The FCA’s 11 Principles for Regulated Firms – Core Values
Financial Services Start-ups – Ensure you go to a Regulatory Hosting Firm with Integrity, the 1st FCA Principle.
Sturgeon Ventures having incubated people and firms for the past 20 years, prides its pioneered model of the Regulatory Incubator on focusing on the FCA’s 11 Principles at its core.
We therefore believe that the FCA were correct at highlighting the lack of due diligence that some of our competitors (newer entrants) operating as FCA Regulated Principals and working within the Regulatory Hosting framework, are showing.
Additionally, FCA Regulated Firms mentoring start-ups, who they should be guiding to embrace these Principles, don’t carry out due diligence themselves. Every year, one of the key messages to all FCA Regulated Firms, is that you must embed the Culture of Regulation into your team so they all adhere to the 11 Principles. I always say in training that it’s like the 10 Commandments and the 11th is confession. The 11th Principle is report to the Regulator what you believe they should know to keep the street clean.
We have heard of competitors who meet a potential start up client and register them without even having their permission. The regulated firm then calls up the start up, saying that they are now registered and can start business; whilst the start up may still be visiting other Principals to decide who to choose. The FCA put out an alert in late 2017 which should be adhered to by all those currently offering Appointed Representatives.
Furthermore, we have also heard that there are Principal Firms who take on Appointed Representatives who leave another Principal, where they were an AR and the new Principal does not take out references from the old Principal…
To read more on this topic on the FCA website, please click here: Considerations for Appointed Representatives.
Sturgeon Ventures are the most established Regulatory Incubator, a trusted partner and venture catalyst. Providing nurturing and bespoke solutions, also known as a Regulatory Umbrella, Regulatory Hosting Platform or a Regulatory Ecosystem.
With offices in both London and Hong Kong, Sturgeon has incubated people and firms since 1999 and has been a family office wealth advisor since 1998 . We have been nominated and won many awards including most recently 4 wins at the ACQ Awards 2017 – Europe, Regulatory Hosting Platform of the year, UK – Game Changer of the Year – Seonaid Mackenzie, UK – Family Office Wealth Advisor of the Year and International Business Strategy Consultancy of the Year; M&A Awards 2017 UK Compliance Consultancy – Start-up Issues and UK Adivsor of the Year – Seonaid Mackenzie, Best Regulatory Incubator 2017 and FinServ Gamechanger Innovation Award 2017 at the Acquisition International Magazine’s annual awards and HedgeWeek Awards Winner 2016 for Best Global Consultant in Business Strategy.
Sturgeon Ventures are proud to have signed up to HM Treasury’s Women in Finance Charter, since the start of this initiative in July 2016 and to contribute to industry publications such as Acquisition International and The Corporate Financier.
It’s founder, Seonaid Mackenzie, has also written a contributing chapter in “Successfully Launching A Hedge Fund In Europe: Practical Guidance For New Managers” on the subject of pioneering Regulatory Incubation.