Different Types of Investment Services

“Investment services” is a general term used to describe a whole range of activities related to investments in financial instruments. Typically, the most common forms of investment services are the following:

  • The provision of investment advice whereby investors are provided with personal recommendations on the investments products that would be suitable for them (also known as an advisory service);

  • The purchase or sale of financial products on an execution only basis (therefore without receiving investment advice); or

  • The provision of portfolio management services (collective or discretionary).

The below links provide an explanation of the different types of investment services which may be provided by licensed entities. It also explains some of the requirements these entities need to be in line with in terms of the revised Markets in Financial Instruments Directive known as MiFID II.

One should always check that such entity is in fact licensed to provide investment services before entering into an agreement with such entity. This information is provided in the Financial Services Register. Investment services should only be sought from licensed entities.