Partnership structure

[ThinkingAhead]

Hi all

I'm shortly going to be starting out on my own, in a finance brokerage, but I have the option to be associated with another company and use all of or some of their compliance, branding, infrastructure etc.
I need to firm up and agree with that company (in writing) what the partnership arrangement will look like between our two (ltd) companies, and how I will trade as a result ("trading as" with their branding for example), and how subsequently we will split fees etc.
I feel like before I enter into this discussion with the other company (which is owned by a long time friend) I need professional advice on how to approach it and what would be the best way for me to do it. Who would be able to give that advice? I want to have a private discussion rather than post full details on here, but I don't know if I should be speaking to my accountant, or to a business adviser? Or a lawyer?
Any help in pointing me in the right direction would be greatly appreciated...

Thanks

 

[ThinkingAhead]

@Kat Haylock do you think you could move this to "General" forum for me? I don't think this is really the right place for it in hindsight...

 

[Clinton]

I would speak with a lawyer. But you need to ensure you speak with the right type of lawyer. In your case I would recommend you seek someone who specialises in corporate law and more specifically someone familiar with the finance industry and FCA regs (as there is much scope here for things to go wrong)!

A recent client of mine used Mishcon de Reya for a deal with an FCA regulated company not far off from what you seeking to do.

Let there be no doubt that it's extremely complicated to put a deal like this together. Expect to pay very high fees. I believe my client paid in the region of £12K, but it could have been more.

 

[ThinkingAhead]

Thanks @Clinton I'll bear that in mind. I'm happy enough with the FCA part its more about the branding and commission splits part that I need help with. I have contacted a lawyer and will see what they come back with.

Thanks

 

[BTON Agency]

ThinkingAhead.

Are they directly regulated or under a network?

Chances are if they are under a network they have these agreements already in place such as you will have to use them.

If they are directly authorised, why not look to have your own agency under a network? As long as you have 6 months recent experience they are likely to take you (depending on the products you are selling).

The most important thing as i am sure you are aware is if they have an agreement in place, check who owns the clients should you leave and what happens to your drip.

 

[ThinkingAhead]

Are they directly regulated or under a network?

They are directly regulated

If they are directly authorised, why not look to have your own agency under a network? As long as you have 6 months recent experience they are likely to take you (depending on the products you are selling).

I'm not sure I understand what you mean here - are you suggesting that I create a network of appointed representatives? Second part seems to suggest someone needs to take me on...can you clarify?

 

[BTON Agency]

If you do not want to be directly regulated (which is very expensive and A LOT of paperwork) you can have your own agency under a network such a Tenet (or a number of others).

You pay a monthly subscription, but you usually keep all commission and fees but they take care of certain insurance, agency codes and compliance.

Its a cleaner (safer) way of doing it than under your friends firm. The people that usually work under another firm will have to give up between 20 - 50% commission and only do it if a network will not take them.

i am guessing, if you do not know these things you are maybe new to the industry?

What are you looking at selling?

If you would rather PM feel free. Will help you where i can.