Advisers and arrangers of wholesale funds: authorisation

Find out which permissions to apply for in order to become authorised.

Application fee

Category 4

Adviser/arranger of wholesale funds

An adviser/arranger may typically advise fund managers or other professional investors on the merits of investing in a particular fund, and then arrange for those investments to take place. They tend to offer advice to professional customers only.

They can carry out deals on behalf of their customers (which means they require the ‘arranging deals in investments’ permission), but the decision to invest must be made by the customer.

An adviser/arranger/marketer will provide information to investors on potential investment schemes, but may not offer advice on their merits.

Typical permissions required

  • advising on and arranging deals in investments
  • agreeing to carry on regulated activities
  • making arrangements with a view to transactions in investments

If you are intending to act purely as a marketer, you will not require permission to advise on investments. You will need only permissions to ‘make arrangements’ and ‘agree to carry out a regulated activity’.

Firms may also require the permission:

  • dealing in investments as agent

Financial resource requirement

Advisers/arrangers will typically either be MiFID investment firms subject to the prudential requirements in MIFIDPRU, or they will be Article 3 MiFID exempt firms subject to IPRU-INV.  

If the adviser/arranger is a MiFID investment firm subject to MIFIDPRU, its initial capital requirement will generally be £75,000.  

If a firm is an Article 3 MiFID exempt firm, its financial resource requirement will typically be detailed in IPRU(INV) Chapter 5.

 

Detailed information

MiFID  

For MiFID exemptions, see PERG 13.5 

See MIFIDPRU 

See IPRU(INV) Chapter 5

For more information on fees please see FEES 3 Annex 1A or pricing categories for application fees.

Page updates

04/01/2022: Information changed Updated to reflect the IFPR coming into force on 1 January 2022
15/12/2021: Information added IFPR update

06/08/2020: Link changed fixed broken link to Connect