Can I have a corporate client that wishes to raise capital and also have investors who want to provide capital as clients?

While it is possible to have a corporate client that wishes to raise capital and also manage investor clients who want to invest in that corporate client, it presents significant, and potentially insurmountable, conflicts of interest that must be managed carefully to comply with regulations set by the Financial Conduct Authority (FCA) in the UK. In fact, at Expert Analysis Group we do not permit our ARs to act for both the buy side and sell side in the same transaction.

Here are key considerations to ensure compliance and manage conflicts of interest:

Disclosure: You must fully disclose your relationships with both the corporate client and the investors. Transparency about your role and any fees or commissions you receive is crucial.
Conflict of Interest Policy: Develop and implement a robust conflict of interest policy. This policy should outline how you identify, manage, and disclose any conflicts of interest that may arise from representing both parties in the transaction.
Client Consent: Obtain explicit consent from all parties involved after disclosing potential conflicts. This ensures that both your corporate client and the investor clients are aware of each other's involvement and any potential conflicts.
Independent Advice: Encourage parties to seek independent legal and financial advice. This helps ensure that both the corporate client and investors are making informed decisions based on unbiased advice.
Fair Treatment: You must treat all clients fairly, ensuring that no client is disadvantaged by any conflict of interest. This involves equitable management of opportunities and risks for all clients.
Regulatory Compliance: Ensure that all activities comply with FCA regulations, including those related to dealing, advising, and managing investments. Depending on your specific activities, you might need additional permissions or to operate under certain conditions defined by the FCA.

If you are thinking of acting for both the buy side and sell side in a transaction you should always consult with a compliance professional or legal advisor to ensure that your specific setup adheres to all regulatory requirements and best practices.