Trading Regulations

[newguy123]

Hello,

This is my first post here but not my first time to the world of business so I hope to be able to answer some questions as well as ask them.

So I am starting a new company which will specialize in algorithmic trading of both traditional products and stocks (a little spot fx as well) as well as possibly some derivatives.

Now my questions are:
a) If I trade using only shareholders funds (i.e. mine being the sole director and share holder at present of the company) is FCA authorisation required?

b) By offering services to external companies to place trades for them is FSA authorisation required given the fact that I will not hold their funds or any client funds and will only be charging a management fee.

c) If the company(ies) I am offering management services to are based in a country (still EU) other than the United Kingdom am I required to be authorised by another regulator?

By the way, I have read the FSA website in detail but am still trying to fully understand it as I have been working on other aspects to date.



Obviously before I would commence trading I would seek legal advise from a professional but I would just like to know in advance whether I should expect to have to be authorised by the FCA as the cost of setting up dramatically increase.

Thanks in advance

 

[qul]

you can try checking with a compliance consultant such as http://www.fcasure.com/

these are very, very rough answers below without doublechecking anything!
a) probably not, but some firms dealing on own account still have to be authorised
b) management services are normally regulated activities, even if no client assets held. if not exempt from MiFD, you may also need an audit
c) if you get FCA authorised you may be able to use passporting. also, one of our clients is FCA authorised but is managing a fund in another EU country