EAFI (Independent Financial Advisory Firm)

What is an EAFI

An EAFI (Empresa de Asesoramiento Financiero Independiente) is the Spanish regulatory licence category for firms and individuals providing investment advice on a professional and independent basis. The defining characteristic is independence: unlike bank-affiliated advisors or agent networks, an EAFI cannot receive retrocessions, commissions or any other benefit from the product providers whose instruments it recommends to clients. All inducements received must be returned to the client in full.

EAFIs are regulated under Articles 138 and 139 of the Ley 6/2023, de 17 de marzo, de los Mercados de Valores y de los Servicios de Inversión (LMVSI), and by Real Decreto 217/2008, de 15 de febrero, which sets out the legal framework for investment services firms. The transposition of MiFID II (Directive 2014/65/EU) and the subsequent Real Decreto 813/2023 have materially strengthened the independence requirements applicable to EAFIs.

Types of EAFI and authorisation requirements

EAFIs may be constituted in two forms:

• Corporate EAFI (sociedad): Typically structured as a limited company (S.L. or S.A.), subject to a minimum capital of €75,000 or, alternatively, a professional liability insurance policy providing equivalent coverage.
• Individual EAFI (persona física): The individual advisor acting directly as an EAFI, subject to the same solvency requirements (capital or professional indemnity insurance).

The CNMV authorisation file must include:

1. A programme of activities describing the services to be provided and the types of instruments covered
2. Evidence of minimum capital or professional liability insurance
3. Documentation evidencing the suitability, good repute and professional experience of significant shareholders and senior management
4. Description of the organisational structure and internal control arrangements
5. An independence declaration setting out mechanisms to avoid or manage conflicts of interest

MiFID II independence obligations

Independence status under MiFID II imposes specific obligations that distinguish EAFIs from non-independent advisory services:

• Prohibition on inducements: The EAFI cannot receive retrocessions, fees or any other monetary benefit from product manufacturers or distributors whose instruments it recommends. Any third-party inducement received must be passed on entirely to the client.
• Sufficiently wide product range: Before recommending any specific product, the EAFI must assess a sufficiently broad range of instruments available on the market, not limited to those of a single provider or group.
• Periodic suitability reviews: The EAFI must periodically reassess the suitability of recommended portfolios to ensure they remain aligned with the client’s profile.

Practical implications

The EAFI licence is the most agile regulatory option for independent financial advisors who want to operate legally in Spain. The CNMV has a legal deadline of six months to resolve an authorisation application, though in practice the timeline for mid-complexity cases typically runs twelve to eighteen months. Once authorised, the EAFI is subject to ongoing CNMV supervision, including periodic information filings and continuous compliance with capital and conduct requirements.

For support with EAFI authorisation and MiFID II compliance programme design, see BMC’s financial regulatory practice.