Can I manage investments for other people?

Yes, you can manage investments for other people in the UK, but to do so legally, you must comply with certain regulatory requirements set by the Financial Conduct Authority (FCA). The means either direct regulation or becoming an Appointed Representative. Importantly, Expert Analysis Group is not permissioned by the FCA to provide investment management services so you will need to look at other principle firms if you wish to be an Appointed Representative. That said, we do work with investment managers and we are aware of structures that, in certain circumstances, may provide some limited similarities to investment management. Please contact us to find out more or to examine alternatives.

With regard to investment management, the following points are things you should consider but this list is not exhaustive:

1. FCA Authorisation: You need to be authorised by the FCA to manage investments. This involves applying to the FCA and demonstrating that you meet their criteria for honesty, integrity, and competence. The process includes providing details about your business model, the types of services you intend to offer, and your arrangements for compliance and risk management.

2. Regulated Activities: Managing investments on behalf of others is considered a regulated activity under the Financial Services and Markets Act 2000. This includes making decisions on buying or selling investments or holding and controlling clients' money or assets.

3. Professional Qualifications: Typically, individuals involved in managing investments must have appropriate qualifications. The FCA website lists recognised qualifications that fulfil this requirement.

4. Compliance Requirements: As an authorised firm, you must comply with ongoing FCA requirements, which include adhering to principles of business that ensure fair treatment of clients, maintaining adequate financial resources, and implementing effective risk management processes.

5. Client Agreements and Transparency: You must provide clear information to your clients about the services you offer, the fees you charge, and the terms of engagement. It's also crucial to keep clients informed about the performance and management of their investments.

6. Continuous Professional Development: Keeping up-to-date with regulatory changes, market developments, and professional knowledge is crucial for maintaining compliance and providing effective investment management services.

For those new to investment management or lacking the resources to obtain direct FCA authorisation, another route is to become an Appointed Representative of an already authorised firm. This allows you to operate under their regulatory umbrella while you build your experience and capabilities.

Given the complexity of regulatory requirements, it's often advisable to seek professional advice or consultation to ensure that all legal obligations are met before you begin managing investments for others. While Expert Analysis Group is not permissioned to provide investment management we work with investment managers and can help you explore options that may give you what you want.