If a person wishes to provide investment services and ancillary investment services, they must be informed of the following:
An Investment firm is a private limited company whose permanent activity is to provide investment services to third parties or to perform investment activities on a professional basis. Only investment firms may use the word “investment firm” or its derivatives or foreign language equivalents in their business names.
For operating as an investment firm, an activity license is required. The license is granted by Financial Supervision Authority. The activity license is granted for unspecified term and it is not transferable to another person.
To receive the license for the provision of investment services, the applicant (i.e. members of the management board of the company) must send all the required documents and information to the Financial Supervision Authority. The required information includes, but is not restricted to, information of the applicants, list of shareholders with information about them and applicant’s three-year business plan. The Financial Supervision Authority shall make a decision to issue or refuse to issue an activity license within two months after receipt of all the necessary documents and information.
Furthermore, there are additional requirements for a person to be appointed or elected to the management board. Only persons who have the education, experience and professional qualifications necessary to manage an investment firm and who have an impeccable reputation may be elected or appointed managers of investment firms.