Wealth Management
FCA Authorisation
Specialist regulatory support for wealth managers, investment advisers, and discretionary fund managers serving high-net-worth individuals and institutional clients.
Wealth Management Regulatory Landscape
The wealth management sector encompasses investment advisory, discretionary portfolio management, and dealing services for affluent individuals, families, and institutional investors.
FCA regulation of wealth managers has intensified following implementation of MiFID II, with heightened focus on suitability, client categorization, costs and charges disclosure, and governance arrangements.
Successfully navigating the authorisation process requires demonstrating robust investment processes, comprehensive risk management, and client-focused governance structures that meet the FCA's high standards.
Typical Services
- Discretionary portfolio management (DPM)
- Investment advisory services
- Execution-only dealing services
- Pension transfer and consolidation advice
- Estate and succession planning
- Tax-efficient investment planning
Required FCA Permissions
Wealth management firms typically require multiple permissions depending on their service model.
Advising on Investments
Providing personal recommendations on buying, selling, or holding investment products tailored to client circumstances.
- Qualified advisers
- Suitability assessment
- Client categorization
- Product due diligence
Managing Investments
Discretionary management of client portfolios with authority to make investment decisions without prior client approval.
- Investment management agreements
- Risk profiling
- Best execution
- Portfolio reporting
Dealing in Investments
Buying and selling securities as principal or agent, including execution-only services.
- Trading systems
- Best execution policy
- Client money protection
- Transaction reporting
Arranging Deals in Investments
Facilitating transactions between clients and product providers or investment platforms.
- Platform due diligence
- Execution venues
- Order handling
- Inducements policy
Safeguarding and Administration
Holding or controlling client money and assets, subject to CASS rules.
- CASS framework
- Client money segregation
- Asset reconciliations
- CASS oversight
Operating an Organised Trading Facility (OTF)
Running a multilateral system for executing client orders in bonds, derivatives, or emission allowances.
- Trading platform infrastructure
- Pre and post-trade transparency
- Market abuse systems
- Transaction reporting
Key Regulatory Requirements
Wealth managers must demonstrate compliance with comprehensive regulatory frameworks.
MiFID II Compliance
Client Assets (CASS) Requirements
Suitability and Client Assessment
Senior Managers & Certification Regime
Governance and Oversight
Financial Resources
Common Authorisation Challenges
Issues we frequently help wealth management firms navigate during the FCA application process.
Implementing client money and asset safeguarding rules is often the most technically challenging aspect. We provide fully documented CASS frameworks, reconciliation templates, and operational procedures.
The FCA expects robust experience in investment management. We help you showcase relevant experience, build credible investment teams, and structure governance appropriately.
Meeting and maintaining adequate capital can be challenging for smaller firms. We model capital requirements, structure capital efficiently, and demonstrate sustainability.
The FCA expects robust investment management systems, risk monitoring, and compliance technology. We help select appropriate platforms and document system effectiveness.
Building comprehensive suitability processes covering risk profiling, product selection, and ongoing reviews. We provide complete suitability frameworks aligned with FCA expectations.
MiFID II product governance requirements around target markets, distribution strategies, and product reviews. We implement governance frameworks that satisfy regulatory standards.
How We Support Wealth Managers
Pre-Application
- Business model scoping and permissions mapping
- Capital and resource planning
- Senior Manager identification and recruitment support
- Systems and platform selection guidance
- Investment process design
- CASS framework implementation
Application Preparation
- Complete Connect application submission
- Investment management agreement drafting
- Suitability and appropriateness frameworks
- Risk management and governance documentation
- Compliance manual and procedures
- Financial projections and capital adequacy
Post-Submission
- FCA query management and responses
- Senior Manager interview preparation
- Additional information requests
- Conditional approval requirements
- Post-authorisation compliance support
- Ongoing regulatory advisory
Ready to Get Authorised?
Speak with our wealth management regulatory specialists to discuss your FCA authorisation.