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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3653
Experience:  Solicitors 2 years plus PQE
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I need a "legal opinion" to qualify me to become a money man

Resolved Question:

i need a "legal opinion" to qualify me to become a money manager and open a trading account where i can trade other peoples money
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. In order to do what you have proposed you need to comply with the Financial Services and Markets Act 2000. What you are proposing is potentially carrying out a regulated activity. In order to carry out a regulated activity you need to have authorization. The FCA is responsible for such authorisation - https://small-firms.fca.org.uk/authorisation . Do you have any specific questions on this? Kind regards AJ
Customer: replied 1 year ago.

Hi yes, my broker requests one of two thing:



  • Financial services license or legal opinion in the operating jurisdiction


In your opinion, which one of these is easier to obtain, and how would I go about getting one?

Expert:  Alex J. replied 1 year ago.
Hi, Thank you. If you are operating in the UK Jurisdiction then the only option is to obtain FCA Authorisation (i.e a license) - this costs about £1500 and can take up to 6 months. In the meantime there are companies and service providers that will charges fees in order provide you with the authorisation while you are waiting for your own. Can you tell me anything about the services you are providing, your client base (i.e consumer, business etc) and what you are investing in? Kind regards AJ
Customer: replied 1 year ago.

OK that makes sense. I am a currency trader, trading the forex market online. I have been trading for over 5 years. I already have people copying my trades through signalstart.com, however I want to open a money manager account through my broker icmarkets.com so then I can take on new clients with larger amounts to invest, as a result of any profit I make my clients I will take 30% of any new profit made and the investors keep 70%. This is the reason I need the licence but up until now I haven't needed one.

Expert:  Alex J. replied 1 year ago.
Thank you. The main issue that means you need regulation is the fact that you are taking deposits of other peoples money. This is the element that really means you need authorisation. As you have experience in the industry in all likelihood you should not have too many problems obtaining a authorisation. Can I assist you any further?
Customer: replied 1 year ago.

No, I think I have enough to be going on with for now. I will pursue the FCA authorization process and see how it goes. Thanks very much

Expert:  Alex J. replied 1 year ago.
Thank you. If you have any follow questions please do not hesitate to contact me? Kind regards AJ
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