Bring your own license - Omnibus
This operating model allows you to scale your investment services whilst owning the core of the investment tech stack.
Core benefits
- Use your own licences to provide investment services at scale (fractional trading, top level execution). Upvest acts as an intermediary custodian and trading gateway.
- You build and manage the sub-account functionalities of the user accounts. Only trading and corporate actions processing are offered by Upvest.
- Upvest enables you to quickly scale your offering of new investments services.
A typical Omnibus client has one account linked to one user and one account group. All these accounts are created by Upvest for the client. Once created, these are not normally updated.
Some Omnibus clients will have more than one account. This is due to the tax treatment of dividends (different domiciles).
Legal setup
You provide legal coverage for brokerage, settlement and custody to the end user.
| Setup | Upvest | Client | Application |
|---|---|---|---|
| Investment brokerage (RTO¹) | ✓ | You distribute investments by accepting and transmitting orders from end users via their investment product (e.g., app). | |
| Deposit taking or credit business | ✓ | You keep investor funds in debit and/or credit accounts. | |
| Financial brokerage (EXO²) | ✓ | ✓ | You place and execute orders on behalf of investors via Upvest. |
| Securities custody | ✓ | ✓ | You maintain and safekeep financial instruments via Upvest. |
| Crypto custody | Optional | Optional | You 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 your 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 | ✓ | You set up securities accounts for end users via the API, submitting KYC checks to Upvest for verification. | |
| Investment solutions | ✓ | You create and configure portfolios, savings plans and rebalancing logic via the API to offer them to end users. | |
| Order executions | ✓ | End users submit their orders via your interface; Upvest executes (fractional) orders on the exchanges across all asset classes. | |
| Payments & cash accounts | ✓ | End users provide or withdraw funds (from you or Upvest) through cash accounts via API integration and instructions. | |
| Clearing, settlement & custody | ✓ | You receive reconciled transactions for end users from Upvest including treasury reports for net buy/sell transfers. | |
| Reporting (end user & regulatory) | ✓ | ✓ | You deliver end user/account statements, invoices, tax and regulatory reports to end users via the API; Upvest handles regulatory reporting. |
| Tax administration | ✓ | You 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 | ✓ | You 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 | Optional | You can use instrument data, price data, valuations and performance calculations via the API, and enrich them with additional data. |
| Client support | ✓ | ✓ | You receive support responses via the API for end user, account, reporting or transactions issues. |