Module 1 · Chapter 2

The Licence and the Passport

A broker’s licence lists the services it may offer, and nothing else. The passport lets that one licence reach clients in other member states, once its regulator has passed on a notice.

≈ 7 min read 8-question test

In this chapter

  • What Thalvia’s licence lets it do, and why it needs capital of its own
  • What Thalvia never offers, and why clause 3.3 says so
  • How the passport works, and what a new country needs before launch

2.1The licence and the passport in one paragraph

A broker needs a licence from the regulator in its home country before it takes a single order. The licence names each service the broker may offer. Thalvia’s licence from CySEC names two services, which are all it may offer. The passport lets a firm use one licence in other member states, and Thalvia uses it to serve clients in Greece and Germany.

Key point

The licence decides what Thalvia may do, and the passport decides where. A new service needs a wider licence. A new country needs a passport notice first.

Also in this chapter

  1. What Thalvia’s licence covers
  2. What Thalvia does not offer
  3. The passport: one licence for other EU countries
  4. One Client Agreement in three languages
  5. Your job

Preview

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