Introduction

Buckingham Capital Consulting specialises in navigating the intricate regulatory landscape surrounding MiFID II for investment firms. Our team of experts has a comprehensive understanding of the complexities involved in obtaining FCA MiFID II authorisation. We excel in keeping up-to-date with the latest regulatory developments and can offer you the expertise required to acquire the FCA's MiFID II authorisation and ensure full compliance.

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Our MiFID II authorisation service is specifically designed to ease the burden on your shoulders. We provide guidance throughout the entire licencing process, from the initial application stage to ongoing compliance obligations. With our extensive knowledge and experience, we streamline the process, saving you valuable time and resources.

 

Our Services for Investment Firms

Buckingham Capital Consulting offers a comprehensive range of services to assist your business in achieving regulatory compliance and managing risk effectively. Our team of experts can help you navigate complex regulatory landscapes, develop robust compliance frameworks, and implement tailored solutions to meet your specific needs.

 

MiFID II Compliance Assistance

We provide comprehensive support to help businesses meet the regulatory requirements of MiFID II. Our services include conducting gap analysis, developing and implementing compliance frameworks, reviewing policies and procedures, and providing ongoing guidance to ensure adherence to MiFID II regulations.

 

AML Compliance Solutions

Our team assists in developing robust Anti-Money Laundering (AML) programs tailored to the specific needs of your business. This includes conducting risk assessments, designing and implementing AML policies and procedures, establishing compliance monitoring systems, and delivering staff training programs to enhance AML awareness.

 

Regulatory Reporting

We offer assistance in meeting regulatory reporting obligations, including transaction reporting, periodic financial reporting, and other regulatory filings. Our experts ensure accurate and timely submission of reports to the relevant regulatory authorities, helping you maintain compliance with reporting requirements.

 

Compliance Monitoring and Testing

Our professionals conduct comprehensive compliance monitoring and testing programs to assess the effectiveness of your internal controls and compliance frameworks. We identify potential gaps, provide recommendations for improvement, and help you establish robust monitoring systems to proactively detect and address compliance risks.

 

Risk Management Solutions

We assist in developing tailored risk management frameworks, including risk assessment methodologies, risk appetite statements, and risk mitigation strategies. Our services cover various risk areas, such as operational risk, market risk, credit risk, and regulatory risk, enabling you to effectively manage and mitigate risks within your business operations.

 

Training and Education

We provide customised training programs to enhance staff knowledge and awareness of regulatory requirements and best practices. Our training covers a wide range of topics, including compliance, AML, market abuse, data protection, and more. We can deliver training sessions in-person or through virtual platforms, ensuring your staff is equipped with the necessary skills to maintain compliance.

 

Compliance Audit and Review

Our team conducts independent compliance audits and reviews to assess the effectiveness of your compliance program. We evaluate the adequacy of policies and procedures, conduct testing, and provide detailed reports with recommendations for strengthening your compliance framework.

 

Regulatory Change Management

We assist businesses in navigating regulatory changes by monitoring and analysing relevant regulatory updates. Our experts help you assess the impact of regulatory changes on your operations, update policies and procedures accordingly, and ensure ongoing compliance with evolving regulatory requirements.

 

Whistleblowing and Conduct Risk Management

We provide guidance on establishing effective whistleblowing programs and conduct risk management frameworks. This includes developing policies and procedures, implementing reporting mechanisms, and conducting investigations into reported concerns to ensure a strong culture of ethics and compliance within your organisation.

 

Regulatory Relationship Management

We offer support in managing relationships with regulatory authorities. Our experts assist in preparing for regulatory inspections, responding to regulatory inquiries, and resolving compliance-related issues, ensuring a positive and cooperative interaction with regulators.

 

MiFID II Investment Firm Licence Authorisation

Below are all the essential aspects of successfully becoming a licensed and regulated MiFID II investment firm, including minimum capital requirements, fee structures, timeframes, PRA threshold conditions, conduct of business rules (CoBs), systems and controls, and the extensive list of required submission documents.

 

Minimum Capital Requirements

When applying for the MiFID II licence, firms are required to meet specific minimum capital requirements set by the Financial Conduct Authority (FCA). These requirements depend on the type of investment services provided:

• Non-Advisory Activities: Firms offering non-advisory activities need a minimum capital of €75,000. This ensures that firms have a sufficient financial cushion to support their operations and protect the interests of clients.

• Investment Advice or Receiving and Transmitting Orders: Firms providing investment advice or receiving and transmitting orders need a minimum capital of €150,000. This higher capital requirement reflects the additional responsibilities and potential risks associated with providing investment advice and order handling services.

• Client Money or Assets: Firms holding client money or assets are subject to a higher minimum capital requirement of €750,000. This requirement ensures that firms have adequate financial resources to safeguard client funds and assets effectively.

 

Application Fees

The FCA charges application fees based on the nature and scale of your business. The fee structure for MiFID II authorisation applications includes:

• Initial Application Fee: The fee varies depending on the complexity and size of your business operations. The current range for initial application fees is £1,500 to £25,000. This fee covers the cost of processing your application and conducting the necessary assessments.

• Variation of Permission Fee: If you need to make changes or additions to your licence after it has been granted, additional fees associated with the variation of permission may apply. These fees vary depending on the nature and extent of the changes requested.

 

Additional Requirements

Aside from minimum capital requirements and fees, the MiFID II authorisation process involves meeting other essential requirements set by the FCA:

• Financial Soundness: The FCA evaluates your firm's financial soundness as part of the application process. This assessment ensures that your firm has sufficient financial resources, stability, and capacity to fulfil its obligations to clients and withstand financial stress.

• Suitable Management: Your firm must demonstrate a suitable management structure with individuals possessing the necessary knowledge, skills, and experience to effectively carry out their roles. The FCA expects firms to have competent and capable management teams that can responsibly oversee the firm's activities.

• Client Asset Safeguarding: If your firm holds client money or assets, robust systems and controls must be in place to safeguard these assets in compliance with the FCA's Client Asset Sourcebook (CASS) rules. This requirement aims to protect client funds and assets from loss, misuse, or unauthorised access.

 

Application Documents

Preparing the necessary submission documents is crucial for a successful application. The following is an in-depth breakdown of the required submission documents:

• Comprehensive Business Plan: Your business plan should outline your firm's activities, target market, risk management procedures, and financial projections. Provide detailed information about your business model, operational strategies, and marketing plans. This document offers insights into your firm's operations and its ability to meet regulatory obligations.

• Compliance Policies and Procedures: Develop comprehensive policies and procedures covering client classification, conflicts of interest, best execution, inducements, and other relevant areas. These policies should outline the steps your firm will take to comply with regulatory requirements and protect clients' interests. Include detailed procedures for identifying and managing conflicts of interest, ensuring best execution, and handling inducements.

• Risk Assessments: Conduct thorough risk assessments tailored to your business, identifying and addressing potential risks and vulnerabilities. Provide a detailed analysis of the risks associated with your activities, including operational, market, and compliance risks. Outline risk mitigation strategies and measures your firm will implement to ensure effective risk management.

• Financial Reports and Statements: Provide accurate financial reports and statements demonstrating your firm's financial stability and ability to meet regulatory obligations. Include balance sheets, profit and loss statements, cash flow statements, and notes to the financial statements. These reports should cover a sufficient period to provide a clear understanding of your firm's financial position and performance.

• Client Asset Safeguarding Evidence: If your firm holds client money or assets, include evidence of robust systems and controls for client asset safeguarding. This may include documented procedures, internal controls, risk assessments, and independent audits that verify your firm's compliance with the FCA's CASS rules. Provide detailed information on how your firm segregates and protects client funds and assets.

• Organisational Structure and Management Information: Include an organisational chart outlining the structure of your firm and key personnel responsible for decision-making and compliance. Provide detailed resumes or CVs of key individuals, demonstrating their qualifications, expertise, and experience. Highlight any relevant certifications, qualifications, or memberships held by key personnel.

• Client Agreement and Disclosures: Provide a sample client agreement and disclosures that outline the terms and conditions of your services and disclose all material information to clients. These documents should include clear and concise explanations of fees, charges, risks, and other relevant details.

• Marketing and Advertising Materials: Include copies of your marketing and advertising materials, ensuring they comply with regulatory requirements and accurately represent your firm's services. Provide evidence of the systems and controls in place to ensure fair and clear communication with clients.

 

Buckingham Capital Consulting can help navigate the MiFID II investment authorisation process. Our team of experts possesses extensive knowledge and experience in FCA regulations and compliance requirements. We provide personalised guidance throughout the application journey, ensuring that your submission meets all necessary requirements.