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What's a Giro?

Kinderdijk Molens

Giro? In the sense of cycling in Italy and the old way of moneytransfers is understood. But what is the meaning of 'Giro ' if this name is used in the context of administering investments? This article makes an end to that ambiguity.

What is a Giro?

The word Giro has its origins in the Netherlands in the context of administering investments.

The name Giro is translated from Dutch to English in names such as: Investment Giro, Investor Giro, Securities Giro. The name Giro is also used for investments or investors administration for funds. In the Netherlands it's also used in the meaning of a Dutch Bewaarinstelling'. It becomes even more confusing that the name Giro is by a market party that act as a Giro, but as a Broker.

However, in the preceding paragraph, the name 'Giro ' is used for different legal structures for each legal structure, other conditions or requirements apply. As a result, there is a lot of confusion in the market with both financial institutions, consultants, employees at the regulating authorities and service providers such as IQ-EQ, giving advice and issuing proposals.

It is for each party a waste of the precious time if a decision is made on the basis of a wrong interpretation of the Giro structure. Therefore, the next definition for a Giro in the context of administering investments:

The name 'Giro' is a generic term used for a non-bank, administrative account on which investments and transaction are registered.

A Giro can be offered in the Netherlands, but also in the EU, on the basis of different legal structures. By structure, legal requirements and specific rules apply. The different structures and distinct laws and regulations are:

  • Investors Giro, Investment Giro, Securities Giro based on the Dutch Wft and MiFID II-
  • Holding assets of clients by the Asset Manager in combination with a 'Dutch Bewaarinstelling' for holding cash based on the Dutch Wge and MiFID II
  • Investment- and investors administration based on the Dutch Wft and MiFID II - AIMFD

IQ-EQ Investment Giro Services

IQ-EQ Netherlands is in the position that it can service all the afore mentioned structures of a Giro and satisfies all legal requirements, as sole non-banking institute in the Netherlands. As a name for its services for administering investments on a non-bank account, it uses: IQ-EQ Investment Giro Services.