Operating models

Operating models refer to the framework or structure that describes how Upvest operates and delivers its products and services. It includes the processes, resources and technologies used to implement the operating strategy and achieve the objectives.

Upvest's operating models define the legal and functional framework for the product. Defining the setup before integrating with the Investment API is essential as API specifications and business processes vary (e.g., depending on account structure).

In this chapter you will learn about the three standard operating models that Upvest offers; we will also show you the differences between these models.

Upvest standard operating models

Upvest allows you to embed investment experiences into your offering and help your users take control of their wealth. With our Investment API and digital infrastructure, we can take care of everything required to enable your investment offering and custody management.

You decide what Upvest should do for you by choosing an operating model that can include brokerage, settlement, custody, pan-European licenses, etc. - all with fully automated operations.

In this section, you will find out which operating models we offer and which services you can expect.

Upvest basically offers three different operating models:

Upvest standard operating models

Legal setup

Clients have the flexibility to choose a legal setup, either by using their own licenses or license coverage through Upvest.

Take our license (TOL)

Upvest provides full legal coverage across brokerage, settlement, and custody.
Fast go-to-market with licenses across Europe and coverage of regulatory and compliance requirements (e.g., for MiFID II)
Contractual relationship exists between end users and Upvest as the custodian.

Bring your own license (BYOL)

Contractual relationship exists between end-users and you as a intermediary custodian as well as you and Upvest acting as custodian.
The client as a regulated investment firm or bank apply their own licenses.
Upvest supports you on fulfilling regulatory and compliance requirements (e.g., support in creation of required regulatory reports).

Functional setup

Clients can choose the functional setup that best suits their functional needs - either a single accounts setup or Omnibus account setup for their end-user securities ledgering, based on their functional needs. For example, in the omnibus configuration, the end-user ledgering has to be created by the clients, as Upvest has no viewability.

Single Accounts

Upvest provides end user level functionality across brokerage, settlement, and custody.
The clients create individual end user securities accounts via the Investment API.
Clients benefit from full securities accounting, tax processing, MiFID-compliant end user and regulatory reporting, as well as engaging end user product functionalities, such as portfolios and savings plans.

Omnibus

Upvest provides Omnibus account level functionality for brokerage, settlement, and custody.
Clients manage the sub-accounts of end user accounts that Upvest enables by providing real-time transaction data.

Next steps

The three operating models are discussed in more detail in the following chapters. You will learn about the legal and functional implications of each model and what services Upvest offers and to what extent.