Let’s see in this guide What are “securities brokerage firm.” The securities brokerage firm (SIM) are “limited company” which replace the old stockbrokers. The SIM are different from banks because they can not take out loans (exclusive thing of lenders), but can sell the shares. The relationship between banks and security is very tight, however, as to the first side of the SIM are often present which are forwarded with electronic platforms, requests for buying and selling financial instruments. Let’s take a look at their specific tasks in the.


The SIM must be recorded in a special register by Consob (the National Commission for Companies and the Stock Exchange) in order to operate in the Italian markets, EU and non-EU nationals are accredited by Consob. By analyzing the activities of the SIM in a specific way, we find two of the main activities: that of “negotiation” and that of “placement” of the securities. Therefore it is called “brokerage” to indicate the trading of securities on behalf of third parties and “selling” for what concerns the placement of securities without guarantees. In these two cases the damage that the SIM can be found are minimal, as, negotiating and placing on behalf of third parties, there is an investment of equity (the only risk is that this purely practical and organizational level, “reputation” ). If, however, trading in titles on their own and if the placement of these provides a certain guarantee, then we are talking respectively of “dealing” and “underwriting”.

Firms that carry out this type of activity, they have capital and titles of their exclusive property and therefore the market risk will increase exponentially, being themselves the owners of the shares traded. The nature of the SIM trading is mold insurance / banking and the majority adheres to “Massimo” (the Italian Association of Financial Intermediaries). Even the SIM placement remain limited in the area of credit companies, serving as an alternative to bank branches: they adhere to “Assortment” (the National Association of Independent Financial Placement and Investment Services ).

The duties of the Securities Intermediary Company, however, does not end there. Another thing to keep in mind is that of the “management” of financial portfolios, which consists in managing individual assets in Italy through some financial instruments. To ensure personalized service, the SIM management must have an account just to help identify the financial assets of institution, owner of a patrimony separate from the SIM and other customers. The business about the management, however, is not exclusive of the SIM , but can also relate to the banks, the brokers, trust companies and asset management companies. Even this type of SIM is part of “Massimo”.

Since 2008, finally, was officially recognized also the activity of “advice” on investment, thanks to an authorization of the Bank of Italy and CONSOB (Directive 2004/39/C for the advisory service investment). This type of SIM adheres to “Cosimo” (the Association of Consulting SIM). We conclude this overview on the functions of the Securities Brokerage Company specifying that, when operating in their entirety, by implementing any type of activity within their competence, they are called “mulch-purpose”.