FCA Appointed Representatives for DFM Platforms
Appointed Representative for Investment Analysts in a Post MiFID II Era
We provide regulatory cover for Investment Analysts and Researchers working independently of institutions. With the reduction in costs for research and aggressive competition following MiFID II, we specialise by working with independent analysts who are seeking a cost-effective solution to continue to produce and distribute search to investment managers throughout Europe.
Unlike other FCA regulatory hosting providers, we specialise in what we know, as the age old saying goes, 'we stick to our knitting'. This means, we not only add value in your day to day business with the introduction of new leads; but our AR model is competitively priced in that we know the business area, as well as you do. Moreover, we do not charge fluctuating fees, subject to your income/deal flow. Our model is a flat fee model, allowing you to effectively budget and forecast for your venture.
Why become Appointed Representative for your DFM platform business?
To set up as an FCA Appointed Representative (AR) you would need to demonstrate a sound business model and track record in investment research, that would instil confidence.
Whether you are currently an Appointed Representative looking to move to a new FCA Principal or simply thinking about making your move, we can help with a complete 'turnkey' solution, ranging from company formation, registered office and infrastructure support. If you are moving from another FCA principle firm, we do not charge an on-boarding fee.
The formal legal status of an Appointed Representative can be found on the FCA website by clicking here. We always recommend that those interested in the AR umbrella model read and understand the legal obligations.
We’re Here to Help if you…
- Want to get to market quicker as a regulated investment research provider;
- Need assistance in compliance and oversight, whilst having direct control and
- Want to focus on the growth of your investment research business;
- Are not happy with your current FCA Principle and want to work with someone more supportive towards your strategic direction;
- Are looking for a Principle with a wide range of FCA permissions to conduct your business;
- Want to launch your investment research services to European investment managers?
Our Objectives in Helping You…
- Help you grow and develop your investment research with like-minded partners and service providers;
- Give you peace of mind around compliance, software, financial promotions and ongoing regulatory requirements;
- Reduce your regulatory and infrastructure costs so you can focus on your core business;
- Ensure your financial stability by offering flexible working agreements;
- Enable you to work with your new and existing clients and partners with reassurance and confidence.
- Help you grow as a financial services firm.
Appointed Representative Vs Direct FCA Authorisation?
- No FCA returns or annual fees;
- No Capital Adequacy or Auditing Requirements;
- Access to XCAP’s compliance resources;
- Ongoing compliance training;
- No SMF16 or SMF17 requirements;
- We are your back office and compliance team, promoting industry best practice.
Direct Authorisation – Things to Consider:
At XCAP Global, we help our partners become directly authorised by the FCA when they feel the time is right. Here are some regulatory, compliance and financial considerations to think about when becoming directly authorised:
- Application process can take up to 12-18 months;
- Annually audited accounts by an independent auditor are required;
- Management & Forecast accounts will be required;
- A sound Compliance Framework is necessary;
- AML and Compliance Monitoring Programmes are required;
- Regulatory Capital must be posted;
- Dedicated personnel for compliance, anti-money laundering and regulatory functions are required;
- FSCS annual fees may be payable (depending on the firm's activities);
- Annual FCA fees may be payable;
- FCA GABRIEL reporting is required twice annually.
- Professional Indemnity and Directors' & Officers' Insurance