Bank of Lithuania

Financial brokerage firms are subject to the following prudential requirements:

  • Permanent minimum capital requirement:

Financial brokerage firms of category A – EUR 750,000. Firms can provide investment services or carry out any activities referred to in point 26 of Article 3 of the Law on financial markets.

Financial brokerage firms of category B – EUR 150,000. Firms can provide investment services that are referred to in points 1,2,4,5,7,8 and Article 3 of the Law on financial markets and have the right to safeguard clients’ assets and financial instruments. 

Financial brokerage firms of category C – EUR 75,000. Firms can provide investment services that are referred to in points 1,2,4,5 and 7 of Article 26 of the Law on financial markets.

  • Own funds requirements:

Class 1 financial brokerage companies (investment firms classified as credit institutions) are subject to Regulation (EU) No 2013/575

Class 2 financial brokerage companies (other investment firms) shall have own funds that are higher of the following:

  • Fixed overheads requirement calculated according to Article 13 of Regulation (EU) 2019/2033
  • Permanent minimum capital requirement
  • K-factors capital requirement calculated according to Article 15 of Regulation (EU) 2019/2033

Class 3 financial brokerage companies (small and non‐interconnected investment firms) shall have own funds that are higher of the following:

  • Fixed overheads requirement calculated according to Article 13 of Regulation (EU) 2019/2033
  • Permanent minimum capital requirement

 

  • Liquidity requirement:

Investment firms shall hold a number of liquid assets equivalent to at least one-third of the fixed overhead requirement calculated in accordance with Article 13(1) of Regulation (EU) 2019/2033

  • Other requirements:

Investment firms are subject to requirements set out in Regulation (EU) 2019/2033 and the Law on financial markets based on their class category.

 

Last update: 21-11-2022