How to Get a Finance License in the EU: Complete Guide!

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Getting a finance license in the EU can seem like a daunting task. This is especially true if you are working with an international organization and need to get your financial services license in more than one country. It is important, however, to consider all of your options before diving into something as permanent as getting certified. Read on to learn about different ways you can get your finance license in the EU, the advantages and disadvantages of each option, and what steps you should take towards getting your financial services license.

 

What is a Financial Services License?

A financial services license is an official document that gives you the right to provide certain financial services in certain countries. Typically, these services include lending money and investing in assets such as stocks, bonds, and real estate. Getting a financial services license allows you to operate a company and offer financial services in a regulated environment, which can reduce risk and increase trust in your services. Note: In this article, the term “finance license” refers to the official document that allows you to provide financial services.

 

New EU Legislation and Financial Services Licensing

As the EU continues to expand and integrate, it is important to share information between member countries, to ensure there is no exploitation of loopholes and to have an accurate picture of financial risk. In order to do this, the EU put together a plan called the third European Money Laundering Directive, also known as the EU Anti-Money Laundering Directive (2018/843/EU). This legislation brings new financial services licensing requirements into effect across many EU member countries. The new EU legislation for financial services licensing will apply to financial institutions, such as banks and credit unions, and some non-financial companies, such as law and accounting firms, that offer financial services. All of these organizations will be required to obtain a license to operate in any EU country, even if they are only operating in one country.

 

How to Get a European Finance License: Step by step

There are a few different ways to get a finance license in the EU, and they all involve different levels of commitment and time. Take a look at the different options below and find the one that works best for you.

 

Registered Financial Auditor (RFA)

If you are not interested in becoming a financial advisor and just want to be able to audit financial statements that are required by certain EU member countries, then becoming a Registered Financial Auditor (RFA) is the way to go. Becoming a RFA requires taking the CFA exams, completing a work experience requirement and maintaining your membership with the CFA Institute. You can choose which country’s financial reporting standard you want to comply with and for how long. The advantage of this option is that you are not required to take any additional exams or get any type of certification. The disadvantage is that you cannot actually offer any financial services and cannot use the word “audit” in your business name.

 

European Equivalence Certification

If you want to offer financial services but do not want to get licensed in each country where you operate, then you can apply for a European equivalence certification. This will allow you to operate in multiple countries with a single EU license. European equivalence certification is granted to countries determined to have a financial services regulatory system that is equivalent to the EU’s. The advantage of this route is that you only have to get certified once and can operate your business across multiple EU countries without having multiple licenses. The disadvantage is that you have to demonstrate that your country has a financial services regulatory system that is equivalent to the EU’s. You also have to renew your certification every couple years.

 

Summary

Getting a finance license in the EU can seem like a daunting task. This is especially true if you are working with an international organization and need to get your financial services license in more than one country. It is important, however, to consider all of your options before diving into something as permanent as getting certified. There are a few different ways to get a finance license in the EU, and they all involve different levels of commitment and time. Take a look at the different options above and find the one that works best for you.