Registering an Online Financial Advisory Company in UK

Discussion in 'Growing and Managing a Business' started by dave789, Jun 27, 2012.

  1. dave789

    dave789
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    Hello!

    I am interested in creating an online financial advisory service. I am normally based in Russia but think it would be better for the site if it showed the London address instead of the St-Petersburg, Russia. I wonder if you have experience registering a company in UK for the internet business? I have made a search and found the following offers:

    companiesmadesimple. com/company-formation-name-search.html
    smallfirmsservices. com /services/company-formation.aspx
    companyformations247.co. uk/
    blueskyformations.co. uk/company-formations

    I understand I might need to be authorized by FSA, which might take quite a long time to complete .I plan to provide technical analysis service. Providing the analysis for major currency pairs and also providing periodical trade recommendations with precise entry and exit levels. I am not sure how to classify it according to FSA.

    Besides registering in UK - what other alternative route you might suggest? I want to be registered outside of the Russia - I personally not plan to live here - I am in another country. I am just registered there as a Russian citizen. Do you know of other European countries where it might be possibel to register the company without the need to be accountable to some firm financial regulatory body?

    Thanks a lot for your time!


    Thanks

    Dave
     
  2. Fergal

    Fergal
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    Dave, do you plan on actually being based in London or will you run the business from Russia?
     
  3. dave789

    dave789
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    I do not plan to move to London now....I plan to stay outside of Russia and Uk for now........I wonder if the Ireland can be a place to register the financial service company as well? You think the financial service companies are as tightly regulated in Ireland as they are in UK by FSA?
    THANKS!)
     
  4. Fergal

    Fergal
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    Dave we have had a lot of international financial based businesses register in the IFSC here in Ireland. Like most other countries Ireland have tightened up our regulations in this area, following on from the financial crisis and global recession, too little too late but that's another story.

    Is there a reason why you want to register your business outside of the jurisdiction where you will be operating that business?
     
  5. Mark T

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    Fergal,

    I don't know much about this matter, but in this cases does UK/London requires such service to be based on London anywhere in UK itself to be given authority or license to operate in there?
     
  6. dave789

    dave789
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    Yes, I wish to register in UK or EU because I want to increase the credibility of teh website to the clients. Not that I am going to offer anything of the dubious quality - on the contrary I plan to provide very new way to analyse the markets. I just think the conversions will be lower if I register at Russia. What do you think in this regard?

    Do you mean do I need the license to operate in UK while offering online service?
     
  7. Fergal

    Fergal
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    That's a good point, some prospective clients will view your business more favourably depending on where it is registered. Something you might consider is contacting the embassies or consulates of the relevant countries and ask them to point you in the right direction for getting registered in their jurisdiction. Another option would be to search on Google for the "financial regulators" in each of the relevant countries and contact them for assistance.

    Good luck with it.
     
  8. dave789

    dave789
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    Thank you for your suggestion to call the embassies.

    I forgot to mention that have a forex website at a USA registrar which has been online for quite some time which provides free forex education and which has been steadily attracting visitors – I have some visitors now that I wish to present my service to…Let me describe the service as well – it will be purely informational service – I will tell where are the major levels are – for example where are the major historical price levels are from which the price will invariably reverse when it approaches it……..I will add short trade recommendations close to each level…but that will remain as the information I mean I will not personally call anyone to trade – nor will I advise anyone in person or in private….just pure information…I will also provide more detailed entry and exit signals but that will be standard signals issued by all signal providers of whom there are millions over the internet….

    Do you think I will still need to be regulated by FSA or a similar regulatory body elsewhere????
     
  9. daytrader

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    As far as I know you don't need FSA if you just want to provide financial advisory services. Would you?
    Unless you intend to become a broker.
     
  10. dave789

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    Thank you for your reply......that would be a happy news for me)) do you perhaps knwo of the similar advisory bushinesses in UK which operate without the FSA authorization?
    thanks!
     
  11. Fergal

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  12. dave789

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    yes I called me before and they referred me to the following definition of the advising on investments:

    http://fsahandbook.info/FSA/html/handbook/Glossary/A

    advising on investments
    2, 42the regulated activity, specified in article 53 of the Regulated Activities Order (Advising on investments), which is in summary: advising a person if the advice is:
    (a) given to the person in his capacity as an investor or potential investor, or in his capacity as agent for an investor or a potential investor; and
    (b) advice on the merits of his doing any of the following (whether as principal or agent):
    (i) buying, selling, subscribing for or underwriting a particular investment which is a security or relevant investment (that is, any designated investment, funeral plan contract, pure protection contract, general insurance contract or right to or interests in a funeral plan contract); or30
    (ii) exercising any right conferred by such an investment43 to buy, sell, subscribe for or underwrite such an investment.30

    I will need to call some FSA compliance firm... do you know any?)
     
  13. Fergal

    Fergal
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    Are you sure that you need to go to the expense of hiring a firm like that, could you not get all the information you need directly from the FSA?
     
  14. dave789

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    thank you for your reply))) well they bluntly told me they are not compliance consultants....and recommended I talk to such fimr on my own......wish there was a book on these matters - maybe you know of any INTERNET STARTUP GUIDE like that?)
     
  15. Fergal

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    As they are in charge of compliance they should be willing to go some way to help you become compliant. Fair enough if they will not act as compliance consultants, but perhaps they may be able to recommend resources such as consultants, books and other guideline documentation to you?
     
  16. dave789

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    Thank you for your reply.....Yes I might call them later....maybe they can suggest a book on this super-complex matter....

    It is interesting to note what one of the firms doing very similar analysis and already with many forex trader clients to say about this!! It is registered in UK! I wrote them about being regulated BY FSA and here is what they answered:


    We are not FSA regulated as we do not provide financial advice and all our
    information is for Education.

    We are registered in both the UK and US and provide research as well as
    software services.

    Do you think I can mimick their disclaimer and state that all teh material is provided for EDUCATIONAL PURPOSE I an pass under the radar?
     
  17. dave789

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    and here is what the major usa fx signal had to say about beign regulated by NFA (and they are at the

    top of the earch in Google for fx signals):


    In answer to your question; we are located in the USA. Since we are a Forex signal service provider

    and not a boker, we are not required to be under the NFA regulation.




    That is how the major USA forex signal provider replies about beign regulated....andtheyhave the clients all over the world....
     

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