Activities and Services

As established in Law 7/2013, May 9th, on the legal framework of the operating entities in the Andorran financial system and other provisions regulating the exercise of financial activities in the Principality of Andorra [Llei 7/2013, del 9 de maig, sobre el règim jurídic de les entitats operatives del sistema financer andorrà i altres disposicions que regulen l’exercici de les activitats financeres al Principat d’Andorra], natural or legal persons are considered financial investment firms, when their main activity is to provide one or more professional investment services to third parties with regards to financial instruments, and that in addition perform other ancillary services..

The following are considered investment services:

• The reception and transmission of client orders in relation to one or more financial instruments;
• The execution on behalf of clients’ orders as mentioned above, which consists in the business of purchase or sale of one or more financial instruments;
• Proprietary account negotiation that consists in the formalization of operations on one or several financial instruments;
• The discretionary and individualized management of portfolios in accordance with the mandate given by clients;
• Investment advice that consists in providing personalized recommendations to clients, at their request or at the initiative of the investment financial entity, on one or more operations related to financial instruments
• The assurance of the issue or the placement of financial instruments;
• The placement of financial instruments, with or without, a firm commitment basis;
• The service management of multilateral trading systems.

The following are considered ancillary services, among others:

• The administration and custody of financial instruments on behalf of clients, including custody and related services such as treasury and guarantee management;
• The granting of credits or loans to an investor in order to allow an operation in one or several financial instruments, when the financial investment entity that grants the credit or the loan participates in the operation;
• Advice to companies in the field of capital structure, industrial strategy and related issues, and advice and services in relation to mergers and acquisitions of companies; Currency exchange services when they are related to the provision of investment services
• Investments reports and financial analysis, or other forms of general recommendation regarding operations in financial instruments
• Services related to assuring the issuance or placement of financial instruments.

There are 4 types of financial investment entities, which are differentiated according to the type of services they can provide:

• Financial Investment Companies;
• Financial Investment Agencies;
• Asset Management Companies;
• Financial advisors.