ANDORRA Law and Practice Contributed by: Miguel Cases and Laura Nieto, Cases & Lacambra
• Although not a regulatory authority, the Asso - ciation of Andorran Banks (ABA) represents the collective interests of all Andorran bank - ing entities. The activity carried out by the ABA is relevant for the banking sector as it provides information for its members and the public in general, proposes appropriate rec - ommendations and promotes co-operation among its members. Lastly, it is also relevant to point out the self-reg - ulation activity carried out historically by bank - ing entities. Likewise, those Andorran banking entities that are, in turn, parent companies of consolidated groups also apply international standards on a self-regulation basis. 2. Authorisation 2.1 Licences and Application Process Prior authorisation from the AFA is required in order to provide banking activities in Andorra. Pursuant to Law 7/2013, Andorran banking enti - ties are authorised to render the following finan - cial services: • deposit-taking, which includes taking depos - its and other repayable funds (this service must only be rendered by Andorran banking entities); • granting loans and credits, including consum - er credit, mortgage, factoring, with or without recourse, and forfaiting; • financial leasing and non-financial renting with the option to buy or not; • the granting of guarantees; • payment transactions; • the issuance of means of payment, including credit cards, traveller’s cheques and bank cheques;
• transactions for own account or on behalf of clients (on money market instruments, exchange markets, foreign exchange and securities); • the issuance of securities and the provision of related services; • intermediation in interbank markets; • commercial reporting; Banking entities are also authorised to render the following investment and ancillary services: • the reception and transmission of orders in relation to one or more financial instruments; • the execution of clients’ orders; • trading for own account; • discretionary portfolio management; • providing investment advice; • the underwriting of either the issuance or placement of financial instruments; • the placement of financial instruments on the basis of a firm commitment or otherwise; • the management of multilateral trading facili - ties; • the custody and safekeeping of financial instruments on behalf of clients; • the granting of credit or loans to an investor to enable them to carry out a transaction in one or more financial instruments; • the hiring of security boxes; and • the issuance of electronic money. • advising companies on capital structure, strategy and related issues, and providing advice and services on mergers and acquisi - tions of companies; • foreign exchange services related to the pro - vision of investment services; • investment research; and • services related to underwriting the issuing or placing of financial instruments.
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