Direct answer
If you receive, transmit or execute orders, deal on own account, manage portfolios or provide investment advice on financial instruments, you likely need a MiFID II investment firm authorisation. Authorisation in one Member State passports across the EEA, but capital, governance and conduct requirements scale with the services and instruments involved.
Who this applies to
- Brokerage and trading platforms
- Portfolio managers and robo-advisers
- Firms dealing on own account or operating trading venues
- Wealth and investment fintechs entering the EU
Regulated activities
- Reception and transmission of orders
- Execution of orders on behalf of clients
- Portfolio management and investment advice
- Dealing on own account and underwriting
Routes to market
Own MiFID authorisation
Full investment-firm licence with EEA passporting and tiered capital by activity.
Tied agent
Operate under an authorised firm as a tied agent for a narrower scope.
Acquisition
Acquire an existing investment firm, subject to qualifying-holding approval.
Capital and substance
- Initial capital €75k, €150k or €750k depending on permitted activities (IFR/IFD).
- Governance, conduct of business and best-execution frameworks.
- Local senior management and effective decision-making in the EU.
Authorisation stages
- 1
Classification
Determine the MiFID services and instrument scope.
- 2
Pre-application
Prepare capital, governance and conduct documentation.
- 3
Submission and review
File with the competent authority and respond to questions.
- 4
Authorisation and passporting
Notify host states and complete operational readiness.
Where applications commonly fail
- Misclassifying activities and instrument scope
- Under-resourced best-execution and conduct frameworks
- Inadequate capital planning under IFR/IFD
Frequently asked questions
Yes, an authorised investment firm can provide services cross-border or via branches across the EEA through passporting notifications.
Official regulatory sources
Verified external references. Always confirm against the current official text.
RenIQ provides regulatory strategy and programme delivery. It is not a law firm and this content is illustrative guidance, not legal advice. Regime details are summaries that may change, so always verify against current rules and official sources, and take formal advice before acting.