Regulatory Hosting for Fund Distributors & Marketers
Regulatory Hosting for Fund Distributors
Regulated Funds and Alternative Investment Funds (AIFs) have seen an immense growth throughout Europe since 2010, with non-EEA managers and European managers seeking to actively raise capital from HNWs, professional and institutional investors.
With the rapid increase of funds, comes the requirement of effective distribution channels throughout Europe, to tap into investors that would otherwise not be available to the investment managers of respective funds.
Fund Distribution and Marketers have been affected by MiFID II, which was formally launched throughout Europe on 1st January 2018. MiFID II pushes the onus of marketing and fund distribution on the actual fund manager themselves and the marketing companies promoting them, by ensuring that the funds being promoted are indeed suitable for the respective investors. (See Client Categorisation)
Whilst Fund Distribution and Marketing is a highly lucrative business - it is a closely regulated activity throughout Europe.
Whether you are a currently a fund distributor, or looking at the idea to establishing your new venture following a successful career, we specialise in helping ventures like yours from early stage design, launch and regulatory hosting support - complete with managed compliance solutions.
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 Fund Distribution & Marketing business?
To set up as an FCA Appointed Representative (AR) you would need to demonstrate a sound business model and track record in fund distribution services that you would like to arrange or advise on.
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 Fund Distribution & Marketing firm;
- Need assistance in compliance and oversight, whilst having direct control and
- Want to focus on the growth of your Fund Distribution & Marketing 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 in UK & Europe
- Want to launch your Fund Distribution & Marketing services to European investors
Our Objectives in Helping You…
- Help you grow and develop your Fund Distribution & Marketing firm 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 Vantage Ventures' 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:
We help you become directly authorised by the FCA, as we consider this to be the natural progression for your entity as it matures. 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