London City

Our top tips for investment firms...

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Steps to achieve FCA authorisation...

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Authorisation options (Licence options) for investment firms...

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An outline of the timeline to an investment authorisation...

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Discretionary investment managers (DIMs) provide a critical role on the buy side and play an invaluable role in managing their clients assets. Most small and medium sized DIMs are authorised for both advisory and investment management permissions with a combination of agency dealing and custody or arranging custody permissions. As such, most DIMs are classed as being either BIPRU50K firms or IFPRU125K firms for prudential purposes.

On top of having to meet several requirements stemming from regulations such as MiFIDII, GDPR, and MAR, DIMs have increasingly faced the challenges of passporting post-Brexit. Outside the challenges of post-Brexit, implementation of the new prudential regime for investment firms known as IFPR might pose a challenge to several small and medium DIMs. Some DIMs also operate and manage AIFs (alternative investment funds) or UCITs funds (undertakings for collective investment in transferable securities) and come within the respective AIFM and UCITS regulations on top of MiFID.

For regulatory purposes such firms are known as collective portfolio management investment firms (CPMIs).  Some DIMs choose to make use of a regulatory hosting platform to avoid being directly authorised by the FCA and operate as an appointed representative of a principal firm instead. However, others decide to be authorised and regulated directly providing flexibility. Our Consultants have tremendous experience working with DIMs and supporting all regulatory, compliance, and risk functions.

Discretionary Investment Management

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How Pillar 4 Can Help

Authorisation

         Pro bono initial assessment of your authorisation aspirations and guidance on regulatory  permissions

         Full application support on a project managed basis from start to finish

         Guidance on navigating the FCA’s current approach to DIMs including key concerns

         Support in formulating the right governance structure for your firm

         Staff skills and competency assessments

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IFPR implementation

         Pro bono initial assessment of the impact of IFPR on your business

         Financial modelling and full implementation of the IFPR and shift from ICAAP to ICARA

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Risk management

         Developing integrated risk management, capital monitoring, and reporting tools

         Developing suitable pillar 2 approaches

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On-going compliance support

         Providing specialist advise

         Revamping compliance monitoring programmes to something practical and workable in  line with regulations

         Providing risk based on-going compliance monitoring and testing 

         Support in regulatory reporting and capital adequacy reporting

Questions?

+44 (0) 207 459 4607

Please complete the form below with as much detail as possible and we will get back to you within 24 hours

Copyright @ 2020 Pillar 4 Consultants Ltd.
Company registration number: 12547364
Registered address; 56 Katie Court, London, England, United Kingdom E16 1XS
Business address:  1 Royal Exchange Avenue, London, England, United Kingdom  EC3V 3LT
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