Find out which permissions to apply for in order to become authorised
Securities and futures adviser/arranger
The advisers/arrangers of securities and futures firms 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
The financial resource requirement for a non-MiFID arranger also giving advice is that they maintain financial resources in excess of the financial resources requirement as calculated in IPRU (INV) 3.61 and 3.70.
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.