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Investment Advisor Licensing

What capital is required for an investment advisor?

Legislation does not set a fixed minimum capital for an advisor, unlike a brokerage company, but financial stability must be proven.

Can an individual be an investment advisor?

No, investment advisor status is granted only to a legal entity (LLC, JSC) that has qualified personnel.

How long does it take to get a license?

The National Bank makes a decision within 60 days of receiving the application, although the period may be extended in case of deficiencies.

What is the difference between a broker and an advisor?

A broker has the right to execute transactions on behalf of the client and hold their assets, while an advisor only provides recommendations.

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Investment advisor licensing in Georgia is regulated by the National Bank of Georgia (NBG) and is a mandatory procedure for individuals planning to provide individual recommendations on securities to clients. This service is critical for financial market transparency and investor protection. Providing investment advice without a license constitutes illegal entrepreneurial activity and leads to criminal or administrative liability. The licensing process involves meeting strict qualification requirements, capital adequacy, and reputational standards.

What does the Investment Advisor Licensing service cover?

Specialists on Legal.ge offer full legal support at all stages of obtaining a license:

  • Preliminary Audit: Checking the applicant's compliance with NBG requirements (education, experience, criminal record).
  • Registration Documentation: Preparing the application, business plan, organizational structure, and internal regulations (including conflict of interest management policy).
  • Capital Verification: Legal assurance of minimum authorized capital formation and documentation of origin.
  • Fit and Proper Testing: Assessing administrator compliance criteria and completing declarations.
  • Representation at NBG: Communicating with the National Bank, rectifying deficiencies, and managing the license acquisition process.
  • AML/CFT Policy: Developing internal anti-money laundering instructions, which is a mandatory condition for licensing.

Activities requiring a license

A license is necessary if your activity involves:

  • Giving direct or indirect recommendations to clients on buying/selling securities.
  • Consulting services related to investment portfolio management.
  • Distributing financial analysis or research containing investment recommendations.

Georgian Legislation and Regulations

The main regulator of the field is the Law "On Securities Market" and the Order of the President of the National Bank "On Approval of the Rule for Licensing Brokerage Companies and Recognizing Investment Advisors". An investment advisor is obliged to act in the best interests of the client (Fiduciary Duty) and maintain confidentiality.

Service Delivery Process

  1. Consultation: Analyzing the business model.
  2. Document Collection: Criminal records, diplomas, capital certificates.
  3. Application Submission: Submitting documentation to the National Bank.
  4. Registration: Registration in the Registry of Investment Advisors.

Why choose a specialist on Legal.ge?

Financial sector regulations are complex and changing. An incorrectly prepared application leads to refusal and wasted time. Our lawyers will help you manage the process quickly and efficiently.

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Specialists for this service

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