TITLE IVINITIAL CAPITAL OF INVESTMENT FIRMS
Article 29Initial capital of particular types of investment firms
1
An investment firm that does not deal in any financial instruments for its own account or underwrite issues of financial instruments on a firm commitment basis, but which holds client money or securities and which offers one or more of the following services, shall have initial capital of EUR 125 000:
a
the reception and transmission of investors' orders for financial instruments;
b
the execution of investors' orders for financial instruments;
c
the management of individual portfolios of investments in financial instruments.
2
The competent authorities may allow an investment firm which executes investors' orders for financial instruments to hold such instruments for its own account if the following conditions are met:
a
such positions arise only as a result of the firm's failure to match investors' orders precisely;
b
the total market value of all such positions is subject to a ceiling of 15 % of the firm's initial capital;
c
the firm meets the requirements set out in Articles 92 to 95 and Part Four of Regulation (EU) No 575/2013;
d
such positions are incidental and provisional in nature and strictly limited to the time required to carry out the transaction in question.
3
Member States may reduce the amount referred to in paragraph 1 to EUR 50 000 where a firm is not authorised to hold client money or securities, to deal for its own account, or to underwrite issues on a firm commitment basis.
4
The holding of non-trading-book positions in financial instruments in order to invest own funds shall not be considered as dealing for its own account in relation to the services set out in paragraph 1 or for the purposes of paragraph 3.