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Qualifications required to promote Darwin beyond family and friends

Hey Darwinex - in the latest blog/webinar it was mentioned about obtaining certification as a Wealth Manager in order to promote a Darwin beyond immediate family and friends to gain more investors.

Does anyone know which would be the level required? I am UK based and so far have found this qualification which seems entry level and FCA recognised: https://www.cfauk.org/study/imc

Has anyone looked into this and provide any further direction?

Thanks in advance and all the best - Chris

3 Likes

@BLVCKtrading -> I do, and I am an IMC holder! This is what company employees used to have to do under the old FCA regime (they’re now changing it) and is exactly the right certificate to go beyond F&F. The key word will probably be for you to become:

  • A Darwinex Appointed Representative (AR) which basically authorises you to operate under the Darwinex regulatory umbrella, OR
  • An FCA regulated Introducing Broker - whereby you get your own permission to become one

How about we record a Zoom session where you explain your concerns / doubts, I tackle as best as I can, and we put it out here for everyone else to benefit? We could loop in our Compliance Advisors to provide first guidance on this topic.

7 Likes

Hi juancolonbo

Thank you for the reply, that is great! I wanted to make sure that I invested the time in the correct regulatory qualifications and I wasn’t going down the wrong path. I appreciate you taking the time to answer this question, I would definitely be interested in learning more about the process and route to become a Darwinex Appointed Representative and will research the route to becoming an FCA Introducing Broker.

My main effort is to be legally allowed to gain investors without falling foul of the FCA for not having the correct licence/qualification.

If I can provide value to the community I would be more than happy to record a session whenever works for you.

All the best,

Chris

3 Likes

Not sure this is what anyone really looks for, but here’s some places to keep learning:

Things we’ll need our ARs to prove competencies are:

  • AML
  • Approved Persons Regime
  • Conflicts of interest
  • Financial Promotion
  • Market Abuse (albeit less relevant given the assets we offer)

NB this has changed with SMCR roll out -> reviewing with our compliance advisors at this very moment. More on this in our recording

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In addition to the good info Juancolonbo already provided, I would like to say that FCA has dozens of different authorisations and licenses (and you might need to apply for more than one).
You want to directly manage people’s money? Wealth management is what you are looking for.
You want to manage people’s money through a broker, without “touching” your customers’ money? Asset management should be enough.
You want to manage people’s money inside a firm? Approved person is the one you are looking for (although it should be the firm to request it for you).
My suggestion is to have clear in your mind what you want to do and then contact a lawyer. FCA will require a detailed business plan, they will ask you what is your background, how you intend to get people’s money, how you are going to manage it, proof that you are not laundering money etc.
You have to meet their minimum capital requirement, you have to set up a company or register as a sole trader.
I’ve been through it… trust me, if you are serious about that, the money you spend on a lawyer to get a certification and be authorised is money well spent.

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Hi juancolonbo & FedericoSellitti

Thanks for your replies and updates, it looks like there is a vast amount of information and legislature out there. I’m sure this subject is of interest to a lot of Darwinex members.

For myself, apart from trading for 2+ years I don’t have a background in finance, so at this stage I am literally just looking to be able to legally advertise my Darwin beyond Family and Friends, such as on a website or social media.

If this is as simple as a Disclaimer that’s great but I am willing to put the work in to gain relevant qualifications to legally promote my Darwin. I am happy to keep my fund/asset management activity within the Darwinex infrastructure and as such just want to be on the right side of the FCA in that respect.

Thanks again for your time and replies,

Chris

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Hi @juancolonbo and @BLVCKtrading ,

A series about regulation needed would be really awesome. It would also be interesting if you can also expand on the EFPA certifications, and if Darwinex could be the entity that certifies your “experience” in the financial sector via the track record of a Darwin, as this certificates requiere you to have at least 6 months of professional experience.

Best regards,
M