FSA License - What's It Worth?

dhjjessel · Jul 13, 2011

I have a friend who is trying to sell a small FSA-licensed company. The company really doesnt have a particularly fantastic client base, and any buyer that came in would bring in all new clients, I imagine. The only real value the company has is the FSA license, so my question is, what would a trader pay for such a company, such that they could then trade their clients' money etc....
If anyone knows anything about this or maybe has someone who might want to buy the company, send me an email

[email protected]

Pazienza · Jul 13, 2011

dhjjessel said:
I have a friend who is trying to sell a small FSA-licensed company. The company really doesnt have a particularly fantastic client base, and any buyer that came in would bring in all new clients, I imagine. The only real value the company has is the FSA license, so my question is, what would a trader pay for such a company, such that they could then trade their clients' money etc....
If anyone knows anything about this or maybe has someone who might want to buy the company, send me an email

[email protected]

Licence for what?

dhjjessel · Jul 13, 2011

Pazienza said:
Licence for what?

well, they are fully FSA regulated - so i'm guessing the license is for trading other people's money?

Pazienza · Jul 13, 2011

dhjjessel said:
well, they are fully FSA regulated - so i'm guessing the license is for trading other people's money?

It's no good guessing - FSA regulation and authorisation is highly specific and if you step outside it you will get absolutely a$$-raped by them, whether or not there is any client detriment. You need to get more details.

andycon · Jul 13, 2011

An FSA license consists of permissions, so it will depend on what permissions they have applied for, been granted and pay for every year. The permissions may also have been granted based on your friends qualifications and experiences, so if he leaves the company the FSA may revoke those permissions unless you can demonstrate that the company still qualifies to hold them.

pboyles · Jul 13, 2011

dhjjessel said:
I have a friend who is trying to sell a small FSA-licensed company. The company really doesnt have a particularly fantastic client base, and any buyer that came in would bring in all new clients, I imagine. The only real value the company has is the FSA license, so my question is, what would a trader pay for such a company, such that they could then trade their clients' money etc....
If anyone knows anything about this or maybe has someone who might want to buy the company, send me an email

[email protected]

This article touches on it.

http://www.lexology.com/library/detail.aspx?g=ef42778a-8708-4c7c-adbe-337049b542e1

dhjjessel · Jul 13, 2011

pboyles said:
This article touches on it.

http://www.lexology.com/library/detail.aspx?g=ef42778a-8708-4c7c-adbe-337049b542e1

They have a full FSA advisory license to virtually trade any asset class via the following products: CFDs,FX,Shares, bonds, futures, options and commodities. They can trade with retail, professional and full counter parties as clients

FSA License - What's It Worth?

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