Find out which permissions to apply for in order to become authorised.
An investment manager, asset manager or portfolio manager could have just one client, such as a fund, or they could offer a separate account service for professional and/or retail investors
The investment manager’s agreement (IMA) should list the services that correspond to their business plan and permissions that relate to the client(s).
Typical permissions required
- advising on investments
- arranging (bringing about) deals in investments
- agreeing to carry on regulated activities
- dealing in investments as an agent
- making arrangements with a view to transactions in investments
- managing investments
- controlling (but not holding) client money
Permissions sometimes required
Managers may also require the following permissions:
- arranging the safeguarding and administration of assets
- safeguarding and administering assets (accepting client assets)
Find out more about the permissions you might need and the terms being used. Please note that you will need to satisfy yourself, taking independent advice where necessary, on which permissions you need to conduct your business.
Financial resource requirement
Investment firms which come under MiFID regulation may also be subject to the requirements of the CRD (Capital Requirements Directive), an EU legislative directive covering prudential rules for banks, building societies and investment firms.
Whether a firm falls under the CRD’s scope depends on what regulated activities and business it is operating.
Most investment managers are likely to be classed as a BIPRU €50,000 firm. The €50,000 refers to the firm’s Base Capital Requirement; firms are also subject to a Variable Capital Requirement. There are exceptions, however.
Some investment managers may qualify for an Article 2 exemption from MiFID, and so would not be subject to the CRD. The exemption broadly applies to firms that only operate regulated activities for a collective investment scheme that it runs for itself.