Becoming a financial adviser or insurance intermediary

Terms used

• CNMV — The CNMV is Spain's securities regulator, which authorises investment advisers and portfolio managers.
• DGSFP — The DGSFP is Spain's insurance supervisor, which keeps the register of insurance distributors.
• EAF — An EAF is an empresa de asesoramiento financiero, a firm authorised to give investment advice only.
• SGC — An SGC is a sociedad gestora de carteras, a firm authorised to manage client investment portfolios.
• Corredores — Corredores are insurance brokers, who work for the client rather than for one insurer.

Key rules

• Separate registers: Investment, insurance and mortgage work each have their own supervisor, and one registration does not cover the others.
• Competence proof: You need a recognised qualification and, for investment staff, experience, as well as authorisation or registration.
• Mortgages: Mortgage intermediaries and advisers register with the Bank of Spain, and you must be established in Spain.
• EU passport: EU-authorised firms notify their home regulator rather than applying in Spain, but still follow Spanish conduct rules.

The short answer

Advising on or selling investment, insurance or mortgage products in Spain needs authorisation or registration with the relevant supervisor, plus proof that you are competent. Each product has its own supervisor and its own register. Being registered for one does not cover the others. EU firms can use a passport instead of applying from scratch.

Investment advice and portfolio management

The CNMV (the securities regulator) authorises these activities. Choose your type of firm first, because it sets what you can do:

• An advice-only firm (EAF) gives advice but does not manage money.
• A portfolio manager (SGC) manages client portfolios.
• A sociedad de valores or agencia de valores offers broader services.
• Credit institutions have their own route.

You apply to the CNMV with a business plan, minimum capital, a suitable governance and management structure, checks on your shareholders, internal controls and a registered office in Spain. You also need membership of the investor guarantee fund. An advice-only firm can use professional indemnity insurance instead. Once authorised, you are entered in the CNMV's registers. Capital and insurance minimums are set by regulation and change, so ask the CNMV for the current amounts before you plan your budget.

Competence for staff

Anyone giving investment information or advice must hold a relevant qualification and have experience. That means a relevant university degree or a certificate on the CNMV's accepted list, such as EFA or EFPA European Financial Advisor.

• Information: around six months' experience.
• Advice: around 12 months' experience. This can be supervised.

The timeline below shows the continuing training hours.

Insurance

The DGSFP (the insurance supervisor) keeps the public register of insurance distributors. Who registers you depends on your type:

• Exclusive agents are registered through the insurer's application.
• Agents linked to several insurers apply themselves.
• Brokers (corredores) apply themselves.

You apply through the DGSFP's electronic office. You need good repute and accredited training. If you are an agent linked to several insurers or a broker, you also need professional indemnity insurance. Brokers also need a financial capacity guarantee. The insured sums are set by law and updated, so confirm them with the DGSFP.

Training comes in three levels: basic, intermediate and top. Roughly, the basic level is 200 hours, the intermediate level is 500 hours or a related degree, and the top level is 1,000 hours for people running distribution organisations. Continuing training is 15 hours a year. Confirm the current hours with the DGSFP before you enrol on a course.

Mortgages

If you intermediate or advise on mortgage credit for consumers, you must be registered with the Bank of Spain. Advisers go on the register for advice. You need good repute, a relevant qualification and ongoing training, professional indemnity insurance or an equivalent guarantee, and you must be a person or legal entity established in Spain. Appointed representatives are registered through their principal.

Supervision is shared with the regions, and some non-bank intermediaries register with regional consumer authorities. Which register applies to you depends on your region and entity type, so ask the Bank of Spain first.

If you are an EU firm

An EU-authorised firm can offer services in Spain, or open a branch, through the passport. You do not apply to Spain. You notify your home regulator, which passes the notice to the Spanish authority: the CNMV for investment firms, the Bank of Spain for credit institutions, and the DGSFP for insurance intermediaries.

• For services, you can start after your home regulator sends the notification.
• For a branch, you can start once the Spanish authority replies or the waiting period ends.

You must follow Spanish conduct rules either way.

Choosing your route

The decision, timeline, checklist and FAQ below help you pick between the passport and Spanish authorisation, and keep track of the steps.

Choosing between options

How do you get permission to work in Spain as a financial or mortgage intermediary?

• Use your EU passport for services: You are already authorised in another EU country and want to provide services in Spain without setting up an office.

• Use your EU passport to open a branch: You are authorised in another EU country and want a permanent presence in Spain.

• Get authorised or registered in Spain: You are not authorised in the EU, or you want to act as a mortgage intermediary or adviser, which needs Spanish registration.

If an EU regulator already authorises you for investment or insurance work, notify your home regulator and use the passport; otherwise apply to the Spanish supervisor.

Timeline and deadlines

• Keep up continuing training: about 10 hours for information, 30 hours for advice: every year

• EU firm opening a branch in Spain: start once the Spanish authority replies or the waiting period ends: usually after about one month for insurance intermediaries

Checklist

• Apply to the CNMV for authorisation before you give investment advice or manage portfolios, with a business plan, minimum capital and an office in Spain.

• Choose the right type of firm, such as an advice-only firm (EAF) or a portfolio manager (SGC), before you apply.

• Check that each adviser holds a qualification on the CNMV's accepted list and has the required experience.

• Register in the insurance distributors register through the DGSFP's electronic office if you sell insurance as an agent or broker.

• Confirm the insurance training level you need (basic, intermediate or top) and complete its hours.

• Register with the Bank of Spain if you intermediate or advise on mortgage credit, and ask which register applies in your region.

Frequently asked questions

How much experience do I need to give investment advice?

You need around 12 months of experience to give investment advice, and around six months if you only give information. The experience can be supervised. You also need about 30 hours of continuing training a year for advice and about 10 hours for information.

Which qualifications count for investment advice?

A relevant university degree or an accepted certificate counts, such as the EFA or the EFPA European Financial Advisor. The CNMV, Spain's securities regulator, keeps a list of accepted qualifications. Check that list before paying for a course.

How many training hours do insurance distributors need?

Insurance distributors need training in three levels: about 200 hours for the basic level, about 500 hours (or a related degree) for the intermediate level and about 1,000 hours for those running a distribution organisation. Continuing training is 15 hours a year.

Do I need a different registration to arrange mortgages?

Yes, mortgage intermediaries and advisers must be registered separately with the Bank of Spain, and some regions keep a register for non-bank intermediaries.