Bring your own license - Omnibus

This operating model allows you to scale your investment services whilst owning the core of the investment tech stack.

INFO

These are the core benefits of the BYOL Omnibus model:

Clients want to use their own licences to provide investment services at scale (fractional trading, top level execution). Upvest acts as a intermediary custodian and trading gateway.
Clients want to build and manage the sub-account functionalities of the user accounts. Only trading and corporate actions processing is offered by Upvest.
Upvest enables the client to quickly scale their offering of new investments services.

Legal setup

The client provides legal coverage for brokerage, settlement and custody to the end user.

Setup	Upvest	Client	Application
Investment brokerage (RTO¹)		✓	The client distributes investments by accepting and transmitting orders from end users via their investment product (e.g., app).
Deposit taking or credit business		✓	The client keeps investor funds in debit and/or credit accounts.
Financial brokerage (EXO²)	✓	✓	The client places and executes orders on behalf of investors via Upvest.
Securities custody	✓	✓	The client maintains and safekeeps financial instruments via Upvest.
Crypto custody	Optional	Optional	The client or Upvest maintain and safekeep digital securities on the blockchain.
Proprietary trading (DOOA³)		✓	Upvest holds securities on its own book to offer fractional investments.
End user contractual relationship		✓	Upvest acts as the contractual counterparty for securities investment services.

¹ RTO = Reception & transmission of orders
² EXO = Execution of orders
³ DOOA = Dealing on own account

Functional setup

Upvest provides services for brokerage, settlement, and custody on the client's omnibus account.

In the following table you can see which services Upvest offers and which can be optionally offered by the customers or by Upvest, where applicable:

Functionality	Upvest	Client	Application of Investment API
End user & account management	✓		The client sets up securities accounts for end users via the API, submitting KYC checks to Upvest for verification.
Investment solutions	✓		The client creates and configures portfolios, savings plans and rebalancing logic via API to offer them to end users.
Order executions	✓		End users submit their orders via a client interface; Upvest executes (fractional) orders on the exchanges across all asset classes.
Payments & cash accounts	✓	Optional	End users provide or withdraw funds (from Upvest or client) through cash accounts via API integration and instructions.
Clearing, settlement & custody	✓		The client receives reconciled transactions for end users from Upvest including treasury reports for net buy/sell transfers.
Reporting (end user & regulatory)	✓		The client delivers end user/account statements, invoices, tax and regulatory reports to end users via the API; Upvest handles regulatory reporting.
Tax administration	✓		The client can transfer the proceeds minus taxes to the end users via the API, which are deducted and reported to the German tax authorities (may differ with international setup).
Corporate actions processing	✓		The client can offer digital corporate action processing for the end user via the API (e.g., dividend distributions to eligible end users).
Instrument & price data	✓	Optional	The client can use instrument data, price data, valuations and performance calculations via the API, and enrich them with additional data.
Client support	✓		The client receives support responses via the API for end user, account, reporting or transactions issues.