Regulatory Hosting
Since 2001 we have incubated many start-up companies, including corporate finance boutiques, capital introduction companies and family office advisors. We have been a hosted solution for a number of different fund and managed account strategies, acting as the portfolio manager.
We assist through FCA application and continue with compliance monitoring and/or work with many known and reputable compliance advisory firms.
This paradigm shift for start-ups in financial services in the UK was created by Sturgeon Ventures in the year 2000, when the phrase Regulatory Incubator and now, Regulatory Umbrella began. In later years, others in the industry coined the phrase Regulatory Hosting Platform.
A regulatory hosting platform provides an opportunity for investment advisors and portfolio managers to carry out regulated activities with appropriate FCA permissions prior to, “the client firm” obtaining direct authorisation in its own right. The platform provider (the host firm), the incubator, allows its regulatory permissions to be used by the client firm to enable that firm to carry investment advisory and/or marketing services whilst allowing the client firm to retain its own identity, ownership and control. Portfolio Managers sit within the regulated firm, and advisors also sit within the regulated firm. The client firm, using it’s own branding, is set up as an Appointed Representative and can use permissions of the Principal Company to Arrange (introducing party A to party B) and give advice ONLY. A Directly Authorised Firm solely has the Permission to be an investment manager.
Regulatory Hosting – What other costs should you budget for?
Whether you use us or another provider the other costs usually associated with becoming an Appointed Representative Firm or an Introducer Appointed Representative Firm will include professional indemnity cover (we can guide you in arranging this), regulatory exams if deemed appropriate, discounted fees to the Chartered Institute for Securities & Investments for CPD (Sturgeon is a Corporate Member), legal fees with regard to the actual set-up and structure of your firm and your product. There are annual FCA Fees dependent on your turnover.
We are totally transparent in our fee structure and will tell you at the outset all costs involved. There will not be hidden extras or nasty surprises.
For further information on our Regulatory Hosting solution, please visit our Regulatory Incubation page.
Learn more about reporting requirements for Notification of the appointment of an appointed representative on this FCA page.
Read our article on AIMA – Is regulatory incubation distinct from regulatory hosting – and does it matter?
Understand what the FCA definition of a regulatory host is on their website glossary.
If you’d like further help or want to become an Appointed Representative working with an FCA Authorised Company, please contact Sturgeon Ventures:
T: 020 3167 4625
