisation as an investment firmFI](https://protegra.io/licensing/licences/investment-firm/estonia/)
- [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/)
- [IF · PolandBrokerage House licence (dom maklerski)KNF](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/)
- [IF · SlovakiaInvestment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)NBS](https://protegra.io/licensing/licences/investment-firm/slovakia/)
- [IF · SpainSociedad de Valores y Agencia de Valores (SV / AV) investment firm licenceCNMV](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/)

## Where it can be licensed

| | EU/EEA passport | Domestic |
| --- | --- | --- |
| [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/) | ✓ | |
| [Estonia: Authorisation as an investment firm](https://protegra.io/licensing/licences/investment-firm/estonia/) | ✓ | |
| [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: Brokerage House licence (dom maklerski)](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/) | ✓ | |
| [Slovakia: Investment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)](https://protegra.io/licensing/licences/investment-firm/slovakia/) | ✓ | |
| [Spain: Sociedad de Valores y Agencia de Valores (SV / AV) investment firm licence](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/) | ✓ | |

## 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

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