Find out what permissions you'll need to apply to us for authorisation, how much you'll need to pay and what we expect to see in your application.
An investment manager manages portfolios in accordance with mandates given by clients on a discretionary client-by-client basis. These portfolios include one or more MiFID financial instruments.
The mandate is set out in the Investment Management Agreement (IMA) which lists the services that correspond to the business plan.
Individual and collective portfolio management
As an investment manager, you could have just one client (such as a fund) or you could offer a separate account service for professional and/or retail investors.
It's important to be able to distinguish between whether your firm is undertaking:
- individual portfolio management, or
- collective portfolio management
because this will determine which regulatory framework your firm will be subject to: UK MiFID or UK AIFMD/UK UCITS (or a combination of the regimes).
Please refer to our diagram[3] which explains the differences between individual and collective portfolio management.
Permissions you'll need
Typically, these are the permissions required:
- advising on investments
- arranging (bringing about) deals in investments
- agreeing to carry on regulated activities
- dealing in investments as an agent
- making arrangements with a view to transactions in investments
- managing investments
- controlling and/or holding client money
Managers may also require the following permissions:
- arranging the safeguarding and administration of assets
- safeguarding and administering assets (accepting client assets)
For full details, refer to our table of permissions you might need and the terms being used[4].
Application fee
Your fee falls into pricing category 6.
Find out more about your application fee[5], including how to pay.
Prudential requirements
Investment firms subject to the UK implementation of MiFID will have their requirements set out in MIFIDPRU[6] (our prudential sourcebook for investment firms).
Most investment managers will be classed as small non-interconnected firms, meaning the base Permanent Minimum Requirement (PMR) is £75,000.
Some investment managers may qualify for an Article 2 exemption from MiFID, and so would not be subject to MIFIDPRU, for example an occupational pension scheme (OPS) firm. The prudential requirements for these types of firms are set out in IPRU-INV 5[7].
If you intend to hold client money
You won't be classed as a small non-interconnected firm and it's likely that you'll have a have a higher Own Funds Requirement.
What to include
Before submitting your application through our Connect[8] system, make sure you've prepared:
- your regulatory business plan, 3-year financial forecast and the other things we expect to see in all applications[9]
- the required forms and supporting material listed below
