Why is an authorised firm required?

Under UK law, any companies or individuals undertaking 'regulated activity' must be authorised by the Financial Services Authority (FSA).  Among other things, regulated activities include:

  • Establishing, operating or winding up a collective investment scheme

  • Approving 'financial promotions'

  • Arranging deals in investments

  • Managing investments

  • Arranging the safeguarding and administration of assets

  • Advising on investments

  • Dealing in investments as agent 

 What are the Operator's duties?

  • Establish the partnership and deal with public notices

  • Carry out money laundering and customer due diligence

  • Process subscription agreements and coordinate payment of commissions

  • Admit and register new investors and issue unit certificates

  • Operate and reconcile bank accounts

  • Oversee activities performed by the General Partner and Asset Manager

  • Monitor performance with scheme documentation and corporate governance

  • Approve and make distributions to investors

  • Provide periodic statements about fund portfolio and investments

  • Deal with transfers of scheme units