PAMM / fund management FCA authority

This is a discussion on PAMM / fund management FCA authority within the Trading Firms forums, part of the Trading Career category; What qualifications does a person need to be able to operate a Percent Allocation Management Module? Searching the FCA website ...

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Old Jul 5, 2014, 1:30pm   #1
 
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Joined Jul 2014
PAMM / fund management FCA authority

What qualifications does a person need to be able to operate a Percent Allocation Management Module?

Searching the FCA website is minefield.

Thanks for any help, if any more detail is required let me know.
TrendTrader17 is offline   Reply With Quote
Old Jul 5, 2014, 2:25pm   #2
Joined Mar 2014
Quote:
Originally Posted by TrendTrader17 View Post
What qualifications does a person need to be able to operate a Percent Allocation Management Module?

Searching the FCA website is minefield.

Thanks for any help, if any more detail is required let me know.
Hi Trend Trader

I agree, the FCA rule book is sometimes very difficult to understand with a 100% degree of certainty. It is because the guidelines can be ambiguous that most responsible operators will err on the side of caution with their interpretation. However this can sometimes cause different trading firms to require varying levels of assurance and evidence that 'money managers' are regulated to carry on what could be a regulated entity in their territory.

In most countries trading for 'friends and family' on a PAMM basis will NOT require you to be regulated but as soon as you expect a broker to begin paying you commissions for these trades you WILL have to be regulated.

This even happens to a lesser degree with plain vanilla introductions of clients to a broker. This regulated activity is know as arrangement and is becoming more and more policed.

To receive commissions and/or a share of any spread mark-ups from a regulated broker you will need to be regulated by your home regulator to carry out and market your services. This regulated activity is known as discretionary money management and requires a CF30 (controlled function 30) to carry out such activities.

The quickest and easiest way for you to become a CF30 is to find an existing regulated company which has the permissions you require to umbrella you. You will pay them a monthly compliance fee and a percentage of your rebate commissions (normally around 20%). They may also require a monthly minimum from you which would be around £1,000 - £2,000.

I've saved the best advice for last. Don't trade for friends and family.
highbury fx is offline   Reply With Quote
Thanks! The following members like this post: Forexmospherian , Trade2FI
Old Jul 5, 2014, 4:28pm   #3
 
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Joined Jul 2014
TrendTrader17 started this thread Thanks for the reply, and yes, I wholly agree with the latter sentence and wouldn't ever do so.

The Umbrella doesn't have as much regulatory resilience i.e. that could easily become a 'no-no' in the future.

How does one achieve the CF30? I don't include the FCA assessment of any company, just the qualifications as an individual to qualify.
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Old Jul 14, 2014, 3:16pm   #4
 
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Joined Oct 2006
Under a proper umbrella you can have the sufficient regulatory cover. If you are still interested please get in touch we me.
BAGGIES is offline   Reply With Quote
Old Oct 6, 2016, 10:22pm   #5
 
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Joined Oct 2016
looking for regulatory hosting companies

Is anyone aware of regulatory hosting/umbrella companies for carrying out discretionary portfolio management (managing investments), giving investment advice and arranging deals in investments in or outside of the UK with a passport in place to operate across Europe?
multistrat is offline   Reply With Quote
Old Feb 12, 2017, 10:31pm   #6
Joined Aug 2015
In the past i also looked in to trading a PAMM account, i did not contact the FCA or my country's regulator. However all the brokers i contacted told me it would require a regulation from my country, in my case it is FSMA in Belgium. Which is extremely hard to get. I guess that a regulation from a EU country would count across Europe.
I could open a PAMM account with an Australian broker but then it still would be illegal to provide my services to other people.
RubenDK is offline   Reply With Quote
Old Apr 21, 2017, 10:59am   #7
Joined Dec 2011
Money Managers

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Originally Posted by RubenDK View Post
In the past i also looked in to trading a PAMM account, i did not contact the FCA or my country's regulator. However all the brokers i contacted told me it would require a regulation from my country, in my case it is FSMA in Belgium. Which is extremely hard to get. I guess that a regulation from a EU country would count across Europe.
I could open a PAMM account with an Australian broker but then it still would be illegal to provide my services to other people.
Discretionary/ advisory are on the FCA radar and brokers need to have strong controls to avoid any pyramid-type structures. Overall, gaining a license has its costs and FCA will view the trading style spot FX is deemed high-risk and they will dig into the leverage, trading style etc
adilfx is offline   Reply With Quote
Old Jul 24, 2017, 4:39pm   #8
 
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Joined Jul 2017
what is the best way we speak in about this subject Mr BAGGIES ?

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Originally Posted by BAGGIES View Post
Under a proper umbrella you can have the sufficient regulatory cover. If you are still interested please get in touch we me.
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