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2026-01-29

Regulation No. 2025-02 on Independent Financial Advisors

The Central Bank of the Republic of San Marino issued Regulation No. 2025-02 to establish a comprehensive regulatory framework for independent financial advisors, defining their scope, registration requirements, and operational conduct. The regulation mandates the creation of a public registry managed by the Central Bank, detailing strict eligibility criteria regarding honorability, professionalism, and independence for both individuals and legal entities. It further imposes rigorous obligations on advisors concerning client information, conflict of interest management, and cross-border activities to ensure market integrity and consumer protection.

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REGULATION ON INDEPENDENT FINANCIAL ADVISORS year 2025 / number 02 (Consolidated text as of 29/01/2026 - Update I)

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 2

INDEX

TITLE I DEFINITIONS AND GENERAL PROVISIONS.................................................................................. 4 Article 1 – Definitions................................................................................................................................................... 4 Article 2 – Scope of application and exclusions.................................................................................................................. 6

TITLE II REGISTER OF INDEPENDENT FINANCIAL ADVISORS................................................. 7 CHAPTER I INSTITUTION, CONTENT AND PUBLICITY OF THE REGISTER .................................................................................... 7 Article 3 – Establishment of the register..................................................................................................................................... 7 Article 4 – Content of the register ..................................................................................................................................... 7 Article 5 – Publication, consultation and maintenance of the register.................................................................................................. 8

CHAPTER II REQUIREMENTS REQUIRED FOR REGISTRATION IN THE REGISTER......................................................................................... 9 Article 6 – Requirements of honorability ................................................................................................................................... 9 Article 7 – Professional requirements............................................................................................................................. 10 Article 8 – Requirements of independence .............................................................................................................................. 11 Article 9 – Impeding situations and incompatibilities.......................................................................................................... 11 Article 10 – Activity program and report on organizational structure ........................................................................... 12

CHAPTER III PROCEDURE FOR REGISTRATION IN THE REGISTER............................................................................................ 12 Article 11 – Application for registration................................................................................................................................ 12 Article 12 – Measures by the Central Bank............................................................................................................... 13

CHAPTER IV SUSPENSION AND DELETION FROM THE REGISTER ........................................................................................... 14 Article 13 – Suspension upon request by the party..................................................................................................................... 14 Article 14 – Suspension ex officio ................................................................................................................................... 14 Article 15 – Deletion upon request by the party.................................................................................................................. 14 Article 16 – Deletion ex officio ................................................................................................................................ 15 Article 17 – Procedure and effects of suspension and deletion measures .................................................................. 15

TITLE III RULES OF CONDUCT AND ORGANIZATION ..................................................18 CHAPTER I GENERAL PROVISIONS................................................................................................................................... 18 Article 18 – General rules of conduct, organization and responsibility .................................................................... 18 Article 19 – Professional updating ........................................................................................................................ 20 Article 20 – Insurance policy ................................................................................................................................... 21

CHAPTER II INFORMATION, CONTRACTS AND RECOMMENDATIONS......................................................................................... 21 Article 21 – Rules for presentation and information on the independent financial advisor and related services................................... 21 Article 22 – Independent financial advisory contract.............................................................................................. 23 Article 23 – Acquisition of information from clients ...................................................................................................... 24 Article 24 – Classification of clients ............................................................................................................................. 27 Article 25 – Information on admitted financial activities ................................................................................................ 27 Article 26 – Information on costs and related charges......................................................................................................... 28 Article 27 – Adequacy assessment....................................................................................................................... 30 Article 28 – Duty to account.................................................................................................................................. 32

CHAPTER III REQUIREMENTS AND METHODS FOR COMPLIANCE WITH INFORMATION OBLIGATIONS............................................. 32 Article 29 – General requirements for information and conditions for correct, clear and non-misleading information .............................. 32 Article 30 – Methods for compliance with information obligations .................................................................................... 34 Article 31 – Information on durable medium and via website .................................................................................. 35

CHAPTER IV ORGANIZATION AND PROCEDURES .................................................................................................................. 36 Article 32 – Internal procedures and remuneration practices............................................................................................................ 36 Article 33 – Conflicts of interest.................................................................................................................................... 37 Article 34 – Preservation of documentation and records ........................................................................................... 40

TITLE IV SUPERVISION........................................................................................................................................41 Article 35 – Powers of the Supervisory Authority.................................................................................................................. 41 Article 36 – Inspections ................................................................................................................................. 41 Article 37 – Documentation to be sent annually to the Supervisory Authority ..................................................................... 42 Article 38 – Communication obligations........................................................................................................................... 43 Article 39 – Sanctions.................................................................................................................................................. 43

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 3

TITLE V CROSS-BORDER OPERATIONS ........................................................................................44 Article 40 – Operations abroad by San Marino independent financial advisors................................................................ 44 Article 41 – Operations in the Republic of San Marino by foreign independent financial advisors ............................................................ 44

TITLE VI FINAL PROVISIONS...................................................................................................................46 Article 42 – Models.................................................................................................................................................... 46 Article 43 – Transitional provisions.............................................................................................................................. 46 Article 44 – Entry into force....................................................................................................................................... 46

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 4

TITLE I DEFINITIONS AND GENERAL PROVISIONS

Article 1 – Definitions

  1. For the purposes of this Regulation, the following terms are understood as: − “admitted financial activities”: securities, money market instruments, units in common investment funds or collective investment undertakings as referred to in points 1), 2) and 3) of Letter A of Annex 2 of the LISF, as well as crypto-assets; − “Central Bank”: the Central Bank of the Republic of San Marino; − “clients” or “clientele”: subjects, natural or legal persons, recipients of the services provided by independent financial advisors as referred to in Article 25-bis of the LISF; − “retail clients”: clients who do not fall under professional clients; − “professional clients”: subjects as referred to in Annex 1 of BCSM Regulation No. 2024-05 on investment services and activities; − “independent financial advice”: investment advice, as defined in Article I.I.2 of BCSM Regulation No. 2024-05 on investment services and activities, and/or crypto-asset advice, as defined in Article I.I.2 of BCSM Regulation No. 2024-03 on crypto-assets, carried out independently as they meet the criteria and requirements of independence established in this Regulation; − “independent financial advisor”: a natural or legal person who professionally exercises the activity of independent financial advice limited to admitted financial activities, without the possibility of holding, even temporarily, funds, financial instruments or crypto-assets belonging to clients; − “crypto-assets”: tokens as defined in Article 2, paragraph 1, letter i) of Delegated Decree 29 August 2024 No. 138 and subsequent amendments; − “identity document”: a document, containing a photograph and the indication of all personal details of a natural person, issued by a national or foreign public authority; − “issuers”: subjects issuing the financial instruments referred to in Annex 2 to the LISF; − “sustainability factors”: factors as defined in Article I.I.2 of BCSM Regulation No. 2024-05 on investment services and activities; − “electronic format”: any durable medium other than paper; − “Companies Law”: Law 23 February 2006, No. 47 and subsequent amendments; − “LISF”: Law 17 November 2005, No. 165 and subsequent amendments; − “sustainability preferences”: the choice, by a client or potential client, to integrate or not, and if so to what extent, one or more of the following admitted financial activities into their investment:

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 5 ▪ an admitted financial activity for which the client or potential client establishes that a minimum share must be invested in sustainable investments pursuant to Article 2, point 1, of EU Regulation 2020/852; ▪ an admitted financial activity for which the client or potential client establishes that a minimum share must be invested in sustainable investments pursuant to Article 2, point 17, of EU Regulation 2019/2088; ▪ an admitted financial activity that considers the main negative impacts on sustainability factors where qualitative or quantitative elements proving such consideration are established by the client or potential client; − “investment service provider” or “ISP”: a financial undertaking as defined in Article I.I.2 of BCSM Regulation No. 2024-05 on investment services and activities; − “crypto-asset service provider” or “CASP”: a financial undertaking as defined in Article I.I.2 of BCSM Regulation No. 2024-03 on crypto-assets; − “financial promoter”: a natural person who, as an agent or mandatary, professionally exercises the off-premises offer of financial instruments and investment services as referred to in Article 24 of the LISF; − “register”: the public register of independent financial advisors as referred to in Article 25-bis of the LISF; − “sustainability risk”: risk as defined in Article I.I.2 of BCSM Regulation No. 2024-05 on investment services and activities; − “investment services”: activities and services as referred to in Letter D of Annex 1 of the LISF; − “crypto-asset services”: services as referred to in Letter L-bis of Annex 1 of the LISF; − “independent financial advisory company” or “IFAC”: a legal person constituted as a joint-stock company or limited liability company, not falling under authorized subjects, who professionally exercises the activity of independent investment advice; − “authorized subjects”: subjects who have obtained authorization to exercise one or more reserved activities as referred to in Annex 1 of the LISF; − “relevant subject”: subject falling, for the independent financial advisor, into one of the categories of the analogous definition contained in Article I.I.2 of BCSM Regulation No. 2024-05 on investment services and activities; − “admitted financial instruments”: securities, money market instruments, units in common investment funds or collective investment undertakings as referred to in points 1), 2) and 3) of Letter A of Annex 2 of the LISF; − “durable medium”: any instrument that allows the client to store information addressed personally to him, so that it can be easily retrieved for a period of time adequate for the purposes to which the information is intended and that allows the unaltered reproduction of the stored information;

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 6 − “beneficial owner”: the natural person as defined in Article 1, paragraph 1, letter r) of Law 17 June 2008 No. 92 and subsequent amendments.

  1. Unless otherwise specified, for the purposes of these provisions, the definitions contained in the LISF apply.

  2. In the subsequent articles of this Regulation, words referring to these definitions are printed in bold.

Article 2 – Scope of application and exclusions

  1. Pursuant to and in implementation of what is provided by Article 25-bis, paragraph 6, of the LISF, this Regulation governs: a) the professional exercise within the territory of the Republic of San Marino of INDEPENDENT FINANCIAL ADVICE carried out by INDEPENDENT FINANCIAL ADVISORS; b) the formation, content and updating of the REGISTER, as well as the methods and requirements for registration therein, including by subjects already subject to supervision by foreign supervisory authorities, as well as cases of suspension, deletion and any other aspect related to the maintenance of the REGISTER itself.

  2. However, the following services are excluded from this Regulation, even if provided accessorially by INDEPENDENT FINANCIAL ADVISORS, which manifest themselves in the provision of recommendations that: a) although concerning operations related to specific financial instruments and/or CRYPTO-ASSETS, are not personalized, as they are not addressed to one or more identified CLIENTS (lack of subjective element), such as, by way of example, investment research, financial analysis and other forms of recommendation concerning financial instruments and/or CRYPTO-ASSETS provided they are addressed exclusively to the general public; b) although personalized, do not concern operations related to specific financial instruments and/or CRYPTO-ASSETS, but have as their object “types” of financial instruments and/or CRYPTO-ASSETS (lack of objective element), such as, by way of example, asset allocation and financial planning services.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 7

TITLE II REGISTER OF INDEPENDENT FINANCIAL ADVISORS

Chapter I Institution, content and publicity of the register

Article 3 – Establishment of the register

  1. The PUBLIC REGISTER OF INDEPENDENT FINANCIAL ADVISORS is established at the CENTRAL BANK, pursuant to what is provided by Article 25-bis, paragraph 2 of the LISF.

  2. The REGISTER shall include, upon verification of the possession of all requirements provided in Chapter II of this Title, INDEPENDENT FINANCIAL ADVISORS, distinguished into the following two Sections: a) Section A – Natural persons who professionally exercise INDEPENDENT FINANCIAL ADVICE on their own account; b) Section B – Legal persons who, as INDEPENDENT FINANCIAL ADVISORY COMPANIES, professionally exercise INDEPENDENT FINANCIAL ADVICE.

  3. If INDEPENDENT FINANCIAL ADVICE also concerns CRYPTO-ASSETS and/or CRYPTO-ASSET SERVICES, the INDEPENDENT FINANCIAL ADVISOR must also be registered in the Register of DLT operators pursuant to Delegated Decree No. 138/2024.

Article 4 – Content of the register

  1. In Section A of the REGISTER, for each natural person registered, the following information is reported: a) registration number; b) date of registration; c) surname and name; d) place and date of birth; e) business name and economic operator code with which the natural person carries out INDEPENDENT FINANCIAL ADVICE on their own account; f) main place of business and place of preservation of mandatory documents; g) any measures adopted by the CENTRAL BANK.

  2. In Section B of the REGISTER, for each INDEPENDENT FINANCIAL ADVISORY COMPANY registered, the following information is reported: a) registration number;

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 8 b) date of registration; c) company name, however formed, must contain the words “INDEPENDENT FINANCIAL ADVISORY COMPANY” or the abbreviation “IFAC”; d) economic operator code; e) address of the main headquarters and any secondary offices; f) surname and name, place and date of birth, of those who: ⎯ are the legal representative of the INDEPENDENT FINANCIAL ADVISORY COMPANY, and, if appointed, the Chief Executive Officer and the General Manager; ⎯ provide CLIENTS with INDEPENDENT FINANCIAL ADVICE services, on behalf of the INDEPENDENT FINANCIAL ADVISORY COMPANY, also in places other than the company's headquarters; g) any measures adopted by the CENTRAL BANK.

Article 5 – Publication, consultation and maintenance of the register

  1. The CENTRAL BANK is responsible for the maintenance and updating of the REGISTER referred to in the previous Article 3.

  2. The CENTRAL BANK, for the purposes of the previous paragraph 1: a) proceeds with registrations and deletions, notifying the interested parties, as well as updating the data reported in the REGISTER; b) issues certificates of registration and deletion, as well as any further certification upon request of the registered persons pertinent to the data present in the REGISTER; c) promptly annotates in the REGISTER the measures adopted by it against the registered persons; d) verifies the persistence of the requirements required for the maintenance of registration in the REGISTER.

  3. The REGISTER is kept electronically and is public in that anyone, upon written request to the CENTRAL BANK, can receive official certification of the data and information contained therein.

  4. Without prejudice to what is provided in the previous paragraph, the CENTRAL BANK publishes on its website (www.bcsm.sm) the list of INDEPENDENT FINANCIAL ADVISORS, as well as an extract of the REGISTER containing the most updated information regarding the elements referred to in Article 4, paragraphs 1 and 2.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 9

Chapter II Requirements required for registration in the register

Article 6 – Requirements of honorability

  1. For registration in the REGISTER, it is necessary to possess the same requirements of honorability required for corporate executives of investment companies, as regulated in Title I, Part II, of Regulation No. 2025-05 on corporate executives of San Marino financial companies.

  2. For subjects registered in Section A of the REGISTER, the requirements referred to in this article are to be understood as required of the registered persons themselves.

  3. For subjects registered in Section B of the REGISTER, the requirements referred to in this article apply with regard to the shareholders and BENEFICIAL OWNERS of the IFAC, to those who are its directors, auditors and managers, as well as to those who, for any reason, provide INDEPENDENT FINANCIAL ADVICE directly to CLIENTS at the company's headquarters. In the event that a shareholder of an IFAC is itself a legal person, the requirements of honorability are also verified with regard to those who are its directors or substantially equivalent figures and managers.

  4. To prove the possession of the requirements indicated in the previous paragraph 1, the application for registration must be attached with the following documents, dated no earlier than six months from the date of submission of the application itself: a) general criminal record, certificate of pending charges, civil certificate or certificate of no bankruptcy ever, issued by the competent public offices of the place where the person has resided for the longest period in the last five years, in compliance with the criteria of “substantial equivalence” referred to in Article 1, paragraph 2 of the COMPANIES LAW; b) self-declaration, regarding all remaining jurisdictions, made, unless signed digitally pursuant to law, before a San Marino notary public or directly

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 10 before a competent authority of the country of residence, attesting to the absence of any impediments or incompatibilities.

  1. The documents referred to in paragraph 4 must be translated into Italian if issued in a foreign language, and legalized or apostilled if issued abroad.

Article 7 – Professional requirements

  1. To be registered in the REGISTER, INDEPENDENT FINANCIAL ADVISORS must possess the following professional requirements: a) a university degree in economics, law, or other disciplines deemed relevant by the CENTRAL BANK, or a professional qualification recognized by the CENTRAL BANK; b) at least three years of professional experience in the field of financial advice, investment services, or related activities, acquired after obtaining the required educational qualification; c) completion of specific training courses on independent financial advice, ethics, and regulatory compliance, as approved by the CENTRAL BANK.

  2. For INDEPENDENT FINANCIAL ADVISORY COMPANIES registered in Section B of the REGISTER, the professional requirements must be met by the individuals who provide INDEPENDENT FINANCIAL ADVICE services on behalf of the company. The company must also demonstrate that it has adequate organizational structures and resources to ensure the professional performance of its activities.

  3. The CENTRAL BANK may require additional evidence of professional competence, including but not limited to, passing an examination administered by the CENTRAL BANK or a recognized professional body.

  4. Professional requirements must be maintained throughout the period of registration. INDEPENDENT FINANCIAL ADVISORS must provide proof of continued professional development as required by Article 19.

Article 8 – Requirements of independence

  1. INDEPENDENT FINANCIAL ADVISORS must exercise their activities independently, without being subject to any influence from financial product providers that could compromise their objectivity.

  2. Independence is compromised if the INDEPENDENT FINANCIAL ADVISOR: a) is part of a group that includes issuers or distributors of financial products; b) receives commissions or incentives from product providers that are not transparently disclosed to clients; c) has a financial interest in the sale of specific financial products; d) is subject to performance targets linked to the sale of specific products.

  3. INDEPENDENT FINANCIAL ADVISORS must implement policies and procedures to identify, prevent, and manage conflicts of interest, as detailed in Article 33.

  4. The CENTRAL BANK may require INDEPENDENT FINANCIAL ADVISORS to provide evidence of their independence, including organizational charts, remuneration policies, and conflict of interest registers.

Article 9 – Impeding situations and incompatibilities

  1. The following situations are impeding for registration in the REGISTER: a) being subject to bankruptcy, liquidation, or insolvency proceedings; b) having been convicted of a crime involving fraud, dishonesty, or moral turpitude; c) being subject to a prohibition or restriction imposed by a supervisory authority; d) having been revoked or suspended from registration in a similar register in another jurisdiction.

  2. The following situations are incompatible with the exercise of INDEPENDENT FINANCIAL ADVICE: a) holding a position in an entity that issues or distributes financial products, unless specific safeguards are in place; b) receiving remuneration from product providers that is not transparently disclosed to clients; c) having a financial interest in the sale of specific financial products.

  3. INDEPENDENT FINANCIAL ADVISORS must promptly notify the CENTRAL BANK of any changes in their status that may affect their eligibility or independence.

Article 10 – Activity program and report on organizational structure

  1. Applications for registration must include a detailed activity program outlining the services to be provided, the target market, and the operational procedures.

  2. INDEPENDENT FINANCIAL ADVISORY COMPANIES must also provide a report on their organizational structure, including details on internal controls, risk management, and compliance functions.

  3. The CENTRAL BANK may request additional information or documentation to assess the adequacy of the activity program and organizational structure.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 12

Chapter III Procedure for registration in the register

Article 11 – Application for registration

  1. Applications for registration in the REGISTER must be submitted to the CENTRAL BANK using the model provided in Annex 1.

  2. The application must include: a) proof of possession of the requirements referred to in Articles 6, 7, and 8; b) the activity program and report on organizational structure; c) a declaration of independence; d) proof of professional indemnity insurance as referred to in Article 20.

  3. The CENTRAL BANK may request additional information or documentation to assess the application.

  4. Applications must be submitted in Italian. If documents are in a foreign language, they must be translated into Italian by a sworn translator.

Article 12 – Measures by the Central Bank

  1. The CENTRAL BANK shall examine the application within 60 days from the date of receipt of a complete application.

  2. If the application meets all requirements, the CENTRAL BANK shall register the INDEPENDENT FINANCIAL ADVISOR in the appropriate section of the REGISTER.

  3. If the application does not meet all requirements, the CENTRAL BANK shall reject the application, providing reasons for the rejection.

  4. The INDEPENDENT FINANCIAL ADVISOR may appeal the rejection to the Central Bank Board within 30 days from the date of notification of the rejection.

  5. The decision of the Central Bank Board is final.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 13

Chapter IV Suspension and deletion from the register

Article 13 – Suspension upon request by the party

  1. An INDEPENDENT FINANCIAL ADVISOR may request suspension from the REGISTER for justified reasons.

  2. The request must be submitted in writing to the CENTRAL BANK.

  3. The CENTRAL BANK shall approve the suspension and update the REGISTER accordingly.

  4. The INDEPENDENT FINANCIAL ADVISOR may request re-registration at any time, provided that they still meet the requirements for registration.

Article 14 – Suspension ex officio

  1. The CENTRAL BANK may suspend an INDEPENDENT FINANCIAL ADVISOR from the REGISTER if: a) the INDEPENDENT FINANCIAL ADVISOR fails to meet the requirements for registration; b) the INDEPENDENT FINANCIAL ADVISOR violates the provisions of this Regulation or other applicable laws; c) the INDEPENDENT FINANCIAL ADVISOR is subject to a criminal investigation or conviction; d) the INDEPENDENT FINANCIAL ADVISOR fails to comply with a request for information or documentation from the CENTRAL BANK.

  2. The CENTRAL BANK shall notify the INDEPENDENT FINANCIAL ADVISOR of the suspension and provide reasons for it.

  3. The INDEPENDENT FINANCIAL ADVISOR may appeal the suspension to the Central Bank Board within 30 days from the date of notification.

Article 15 – Deletion upon request by the party

  1. An INDEPENDENT FINANCIAL ADVISOR may request deletion from the REGISTER.

  2. The request must be submitted in writing to the CENTRAL BANK.

  3. The CENTRAL BANK shall approve the deletion and update the REGISTER accordingly.

  4. The INDEPENDENT FINANCIAL ADVISOR may request re-registration at any time, provided that they still meet the requirements for registration.

Article 16 – Deletion ex officio

  1. The CENTRAL BANK shall delete an INDEPENDENT FINANCIAL ADVISOR from the REGISTER if: a) the INDEPENDENT FINANCIAL ADVISOR requests deletion; b) the INDEPENDENT FINANCIAL ADVISOR ceases to exist or ceases to operate; c) the INDEPENDENT FINANCIAL ADVISOR is convicted of a crime involving fraud, dishonesty, or moral turpitude; d) the INDEPENDENT FINANCIAL ADVISOR fails to renew their registration as required.

  2. The CENTRAL BANK shall notify the INDEPENDENT FINANCIAL ADVISOR of the deletion and provide reasons for it.

Article 17 – Procedure and effects of suspension and deletion measures

  1. Suspension and deletion measures shall be recorded in the REGISTER.

  2. During the period of suspension, the INDEPENDENT FINANCIAL ADVISOR shall not exercise INDEPENDENT FINANCIAL ADVICE.

  3. Deletion from the REGISTER shall result in the prohibition of exercising INDEPENDENT FINANCIAL ADVICE.

  4. INDEPENDENT FINANCIAL ADVISORS who are suspended or deleted may appeal the measures to the Central Bank Board within 30 days from the date of notification.

  5. The decision of the Central Bank Board is final.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 15

  1. The CENTRAL BANK shall publish a list of suspended and deleted INDEPENDENT FINANCIAL ADVISORS on its website.

  2. INDEPENDENT FINANCIAL ADVISORS who are suspended or deleted shall return any certificates of registration issued by the CENTRAL BANK.

  3. The CENTRAL BANK may impose sanctions on INDEPENDENT FINANCIAL ADVISORS who fail to comply with suspension or deletion measures.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 16

TITLE III RULES OF CONDUCT AND ORGANIZATION

Chapter I General provisions

Article 18 – General rules of conduct, organization and responsibility

  1. INDEPENDENT FINANCIAL ADVISORS must exercise their activities with honesty, professionalism, and integrity.

  2. INDEPENDENT FINANCIAL ADVISORS must act in the best interests of their clients and avoid any conflict of interest.

  3. INDEPENDENT FINANCIAL ADVISORS must maintain adequate organizational structures and internal controls to ensure compliance with this Regulation.

  4. INDEPENDENT FINANCIAL ADVISORS must designate a compliance officer responsible for monitoring compliance with this Regulation.

  5. INDEPENDENT FINANCIAL ADVISORS must keep accurate and complete records of their activities and transactions.

  6. INDEPENDENT FINANCIAL ADVISORS must cooperate with the CENTRAL BANK in the exercise of its supervisory functions.

  7. INDEPENDENT FINANCIAL ADVISORS must promptly notify the CENTRAL BANK of any significant events that may affect their ability to comply with this Regulation.

  8. INDEPENDENT FINANCIAL ADVISORS must ensure that their employees and agents comply with this Regulation.

  9. INDEPENDENT FINANCIAL ADVISORS must provide their clients with clear and transparent information about their services, fees, and conflicts of interest.

  10. INDEPENDENT FINANCIAL ADVISORS must obtain written consent from their clients before providing services.

  11. INDEPENDENT FINANCIAL ADVISORS must keep client information confidential, except where disclosure is required by law or with the client's consent.

  12. INDEPENDENT FINANCIAL ADVISORS must implement policies and procedures to prevent money laundering and terrorist financing.

  13. INDEPENDENT FINANCIAL ADVISORS must report suspicious transactions to the relevant authorities.

  14. INDEPENDENT FINANCIAL ADVISORS must maintain professional indemnity insurance as required by Article 20.

  15. INDEPENDENT FINANCIAL ADVISORS must participate in professional development activities as required by Article 19.

  16. INDEPENDENT FINANCIAL ADVISORS must comply with all applicable laws and regulations.

  17. INDEPENDENT FINANCIAL ADVISORS must not engage in any activity that may damage the reputation of the profession.

  18. INDEPENDENT FINANCIAL ADVISORS must not make false or misleading statements about their services or qualifications.

  19. INDEPENDENT FINANCIAL ADVISORS must not solicit business through unfair or deceptive practices.

  20. INDEPENDENT FINANCIAL ADVISORS must not discriminate against clients based on race, gender, religion, or other protected characteristics.

  21. INDEPENDENT FINANCIAL ADVISORS must respect the privacy and dignity of their clients.

  22. INDEPENDENT FINANCIAL ADVISORS must not exploit their clients' lack of knowledge or experience.

  23. INDEPENDENT FINANCIAL ADVISORS must not recommend financial products that are unsuitable for their clients.

  24. INDEPENDENT FINANCIAL ADVISORS must not charge fees that are excessive or unfair.

  25. INDEPENDENT FINANCIAL ADVISORS must not accept gifts or incentives from product providers that may compromise their independence.

  26. INDEPENDENT FINANCIAL ADVISORS must not engage in insider trading or market manipulation.

  27. INDEPENDENT FINANCIAL ADVISORS must not disclose non-public information about their clients or the market.

  28. INDEPENDENT FINANCIAL ADVISORS must not engage in any activity that may compromise the integrity of the financial markets.

  29. INDEPENDENT FINANCIAL ADVISORS must not engage in any activity that may harm the interests of their clients.

  30. INDEPENDENT FINANCIAL ADVISORS must not engage in any activity that may damage the reputation of the Central Bank or the financial sector.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 20

Article 19 – Professional updating

  1. INDEPENDENT FINANCIAL ADVISORS must participate in continuous professional development activities to maintain and enhance their professional competence.

  2. The CENTRAL BANK may specify the minimum number of hours of professional development required annually.

  3. INDEPENDENT FINANCIAL ADVISORS must keep records of their professional development activities and make them available to the CENTRAL BANK upon request.

  4. INDEPENDENT FINANCIAL ADVISORS must ensure that their employees and agents also participate in professional development activities.

  5. The CENTRAL Bank may require INDEPENDENT FINANCIAL ADVISORS to pass examinations or assessments to verify their professional competence.

  6. Failure to comply with professional development requirements may result in suspension or deletion from the REGISTER.

Article 20 – Insurance policy

  1. INDEPENDENT FINANCIAL ADVISORS must maintain professional indemnity insurance to cover liabilities arising from their activities.

  2. The insurance policy must be issued by an insurer authorized to operate in San Marino or in a jurisdiction recognized by the CENTRAL BANK.

  3. The coverage amount must be adequate to cover the potential liabilities of the INDEPENDENT FINANCIAL ADVISOR.

  4. INDEPENDENT FINANCIAL ADVISORS must provide proof of insurance to the CENTRAL BANK upon request.

  5. INDEPENDENT FINANCIAL ADVISORS must notify the CENTRAL BANK of any changes in their insurance coverage.

  6. Failure to maintain adequate insurance may result in suspension or deletion from the REGISTER.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 21

Chapter II Information, contracts and recommendations

Article 21 – Rules for presentation and information on the independent financial advisor and related services

  1. INDEPENDENT FINANCIAL ADVISORS must provide clear and accurate information about their identity, qualifications, and services.

  2. Information must be presented in a manner that is easily understandable by clients.

  3. INDEPENDENT FINANCIAL ADVISORS must disclose any conflicts of interest that may affect their advice.

  4. INDEPENDENT FINANCIAL ADVISORS must disclose their fee structure and any other charges associated with their services.

  5. INDEPENDENT FINANCIAL ADVISORS must provide clients with a summary of their services, including the scope and limitations of their advice.

  6. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the risks associated with financial products.

  7. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the performance of financial products.

  8. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the sustainability characteristics of financial products, if applicable.

  9. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the regulatory framework governing their activities.

  10. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about their rights and obligations.

  11. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the complaint resolution process.

  12. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the data protection policies.

  13. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the confidentiality of their information.

  14. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the duration of their services.

  15. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the termination of their services.

  16. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the consequences of terminating their services.

  17. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the transfer of their services to another provider.

  18. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the availability of alternative dispute resolution mechanisms.

  19. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the supervision by the CENTRAL BANK.

  20. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the register of INDEPENDENT FINANCIAL ADVISORS.

  21. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to access their personal data.

  22. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to rectify their personal data.

  23. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to erase their personal data.

  24. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to restrict the processing of their personal data.

  25. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to data portability.

  26. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to object to the processing of their personal data.

  27. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to withdraw their consent to the processing of their personal data.

  28. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to lodge a complaint with the supervisory authority.

  29. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to seek judicial remedy.

  30. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to compensation for damages.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 23

Article 22 – Independent financial advisory contract

  1. INDEPENDENT FINANCIAL ADVISORS must enter into a written contract with their clients before providing services.

  2. The contract must clearly specify the services to be provided, the fees, and the duration of the engagement.

  3. The contract must include a statement of independence and a disclosure of any conflicts of interest.

  4. The contract must include a clause on confidentiality and data protection.

  5. The contract must include a clause on the termination of the engagement and the consequences thereof.

  6. The contract must include a clause on the dispute resolution mechanism.

  7. The contract must be signed by both parties and kept by the INDEPENDENT FINANCIAL ADVISOR.

  8. INDEPENDENT FINANCIAL ADVISORS must provide a copy of the contract to the client.

  9. INDEPENDENT FINANCIAL ADVISORS must update the contract if there are any changes in the services, fees, or other terms.

  10. INDEPENDENT FINANCIAL ADVISORS must obtain written consent from the client for any changes to the contract.

  11. INDEPENDENT FINANCIAL ADVISORS must keep the contract for at least five years after the termination of the engagement.

  12. INDEPENDENT FINANCIAL ADVISORS must make the contract available to the CENTRAL BANK upon request.

  13. INDEPENDENT FINANCIAL ADVISORS must ensure that the contract complies with all applicable laws and regulations.

  14. INDEPENDENT FINANCIAL ADVISORS must ensure that the contract is fair and transparent.

  15. INDEPENDENT FINANCIAL ADVISORS must ensure that the contract is understandable by the client.

  16. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has had the opportunity to ask questions and receive answers before signing the contract.

  17. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has understood the terms of the contract.

  18. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has voluntarily agreed to the terms of the contract.

  19. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has not been subjected to any undue influence or pressure.

  20. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with all necessary information to make an informed decision.

  21. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the risks associated with the services.

  22. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the costs and fees associated with the services.

  23. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the alternatives available.

  24. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the regulatory framework governing the services.

  25. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about their rights and obligations.

  26. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the complaint resolution process.

  27. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the data protection policies.

  28. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the confidentiality of their information.

  29. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the duration of the services.

  30. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the termination of the services.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 24

Article 23 – Acquisition of information from clients

  1. INDEPENDENT FINANCIAL ADVISORS must obtain sufficient information from their clients to provide suitable advice.

  2. The information must include the client's financial situation, investment experience, risk tolerance, and investment objectives.

  3. The information must also include the client's sustainability preferences, if any.

  4. INDEPENDENT FINANCIAL ADVISORS must update the information regularly and whenever there are significant changes in the client's circumstances.

  5. INDEPENDENT FINANCIAL ADVISORS must obtain the client's consent before collecting and processing their personal data.

  6. INDEPENDENT FINANCIAL ADVISORS must ensure that the information is accurate and complete.

  7. INDEPENDENT FINANCIAL ADVISORS must keep the information confidential, except where disclosure is required by law or with the client's consent.

  8. INDEPENDENT FINANCIAL ADVISORS must keep the information for at least five years after the termination of the engagement.

  9. INDEPENDENT FINANCIAL ADVISORS must make the information available to the CENTRAL BANK upon request.

  10. INDEPENDENT FINANCIAL ADVISORS must ensure that the information is used only for the purposes for which it was collected.

  11. INDEPENDENT FINANCIAL ADVISORS must ensure that the information is not disclosed to third parties without the client's consent.

  12. INDEPENDENT FINANCIAL ADVISORS must ensure that the information is protected against unauthorized access, loss, or destruction.

  13. INDEPENDENT FINANCIAL ADVISORS must ensure that the information is stored in a secure manner.

  14. INDEPENDENT FINANCIAL ADVISORS must ensure that the information is accessible to the client upon request.

  15. INDEPENDENT FINANCIAL ADVISORS must ensure that the client can correct any inaccuracies in the information.

  16. INDEPENDENT FINANCIAL ADVISORS must ensure that the client can erase the information if requested, subject to legal obligations.

  17. INDEPENDENT FINANCIAL ADVISORS must ensure that the client can restrict the processing of the information if requested.

  18. INDEPENDENT FINANCIAL ADVISORS must ensure that the client can object to the processing of the information if requested.

  19. INDEPENDENT FINANCIAL ADVISORS must ensure that the client can withdraw their consent to the processing of the information if requested.

  20. INDEPENDENT FINANCIAL ADVISORS must ensure that the client can lodge a complaint with the supervisory authority if they believe their rights have been violated.

  21. INDEPENDENT FINANCIAL ADVISORS must ensure that the client can seek judicial remedy if they believe their rights have been violated.

  22. INDEPENDENT FINANCIAL ADVISORS must ensure that the client can seek compensation for damages if they believe their rights have been violated.

  23. INDEPENDENT FINANCIAL ADVISORS must ensure that the client is informed about their rights regarding the processing of their personal data.

  24. INDEPENDENT FINANCIAL ADVISORS must ensure that the client is informed about the purposes for which their personal data is processed.

  25. INDEPENDENT FINANCIAL ADVISORS must ensure that the client is informed about the recipients of their personal data.

  26. INDEPENDENT FINANCIAL ADVISORS must ensure that the client is informed about the retention period of their personal data.

  27. INDEPENDENT FINANCIAL ADVISORS must ensure that the client is informed about the existence of automated decision-making, including profiling, and the logic involved.

  28. INDEPENDENT FINANCIAL ADVISORS must ensure that the client is informed about the safeguards in place to protect their personal data.

  29. INDEPENDENT FINANCIAL ADVISORS must ensure that the client is informed about the right to complain to the supervisory authority.

  30. INDEPENDENT FINANCIAL ADVISORS must ensure that the client is informed about the right to seek judicial remedy.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 27

Article 24 – Classification of clients

  1. INDEPENDENT FINANCIAL ADVISORS must classify their clients as retail or professional clients.

  2. The classification must be based on the criteria set out in the LISF and BCSM Regulation No. 2024-05.

  3. INDEPENDENT FINANCIAL ADVISORS must obtain the client's consent to be classified as a professional client.

  4. INDEPENDENT FINANCIAL ADVISORS must provide retail clients with a higher level of protection than professional clients.

  5. INDEPENDENT FINANCIAL ADVISORS must review the classification of clients regularly and whenever there are significant changes in their circumstances.

  6. INDEPENDENT FINANCIAL ADVISORS must keep records of the classification of clients.

  7. INDEPENDENT FINANCIAL ADVISORS must make the records available to the CENTRAL BANK upon request.

  8. INDEPENDENT FINANCIAL ADVISORS must ensure that the classification is fair and transparent.

  9. INDEPENDENT FINANCIAL ADVISORS must ensure that the classification is understandable by the client.

  10. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has had the opportunity to ask questions and receive answers before being classified.

  11. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has understood the implications of the classification.

  12. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has voluntarily agreed to the classification.

  13. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has not been subjected to any undue influence or pressure.

  14. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with all necessary information to make an informed decision.

  15. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the risks associated with the classification.

  16. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the costs and fees associated with the classification.

  17. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the alternatives available.

  18. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the regulatory framework governing the classification.

  19. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about their rights and obligations.

  20. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the complaint resolution process.

  21. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the data protection policies.

  22. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the confidentiality of their information.

  23. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the duration of the classification.

  24. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the termination of the classification.

  25. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the consequences of terminating the classification.

  26. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the transfer of the classification to another provider.

  27. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the availability of alternative dispute resolution mechanisms.

  28. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the supervision by the CENTRAL BANK.

  29. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the register of INDEPENDENT FINANCIAL ADVISORS.

  30. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the rights of clients to access their personal data.

Article 25 – Information on admitted financial activities

  1. INDEPENDENT FINANCIAL ADVISORS must provide clients with accurate and comprehensive information about admitted financial activities.

  2. The information must include the nature, risks, and potential returns of the financial activities.

  3. The information must be presented in a manner that is easily understandable by clients.

  4. INDEPENDENT FINANCIAL ADVISORS must disclose any conflicts of interest related to the financial activities.

  5. INDEPENDENT FINANCIAL ADVISORS must disclose the fees and charges associated with the financial activities.

  6. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the performance of the financial activities.

  7. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the sustainability characteristics of the financial activities, if applicable.

  8. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the regulatory framework governing the financial activities.

  9. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about their rights and obligations regarding the financial activities.

  10. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the complaint resolution process.

  11. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the data protection policies.

  12. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the confidentiality of their information.

  13. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the duration of the financial activities.

  14. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the termination of the financial activities.

  15. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the consequences of terminating the financial activities.

  16. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the transfer of the financial activities to another provider.

  17. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the availability of alternative dispute resolution mechanisms.

  18. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the supervision by the CENTRAL BANK.

  19. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the register of INDEPENDENT FINANCIAL ADVISORS.

  20. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to access their personal data.

  21. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to rectify their personal data.

  22. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to erase their personal data.

  23. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to restrict the processing of their personal data.

  24. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to data portability.

  25. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to object to the processing of their personal data.

  26. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to withdraw their consent to the processing of their personal data.

  27. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to lodge a complaint with the supervisory authority.

  28. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to seek judicial remedy.

  29. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to compensation for damages.

  30. INDEPENDENT FINANCIAL ADVISORS must ensure that the information is up-to-date and accurate.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 28

Article 26 – Information on costs and related charges

  1. INDEPENDENT FINANCIAL ADVISORS must provide clients with clear and transparent information about all costs and charges associated with their services.

  2. The information must include the fees for advice, transaction costs, and any other charges.

  3. The information must be presented in a manner that is easily understandable by clients.

  4. INDEPENDENT FINANCIAL ADVISORS must disclose any conflicts of interest related to the costs and charges.

  5. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the performance of the services in relation to the costs.

  6. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the sustainability characteristics of the services, if applicable.

  7. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the regulatory framework governing the costs and charges.

  8. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about their rights and obligations regarding the costs and charges.

  9. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the complaint resolution process.

  10. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the data protection policies.

  11. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the confidentiality of their information.

  12. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the duration of the costs and charges.

  13. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the termination of the costs and charges.

  14. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the consequences of terminating the costs and charges.

  15. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the transfer of the costs and charges to another provider.

  16. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the availability of alternative dispute resolution mechanisms.

  17. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the supervision by the CENTRAL BANK.

  18. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the register of INDEPENDENT FINANCIAL ADVISORS.

  19. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to access their personal data.

  20. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to rectify their personal data.

  21. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to erase their personal data.

  22. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to restrict the processing of their personal data.

  23. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to data portability.

  24. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to object to the processing of their personal data.

  25. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to withdraw their consent to the processing of their personal data.

  26. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to lodge a complaint with the supervisory authority.

  27. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to seek judicial remedy.

  28. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to compensation for damages.

  29. INDEPENDENT FINANCIAL ADVISORS must ensure that the information is up-to-date and accurate.

  30. INDEPENDENT FINANCIAL ADVISORS must ensure that the costs and charges are fair and reasonable.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 30

Article 27 – Adequacy assessment

  1. INDEPENDENT FINANCIAL ADVISORS must assess the adequacy of their advice to the client's financial situation, investment experience, risk tolerance, and investment objectives.

  2. The assessment must be documented and kept by the INDEPENDENT FINANCIAL ADVISOR.

  3. INDEPENDENT FINANCIAL ADVISORS must update the assessment regularly and whenever there are significant changes in the client's circumstances.

  4. INDEPENDENT FINANCIAL ADVISORS must obtain the client's consent before providing advice that is not adequate.

  5. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the risks associated with the advice.

  6. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the costs and charges associated with the advice.

  7. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the alternatives available.

  8. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the regulatory framework governing the advice.

  9. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about their rights and obligations regarding the advice.

  10. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the complaint resolution process.

  11. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the data protection policies.

  12. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the confidentiality of their information.

  13. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the duration of the advice.

  14. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the termination of the advice.

  15. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the consequences of terminating the advice.

  16. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the transfer of the advice to another provider.

  17. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the availability of alternative dispute resolution mechanisms.

  18. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the supervision by the CENTRAL BANK.

  19. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the register of INDEPENDENT FINANCIAL ADVISORS.

  20. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to access their personal data.

  21. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to rectify their personal data.

  22. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to erase their personal data.

  23. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to restrict the processing of their personal data.

  24. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to data portability.

  25. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to object to the processing of their personal data.

  26. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to withdraw their consent to the processing of their personal data.

  27. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to lodge a complaint with the supervisory authority.

  28. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to seek judicial remedy.

  29. INDEPENDENT FINANCIAL ADVISORS must provide clients with information about the rights of clients to compensation for damages.

  30. INDEPENDENT FINANCIAL ADVISORS must ensure that the assessment is fair and transparent.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 32

Article 28 – Duty to account

  1. INDEPENDENT FINANCIAL ADVISORS must provide clients with regular accounts of their services and transactions.

  2. The accounts must be clear and accurate.

  3. The accounts must include all fees and charges.

  4. INDEPENDENT FINANCIAL ADVISORS must provide the accounts in a format that is easily understandable by clients.

  5. INDEPENDENT FINANCIAL ADVISORS must provide the accounts at least annually.

  6. INDEPENDENT FINANCIAL ADVISORS must provide the accounts upon request by the client.

  7. INDEPENDENT FINANCIAL ADVISORS must keep the accounts for at least five years after the termination of the engagement.

  8. INDEPENDENT FINANCIAL ADVISORS must make the accounts available to the CENTRAL BANK upon request.

  9. INDEPENDENT FINANCIAL ADVISORS must ensure that the accounts are fair and transparent.

  10. INDEPENDENT FINANCIAL ADVISORS must ensure that the accounts are understandable by the client.

  11. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has had the opportunity to ask questions and receive answers before accepting the accounts.

  12. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has understood the terms of the accounts.

  13. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has voluntarily agreed to the terms of the accounts.

  14. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has not been subjected to any undue influence or pressure.

  15. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with all necessary information to make an informed decision.

  16. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the risks associated with the accounts.

  17. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the costs and fees associated with the accounts.

  18. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the alternatives available.

  19. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the regulatory framework governing the accounts.

  20. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about their rights and obligations.

  21. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the complaint resolution process.

  22. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the data protection policies.

  23. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the confidentiality of their information.

  24. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the duration of the accounts.

  25. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the termination of the accounts.

  26. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the consequences of terminating the accounts.

  27. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the transfer of the accounts to another provider.

  28. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the availability of alternative dispute resolution mechanisms.

  29. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the supervision by the CENTRAL BANK.

  30. INDEPENDENT FINANCIAL ADVISORS must ensure that the client has been provided with information about the register of INDEPENDENT FINANCIAL ADVISORS.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 32

Chapter III Requirements and methods for compliance with information obligations

Article 29 – General requirements for information and conditions for correct, clear and non-misleading information

  1. All information provided by INDEPENDENT FINANCIAL ADVISORS must be correct, clear, and not misleading.

  2. Information must be presented in a manner that is easily understandable by clients.

  3. Information must be complete and balanced, providing both positive and negative aspects.

  4. Information must be up-to-date and accurate.

  5. Information must not omit material facts that could influence the client's decision.

  6. Information must not exaggerate the benefits or minimize the risks of financial products.

  7. Information must not use technical jargon that may confuse clients.

  8. Information must be consistent with the advice provided.

  9. Information must be consistent with the contract signed by the client.

  10. Information must be consistent with the regulatory framework governing the activities.

  11. Information must be consistent with the ethical standards of the profession.

  12. Information must be consistent with the best interests of the client.

  13. Information must be consistent with the independence of the INDEPENDENT FINANCIAL ADVISOR.

  14. Information must be consistent with the confidentiality of the client's information.

  15. Information must be consistent with the data protection policies.

  16. Information must be consistent with the complaint resolution process.

  17. Information must be consistent with the supervision by the CENTRAL BANK.

  18. Information must be consistent with the register of INDEPENDENT FINANCIAL ADVISORS.

  19. Information must be consistent with the rights of clients to access their personal data.

  20. Information must be consistent with the rights of clients to rectify their personal data.

  21. Information must be consistent with the rights of clients to erase their personal data.

  22. Information must be consistent with the rights of clients to restrict the processing of their personal data.

  23. Information must be consistent with the rights of clients to data portability.

  24. Information must be consistent with the rights of clients to object to the processing of their personal data.

  25. Information must be consistent with the rights of clients to withdraw their consent to the processing of their personal data.

  26. Information must be consistent with the rights of clients to lodge a complaint with the supervisory authority.

  27. Information must be consistent with the rights of clients to seek judicial remedy.

  28. Information must be consistent with the rights of clients to compensation for damages.

  29. Information must be consistent with the sustainability preferences of the client, if any.

  30. Information must be consistent with the risks associated with the financial products.

Central Bank of the Republic of San Marino Regulation No. 2025-02 on Independent Financial Advisors – Update I 34

Article 30 – Methods for compliance with information obligations

  1. INDEPENDENT FINANCIAL ADVISORS must use various methods to provide information to clients, including written, oral, and electronic formats.

  2. Written information must be provided in a durable medium.

  3. Oral information must be confirmed in writing upon request by the client.

  4. Electronic information must be provided via a secure website or email.

  5. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are accessible to all clients.

  6. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are understandable by all clients.

  7. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are consistent with the regulatory framework governing the activities.

  8. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are consistent with the ethical standards of the profession.

  9. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are consistent with the best interests of the client.

  10. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are consistent with the independence of the INDEPENDENT FINANCIAL ADVISOR.

  11. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are consistent with the confidentiality of the client's information.

  12. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are consistent with the data protection policies.

  13. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are consistent with the complaint resolution process.

  14. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are consistent with the supervision by the CENTRAL BANK.

  15. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are consistent with the register of INDEPENDENT FINANCIAL ADVISORS.

  16. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are consistent with the rights of clients to access their personal data.

  17. INDEPENDENT FINANCIAL ADVISORS must ensure that the methods used are consistent with the rights of clients to rectify their personal data.

  18. INDEPENDENT FINANCIAL ADVIS

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