Retail investment

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Investment services

1. Reception and transmission of orders in relation to one or more financial instruments
2. Investment advice
3. Placing of financial instruments without a firm commitment basis
4. Portfolio management
5. Execution of orders on behalf of clients
6. Dealing on own account
7. Underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis
8. Operation of MTF (multilateral trading facilities)
9. Operation of an OTF (organised trading facility) 

Compare investment service providers: Services

Services/Type of ISPs	Bank*	Financial brokerage firm (Category A)	Financial brokerage firm (Category B)	Financial brokerage firm (Category C)	Investment adviser
Reception and transmission of orders in relation to one or more financial instruments
Investment advice
Placing of financial instruments without a firm commitment basis					-
Portfolio management					-
Operation of an OTF (organised trading facility)					-
Execution of orders on behalf of clients				-	-
Dealing on own account			-	-	-
Underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis			-	-	-
Operation of MTF (multilateral trading facilities)			-	-	-
Ancillary: safekeeping and administration of financial instruments for client accounts				-	-

* A bank is a credit institution that provides two core services – accepts deposits or other repayable funds and grants credits. Every business model that does not fall under the traditional concept of a credit institution is evaluated case-by-case, thus an applicant should provide solid justification in order to be granted a banking licence.

Compare investment service providers: Main requirements 

Requirements/Type of PSPs	Bank	Financial brokerage firm (Category A)	Financial brokerage firm (Category B)	Financial brokerage firm (Category C)	Investment adviser
Capital (own funds)	EUR 5,000,000	EUR 730,000	EUR 125,000	EUR 50,000	Insurance requirement
Licence fee	EUR 4,157	EUR 947	EUR 947	EUR 947	EUR 574
Supervision fee (max)	0.0153% of assets per year	0.27% of assets per year	0.27% of assets per year	0.27% of assets per year	Up to EUR 391 per year
Resolution fee (max)	0.0043% of assets per year	0.075% of income per year	N/A	N/A	N/A
Managers and compulsory positions	CEO, management board, supervisory board*, internal audit officer, specialised unit for investment services, other key function holders	CEO, management board*, compliance officer, internal audit officer, other key function holders	Same as for category A	Same as for category A	Same as for category A
Level of prudential requirements	High (exhaustive list of internal rules, specifications, etc. to be provided to obtain authorisation). Assessment is done in cooperation with the ECB	Medium (exhaustive list of internal rules, specifications, etc. to be provided to obtain authorisation)	Medium (exhaustive list of internal rules, specifications, etc. to be provided to obtain authorisation)	Medium (exhaustive list of internal rules, specifications, etc. to be provided to obtain authorisation)	Low (simplified template, short list of internal rules and documents to be provided to obtain authorisation)
Level of business conduct requirements	All financial market participants providing investment services are subject to the same EU and national requirements
Assessment period	Up to 6 months (can be extended to 12 months)	Up to 6 months (can be extended)	Up to 6 months (can be extended)	Up to 6 months (can be extended)	Up to 6 months (can be extended)
How to obtain a licence	Click here	Click here			Click here
Licence is valid across the EU					-

* The supervisory board (SB) and the management board (MB) must have at least 3 members. The CEO and the members of the MB may not be members of the SB. The CEO may be a member of the MB. More than half of members of the SB are not allowed to enter into an employment relationships with the company. Managers must be of good repute and possess the qualification and experience necessary to properly perform their duties.

Authorisation process

1. Newcomer (pre-application) stage: pre-application meetings and consultations with Bank of Lithuania experts on whether their future plans are in line with legislative requirements, discussion on the submitted documents and their contents.
2. Submission of an application: within 5 business days, the Bank of Lithuania checks whether all necessary documents have been submitted and, where no formal deficiencies are identified, accepts the application for consideration.
3. Assessment of an application: within 1–2 months of the date of receipt of the application, the Bank of Lithuania may ask the applicant to submit additional information or documents. In such case, the time limit for assessment is extended.
4. Decision regarding the issuance of a licence: after the assessment of the submitted documents, the Bank of Lithuania takes a decision regarding the issuance of a licence.

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