Investment funds in the UK: how to get a license
All investment funds in the UK must obtain a license from the regulator to carry out their activities. The procedure takes a long time, but the result is worth it. Organizations that have received a license in the UK are trusted and with proper management they will be successful.
Advantages of UK investment funds
Investment Funds UK give a lot of perks to their owners. Investors are confident that such organizations have been thoroughly checked and offer quality services, so they trust them. There are other reasons why people prefer to register an investment fund in the UK or invest there.
Developed financial infrastructure
The UK has one of the world's most developed and prestigious financial infrastructures. London is especially attractive, which is considered an important financial center and is of interest to investors from all over the world.
A wide choice of different structures
In the country, you can register investment funds in different directions: stock, bond, mixed, alternative investment, etc.
In most cases, British investment funds are managed by experienced managers who are well-versed in their work. Therefore, investors can trust them.
Strict controls and customer protection
Investment funds in the UK are strictly regulated by the FCA, which provides a high level of protection. The FCA closely monitors their work and requires them to maintain high standards of transparency and sustainability.
Registering a fund in the UK is beneficial because of the tax benefits for both the organization and the investors. For example, if certain conditions are met, some organizations are exempt from income tax, which can increase the profitability of investors.
Investment fund registration: things you need to know
The registration of investment funds in the UK is carried out through the Financial Conduct Authority (FCA). It is the country's financial regulator. It does not oblige the company to get a license to engage in these activities, but it must have a manager and an adviser who deals with investments. If it is not available, the company is considered illegal.
Licensing cannot be avoided by simply buying an investment fund. The regulator has foreseen the potential loophole and has taken steps to protect investors from people who could not get a license. If a single person buys a block of shares (from 10%), the fund has to be authorized as if it had been created from scratch.
A local government investment fund is the only form of such an organization that has to be licensed by the FCA. The reason for this is that there are no managers. All decisions are made by investors together based on a vote.
Licensed by FCA
A license obtained from the FCA authorizes you to engage in the following activities
- Operate a non-profit (alternative) fund;
- Operate client funds as an investment manager;
- Provide investment advice;
- Form, operate reliably, and close collective investment schemes.
The regulator carefully checks the applicant so that licensing can take up to six months. FCA examines not only the candidacy of the manager but also the work of the investment fund, and how successful the management of assets is held by the organization.
How to get a license for investment fund
Contact IT-OFFSHORE to open an investment fund in the UK in 2023.