Find out which permissions to apply for in order to become authorised.
Securities and futures adviser/arranger
Securities and futures firms that are are advisers/arrangers can recommend particular investment(s) to an investor.
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.
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
Permissions sometimes required
- dealing in investments as agent
Financial resource requirement
If a firm is a MiFID investment firm, it will be subject to the prudential requirements in MIFIDPRU (prudential sourcebook for investment firms).
For a non-MiFID arranger also giving advice (e.g. an Art 3 MiFID exempt firm subject to IPRU-INV 3), the financial resource requirement is that they maintain financial resources in excess of the financial resources requirement as calculated in IPRU (INV) 3.61 and 3.70.
To calculate the minimum financial resource requirement for a non-MiFID arranger also giving advice, see IPRU(INV) 3.61 and IPRU(INV) 3.70
For MiFID investment firms, see MIFIDPRU