Independent advisory service for investment in securities

Independent advisory service for investment in securities is classified as an auxiliary investment service, which may be provided, not only by financial intermediaries registered with the CMVM, but also by individuals, exclusively, authorized by the CMVM.

An advisor may not have any dealings with the financial intermediary on behalf of or at the risk of the investor. Thus, the independent advisor may never be given the power to utilize securities accounts or issue buy or sell orders on said securities, in the name of or on behalf of the account holder. However, there is nothing to prevent the investor from issuing orders to the financial intermediary through means (telephone, fax and internet) put at his/her disposal by the advisor.

An independent advisor may not enter into contracts beyond the scope of his/her establishment, nor is he/she permitted to carry out any unsolicited acts of prospecting – either on or off site – regarding non-professional investors with whom no previous client relationship existed. However, the advisor is permitted, in general, to advertise and promote his/her activity. 

An advisor is paid by investors for services which he/she offers and should, in turn, issue a fee slip, where all the sums paid by the client together with the services provided are recorded. 

Independent advisors, duly authorised by the CMVM, may establish a company for exercising, on their own behalf, the activity of independent advisor, provided that the necessary level of transparency is ensured with regard to the ownership of the respective equity capital and relationship between advisors and their clients.