Find out which permissions to apply for in order to become authorised.
Corporate finance adviser
Corporate finance firms are usually associated with transactions where capital is raised to create, develop, grow or acquire businesses, or in mergers and takeover transactions.
Typical permissions required
- advising on investments
- arranging deals in investments
- agreeing to carry on regulated activities
- making arrangements with a view to transactions in investments
A requirement will be added to the firm’s permission ‘not to conduct designated investment business other than corporate finance business’.
Financial resource requirement
The financial resource requirement for a non-MiFID corporate finance firm is that it must maintain tangible net worth and net assets greater than £10,000.
With the activities and requirement outlined above, firms will generally refer to IPRU(INV) Chapter 3 and not come under MiFID. There will also be the requirement not to hold or to control client money.
These firms can choose to be exempt from CAD (Capital Adequacy Directive) if they wish to run certain MiFID activities. Usually, this happens if they want to passport into EEA countries under the ‘reception and transmission of orders’ activity.
These firms can also fall under IFPRU (prudential sourcebook for investment firms) as well as BIPRU (prudential sourcebook for banks, building societies and investment firms) if they carry out certain MiFID activities.