Introducing Broker Agreement Fca

The ACF only regulates BIs and FCMs. FCMs must be approved by the ACF and all individual treatment agreements must include specific provisions for continued compliance with the FCA requirements. It is relatively easy to be a representative named FCA. To begin with, you need to have a site that is something we can help you, as custom forex website design is one of the services offered by Atomiq Consulting. You must also join a new business entity in the UK and create a bank account before obtaining FCA approval. The final step is to select a broker with whom a partnership should be entered into. Thanks to our extensive network of industry contacts, we offer you different opportunities for AR partnership. Special individual treatment explained that under UK law it is entirely possible to be sent to prison for up to 5 years if the client is referred to an unregulated FCA brokerage – and this by an unregulated regulator, i.e. not regulated by a recognised regulatory authority , deemed acceptable by the FCA for the referral of transactions to a British broker. As for financeFeeds discovering that there are companies in Britain that accept this, Mr.

Elston said, “If these brokers work with unauthorized IBs acting on behalf of clients, then that is a very bad practice.” When a clearing company knows or suspects that the activities of an introductory or foreign introductory broker may harm or harm its clients, it should take appropriate measures to address the situation and protect the interests of its clients as much as possible. It may be excluded that, in this context, the ACF`s decisions take into account the fact that the brokerage to which the transaction is referred is licensed fcA; therefore, the responsibility for intermediation is to implement the procedures of AML (Anti Money Laundering) and KYC (Know Your Client) before the commercial accounts are stopped on a live status. , and if this can be demonstrated at the ACF, it is satisfactory. Our well-developed relationships with future Commission Merchants (FCMs) help us establish and negotiate robust brokerage agreements for FCM companies and the introduction of brokers (IBs). For personalized advice, contact our business lawyers in London or contact us online on 0203 670 5540. LRs have constraints that they must meet the compliance standards of the partner company manager. Those who are interested in creating their own brokers may consider this a disadvantage, as they are not free to market or promote their services as they wish. An additional restriction is that some brokers may require the AR to disclose all email correspondence, external marketing materials and even keep their office in the same physical location as the brokerage office.

In addition, the broker hosting the AR may charge a monthly fee for the service because of the legal work required to establish the AR and maintain the authorization with the FCA. “There are those who work in value-added capacity like asset managers, and then there is the introduction of agents who are companies that import customers but do not act on their behalf,” Elston said. Find that the overseas real estate agent is licensed in his own country; The introduction of brokers licensed by the FCA can be seen as a step between an AR and a fully licensed brokerage. Although companies with IB licenses are not allowed to hold clients` money, they are free to work with as many brokers as they wish. In addition, IB can promote its services according to its own service, without having the last word of the roof intermediary. In short, an IB license offers more flexibility than an AR relationship. However, the trade-off is that it is more expensive and tedious to become an ACF-approved IB than to start in AR.