Fit
Securities broker or broker-dealer?
“A securities broker acts only on behalf of third parties; a broker-dealer also deals on its own account. That line determines capital and requirements.”
Agencia de Valores: Broker License in Spain
A securities broker (agencia de valores) is the investment firm that acts on behalf of third parties—not on its own account—and may be authorized to hold client money and securities in custody. Capital: €150,000. We help you with regulatory fit, the CNMV application and compliance.
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- Initial capital
- €150,000
- Simplified broker capital
- €75,000
- Broker-dealer capital
- €750,000
- Key regulation
- Royal Decree 813/2023
Services
What you need for a securities broker (agencia de valores)
Six building blocks that make up a coherent, defensible CNMV application to authorize a securities broker that acts on behalf of third parties and may hold client assets in custody.
Assessment
Investment firm regulatory fit
We analyze whether your model fits as a securities broker (€150,000, with custody), a simplified securities broker (€75,000, without custody), a broker-dealer (sociedad de valores), a portfolio management company or an EAF/EAFN, depending on the investment services you will provide.
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LMVRD 813/2023CNMVPerimeter
Application
CNMV authorization application
We prepare the application file: program of activities, fit and proper assessment of directors, corporate structure, capital, internal policies and responses to requests for information, for a solid process.
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Program of activitiesFit and properCapital €150,000
Governance
Structure, roles and internal control
We design a defensible organization: fit and proper directors, plus compliance, risk management and internal audit functions proportionate to the broker’s activity.
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Corporate governanceKey functions
MiFID II
Conduct and investor protection
We implement client classification, suitability and appropriateness tests, pre-contractual information, best execution and conflict-of-interest management in line with MiFID II.
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SuitabilityBest execution
AML/CFT
Anti-money laundering for investment firms
As a financial obliged entity, a securities broker must implement the AML/CFT framework: risk assessment, KYC, monitoring, SEPBLAC representative and training.
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KYCSEPBLAC
DORA
Digital resilience and third parties
We organize outsourcing, SLAs, business continuity and DORA compliance, which applies to investment firms authorized in the EU.
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DORAOutsourcing
Profiles
A different application for each investment project
Brokers executing orders, intermediation platforms, portfolio managers or distributors seeking their own license with custody: each model has its own regulatory fit and requirements.
Custody
With or without custody
“A standard securities broker (€150,000) may hold client money and securities in custody; a simplified one (€75,000) may not. Getting this decision right shapes capital and safeguarding.”
MiFID II
Conduct and investor protection
“Client classification, suitability and appropriateness, information, best execution and conflicts of interest must be designed to withstand an inspection.”
Compliance
AML/CFT and ongoing control
“Authorization is not the end. An investment firm needs operational AML/CFT, internal control, reporting to the CNMV and constant monitoring from day one.”
Why it matters
Why is authorization critical?
Providing investment services without authorization, filing an inconsistent application, or neglecting MiFID II conduct and the safeguarding of client assets can halt your business and expose you to penalties.
The most common mistake: launching an intermediation or order-execution platform without first determining whether the activity requires authorization as an investment firm, and of what type. The confusion surfaces once the product is already built.
The CNMV reviews consistency, not just documents: if the business model, fit and proper, policies, MiFID II conduct, safeguarding and outsourcing do not fit together, the application loses strength and requests for information multiply.
Custody raises the bar: if the broker will hold client money or securities, it must demonstrate safeguarding and segregation of assets; if it does not need custody, the simplified type (€75,000) may be more efficient.
Reserved activity
Immediate cessation
Providing reserved investment services without CNMV authorization can lead to the activity being halted and to sanctioning proceedings.
Penalties
Very serious
The LMV classifies the unauthorized performance of reserved activities as a very serious infringement, with liability for directors.
Commercial risk
Blocked
Markets, depositaries and partners require an active CNMV authorization before you operate: without it, agreements are blocked.
Does your project need a securities broker (agencia de valores)?
Before opening the application, it is worth validating the scope of investment services, deciding whether you need to hold client assets in custody and checking whether the structure can meet the requirements for authorization, MiFID II conduct, safeguarding, AML/CFT and ongoing control.
Frequently asked questions
Securities broker (agencia de valores): common questions
What is an agencia de valores (securities broker)?
An agencia de valores (securities broker) is an investment firm (ESI) that provides investment services exclusively on behalf of third parties: it executes, receives and transmits orders, advises, places or manages portfolios, but does not deal on its own account. It may be authorized to hold client money and securities in custody.
It is subject to authorization, registration and supervision by the CNMV and, as a financial institution, it is an obliged entity for anti-money laundering purposes.
How does it differ from a broker-dealer (sociedad de valores)?
The essential difference is on whose behalf they operate:
- A securities broker operates only on behalf of third parties, without dealing on its own account.
- A broker-dealer (sociedad de valores) may also operate on its own account, taking proprietary positions, with a higher minimum capital (€750,000).
That is why a securities broker has proportionally lower capital and prudential requirements.
What is the minimum capital?
The initial capital of a securities broker is €150,000 (also if it is authorized to operate an MTF/OTF), under the current implementing regulations (Royal Decree 813/2023).
If the broker is not authorized to hold client money or securities (the so-called agencia de valores simplificada, or simplified securities broker), capital drops to €75,000.
Which laws regulate it?
The current framework is Law 6/2023 on Securities Markets and Investment Services (LMV) and its implementing regulation, Royal Decree 813/2023, which repealed the former Royal Decree 217/2008. On top of this come the MiFID II conduct rules and anti-money laundering legislation.
Authorization, registration and supervision are the responsibility of the CNMV.
What services can it provide?
On behalf of third parties, it can provide reception and transmission of orders, execution of orders, investment advice, placing and portfolio management, as well as ancillary services—including safekeeping and administration of financial instruments—within the scope authorized in its program of activities. It cannot deal on its own account.
Can it hold client money and securities in custody?
Yes, if it is authorized to do so. A “standard” securities broker may hold client money and securities, subject to safeguarding and asset segregation obligations. If it does not need custody, there is the simplified type (€75,000), without custody and with lighter requirements.
Is it an obliged entity for anti-money laundering purposes?
Yes. Investment firms are financial obliged entities under Law 10/2010. They must implement a full AML/CFT system: risk assessment, due diligence (KYC), monitoring, SEPBLAC representative, training and, where applicable, an external expert review.
How long does authorization take?
It depends on the complexity of the project and the quality of the application. What usually drags it out is not drafting it but fixing it: clarifying inconsistencies, completing the directors’ fit and proper documentation or answering CNMV requests for information.
A coherent, complete application from the start is the best way to shorten timelines.
People also ask
Securities brokers: CNMV register, FOGAIN, agents and passporting
Is it listed in the CNMV register?
Yes. Every authorized investment firm is entered in the CNMV official register, which is public and searchable. Registration is a condition for operating and allows clients and counterparties to verify that the firm is authorized and to see the scope of its services.
Is it covered by FOGAIN?
Securities brokers are subject to the Investment Guarantee Fund (FOGAIN) regime, which compensates investors in certain cases of insolvency or default by the firm, within the limits set by law.
Can it have tied agents?
Yes. It can appoint agents to promote business or provide services on its behalf, but it must notify those agency relationships to the CNMV and keep a documentary record. The firm is liable for its agents’ actions.
Can it operate in other EU countries?
Yes, through the MiFID II EU passport: an investment firm authorized in Spain can provide services in the rest of the EEA under the free provision of services or through a branch, by notifying the CNMV, without a new authorization in each State.
Can it manage client portfolios?
Yes, if it is authorized for that service. Discretionary portfolio management is among the investment services a securities broker can provide on behalf of third parties, subject to MiFID II conduct rules and the suitability assessment.
How are client assets safeguarded?
If it holds client money and securities, it must keep them separate from its own assets, in individual accounts identified in the client’s name, with periodic reconciliations. Protecting client assets is a central focus of supervision.
Cost and firm types
Capital and comparison of investment firm types
There is no single fee: the cost depends on the regulatory capital required and the complexity of the application. We help you size it before you start.
What drives the cost
The total cost of setting up a securities broker combines two blocks: the regulatory capital required by law and the structuring cost of the project and the application.
- Minimum capital
- €150,000 for a standard securities broker (with custody or operating an MTF/OTF).
- Scope
- Investment services, custody of assets, use of agents and EU passport.
- Starting point
- Structuring from scratch is not the same as reviewing an application already under way.
- Recurring cost
- Ongoing compliance, MiFID II conduct, safeguarding, AML/CFT, DORA and reporting to the CNMV.
How we build the budget
Before committing to fees, we settle the regulatory fit and the real scope of the project. That way you avoid paying for work you do not need and get a realistic estimate of effort and timelines.
- Initial assessment of the model and the right firm type.
- Phased proposal: regulatory fit, application, conduct/safeguarding/AML and compliance.
- Timeline estimate tailored to your case, not generic templates.
| Firm type (ESI) | Initial capital | Own account? | Asset custody? | Key feature |
|---|---|---|---|---|
| Broker-dealer (sociedad de valores) | €750,000 | Yes | Yes (if authorized) | The most complete investment firm: own account and on behalf of third parties |
| Securities broker (agencia de valores) | €150,000 | No | Yes (if authorized) or operating an MTF/OTF | Only on behalf of third parties, with custody |
| Simplified securities broker (agencia de valores simplificada) | €75,000 | No | No | No custody of client money or securities |
| Portfolio management company (SGC) | €75,000 | No | No | Portfolio management and advice |
| EAF (financial advisory firm) | €75,000 | No | No | Investment advice only |
| EAFN (national) | €50,000 or liability insurance | No | No | National-scope advice |
Initial capital figures under Royal Decree 813/2023. An EAFN may replace capital with professional liability insurance (minimum cover of €1,000,000 per claim and €1,500,000 per year) or an equivalent guarantee. The exact fit and solvency requirements depend on the specific services to be provided; it is advisable to validate them case by case before starting the application.
Operational guide
How to get a securities broker (agencia de valores) authorized: a practical guide
Authorization is not just a formality: it is a system that must demonstrate consistency between business model, governance, MiFID II conduct, safeguarding and evidence. The key is to build, from the outset, a firm that can withstand real supervision.
What the CNMV really assesses
Not just the business idea. It analyzes whether the structure can support it: fit and proper directors, key functions, consistent policies, MiFID II conduct and real operational capacity for the investment services applied for.
Safeguarding is not an annex
If the broker will hold client money and securities, asset segregation, client accounts and reconciliations must be designed before the application. A weakness here undermines the authorization.
The license is the beginning, not the end
MiFID II conduct, operational AML/CFT, DORA, reporting to the CNMV, audits and handling of requests for information must be designed to last over time, not just to get through the initial application.
Checklist: preparation in 10 steps
- Regulatory fit: confirm whether the model requires a securities broker and which investment services will be provided.
- Right firm type: choose between a securities broker (standard or simplified), a broker-dealer, an SGC or an EAF/EAFN.
- Custody: decide whether the broker will hold client money and securities (€150,000) or not (€75,000).
- Corporate structure: public limited company (S.A.), minimum capital, fit and proper shareholders and directors.
- Program of activities: a coherent description of the business, clients, channels, technology and investment services.
- Governance and key functions: organizational chart, compliance, risk management and internal audit, all proportionate.
- MiFID II conduct: client classification, suitability and appropriateness, information, best execution and conflicts of interest.
- Asset safeguarding: segregation, client accounts, reconciliations and traceability (if there is custody).
- AML/CFT and DORA: risk assessment, KYC, SEPBLAC representative, ICT risk management and critical providers.
- Ongoing compliance: design reporting to the CNMV, audits and the handling of requests for information from the outset.
If you want to structure your application from scratch or review the current status of your project, see our securities market regulation services or our corporate compliance practice.
Securities broker: the operational view
CNMV authorization: from idea to application
An effective securities broker is not a dossier: it is a set of coherent decisions (regulatory fit, custody and safeguarding, MiFID II conduct, AML/CFT, governance and outsourcing) demonstrated through traceability. Here is a visual panel to understand how it works in practice.
1) FitRegulatory fit: define first, then apply
The goal is not to “get the license faster”: it is to be sure which firm type the model needs and with what scope (with or without custody). That decision shapes capital and the application.
- Analysis of the actual investment service
- Standard vs. simplified securities broker vs. broker-dealer
- Scope: with or without custody
2) ApplicationApplication: consistency across all components
The CNMV reviews consistency. The program of activities, fit and proper, policies, technology and outsourcing must fit together without internal contradictions.
- Detailed program of activities
- Directors’ fit and proper assessment
- Initial capital of €150,000 evidenced
3) Safeguarding and conductCustody and MiFID II: the most neglected areas
Segregation of client assets, reconciliations, suitability and appropriateness, best execution and conflicts of interest. When designed late, they undermine the authorization.
- Safeguarding and segregation of assets
- Documented suitability and appropriateness
- Best execution of orders
4) ComplianceOngoing compliance: without it, the license does not “live”
MiFID II conduct, operational AML/CFT, DORA, audits and reporting turn the broker into a real firm: monitoring, corrections and living evidence from day one.
Tip: inspections typically review segregation of client assets, best execution records, suitability/appropriateness and conflicts of interest.
Quick decisionPractical map: which firm type does your project need?
With custody
Standard securities broker: on behalf of third parties, holding client money and securities. Capital €150,000.
Without custody
Simplified securities broker: on behalf of third parties, without custody. Capital €75,000.
Own account
Broker-dealer (sociedad de valores): if you also deal on your own account. Capital €750,000.
Playbook
The securities broker in practice
Regulatory fit
A reasoned analysis showing that the activity requires a securities broker and with what scope (with or without custody, specific services).
Regulatory fit report, service description and comparison of investment firm types.
Program of activities
A coherent description of the business, clients, channels, technology and investment services that supports the CNMV’s review.
Detailed business report, projections, third-party contracts and functional organizational chart.
MiFID II conduct
Client classification, suitability and appropriateness, information, best execution and conflict-of-interest management.
Conduct procedures, test templates, best execution policy and conflicts register.
Asset safeguarding
Where there is custody: segregation of client assets, individual accounts, reconciliations and traceability.
Safeguarding policy, custody agreements, reconciliations and client account records.
Governance and control
Fit and proper directors, key functions, segregation of duties and an internal control system.
Minutes, appointments, conflicts policy, risk map and annual audit plan.
Common mistakes that delay or block authorization
Spot them before filing the application to avoid costly requests for information.
- Applying for a broker with custody (€150,000) when the model does not need it and the simplified type (€75,000) would suffice.
- Designing client asset safeguarding as an appendix to the application instead of a central component.
- Treating legal, business, technology and operations as if they were separate worlds.
- Directors who cannot demonstrate fitness and good repute to the CNMV.
- Outsourcing without contracts, SLAs or a documented continuity framework.
Operational glossary
Key concepts: securities brokers and investment firms
If you are structuring a securities broker (agencia de valores), these terms come up in the application, in internal policies and in dealings with the CNMV. Understanding them well helps you build a coherent project.
ESIBasics
Investment firm
A firm authorized by the CNMV to provide investment services: broker-dealers, securities brokers, portfolio management companies and financial advisory firms.
Governed by: Law 6/2023 (LMV) and Royal Decree 813/2023.
Agencia de valoresCore
Investment firm acting on behalf of third parties
A securities broker is an investment firm that operates only on behalf of third parties, without dealing on its own account. It may hold client money and securities in custody if authorized. Initial capital of €150,000.
Without custody: simplified type (€75,000).
On behalf of third partiesKey
How the broker operates
A securities broker executes, receives and transmits orders, advises, places or manages portfolios, always on behalf of clients and without dealing on its own account. That is the dividing line with the broker-dealer.
Own account: only the broker-dealer (€750,000).
CustodyAncillary service
Safekeeping and administration
Ancillary service of holding and administering financial instruments on behalf of clients, with asset segregation and safeguarding. A standard securities broker may provide it if authorized.
Individual, segregated client accounts.
MiFID IIConduct
Conduct of business rules
European investor protection framework: client classification, suitability and appropriateness, information, best execution, conflicts of interest and product governance.
Applies to all of the broker’s services.
FOGAINGuarantee
Investment Guarantee Fund
Investor compensation scheme for certain cases of insolvency or default by an investment firm. Securities brokers are subject to its contribution regime.
Coverage within legal limits.
Agency relationshipNetwork
Investment firm agents
Persons who promote business or provide services on the broker’s behalf. They must be notified to the CNMV and documented in a record; the firm is liable for their actions.
Not to be confused with an unregulated commercial agent.
Program of activitiesApplication
Regulatory business plan
The core document of the application: it describes the investment services to be provided, the operating structure, the clients and the partners of the future firm.
It must be consistent with all the policies in the application.
DORAICT resilience
Digital Operational Resilience Act
EU regulation requiring an ICT risk management framework, business continuity, incident reporting and oversight of critical providers.
Applies to investment firms authorized in the EU.
Contact
Book a call
Tell us about your project and we will explain how to structure your securities broker so it works in practice, with the shortest possible authorization timeline.
Regulatory framework for securities brokers (agencias de valores) in Spain: LMV and Royal Decree 813/2023
Investment firms, including securities brokers, are regulated by Law 6/2023 on Securities Markets and Investment Services and its implementing regulation, Royal Decree 813/2023, which repealed the former Royal Decree 217/2008. Authorization, registration and supervision are the responsibility of the CNMV, which assesses the suitability of the project, its corporate governance and the soundness of the application.
Securities broker: on behalf of third parties
The defining feature of a securities broker (agencia de valores) is that it operates exclusively on behalf of third parties and not on its own account, which distinguishes it from a broker-dealer (sociedad de valores). It can provide investment services such as reception and transmission of orders, execution of orders, advice, placing or portfolio management, as well as ancillary services such as custody, within the authorized scope.
Initial capital by firm type
Royal Decree 813/2023 sets the initial capital for each investment firm: broker-dealer €750,000; securities broker €150,000 (also if authorized to operate an MTF/OTF); securities broker not authorized to hold client money or securities €75,000; portfolio management company and EAF €75,000; and EAFN €50,000, which can be replaced by professional liability insurance with minimum cover of €1,000,000 per claim and €1,500,000 per year.
MiFID II conduct, custody and investor protection
Every securities broker is subject to the MiFID II conduct of business rules: client classification, suitability and appropriateness assessment, pre-contractual information, best execution of orders, conflict-of-interest management and product governance. If it provides custody services, it must safeguard and segregate client assets. In addition, as a financial institution, it is an obliged entity for anti-money laundering purposes under Law 10/2010.
Securities markets
Related areas
Resources and blog
Official sources
Key legislation, linked to the official text:
- Royal Decree 813/2023 of November 8 on the legal regime of investment firms and other entities providing investment servicesBOE · consolidated text
- Law 6/2023 of March 17 on Securities Markets and Investment ServicesBOE · consolidated text
- Law 10/2010 of April 28 on the prevention of money laundering and terrorist financingBOE · consolidated text
Legislation and links reviewed in .